Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : CellularVision (CVUS): 2-way LMDS wireless cable. -- Ignore unavailable to you. Want to Upgrade?

To: James Fink who wrote (957)	1/29/1998 5:15:00 PM
From: James Fink	Respond to of 2063

DSL is by no means invincible:ÿ Heavily hyped Web connection faces major obstaclesÿ By David Bowermaster It's been a good week for the Baby Bells. Reports of an alliance between computer industry giants and the local phone companies to support a new flavor of high-speed Internet access have spawned optimistic projections that the Bells will soon revolutionize, if not dominate, the Web connection business. Well, maybe. Maybe not. ÿ ÿ ÿ ÿTHE RUSH OF ENTHUSIASM about digital subscriber line (DSL) technology was triggered by a New York Times report Tuesday that Compaq, Intel and Microsoft will team with most of the Bells and GTE to set technical standards for DSL modems and network equipment. ÿ ÿ ÿ ÿ ÿ ÿBut before you trash your new 56k modem or cancel your order for cable modem service last month's heavily hyped Web connection technology consider some words of caution from a future member of the DSL coalition. ÿ ÿ ÿ We don't want to mislead anybody to think that this Christmas they're definitely going to be able to go out and obtain DSL equipment or sign up for DSL service, says Ed Reisner, executive director of operations for San Antonio-based SBC Corp. It's still going to have some limiting factors. ÿ ÿ ÿ ÿAs Reisner and others familiar with DSL point out, residents that live a long way from their phone company's central office switches meaning more than 18,000 feet away, by one measure may encounter too much signal degradation to take advantage of DSL. Also, older phone lines and other infrastructure may require upgrades. ÿ ÿ ÿ Unfortunately, even Intel, Compaq and Microsoft have to obey the laws of physics, says Charles Haas, vice president of marketing for Covad Communications, a San Francisco-based provider of DSL services to telecommuters and small business. Long [phone] loops and old copper effect performance. ÿ ÿÿ ÿ ÿ ÿThe Bells actually have been working on DSL for several years. Indeed, technical standards already exist for DSL modems, Reisner says. But nobody has heard of DSL largely because the Bells and DSL equipment makers have ignored those standards and developed and deployed competing versions of DSL that do not talk to one another. Those differences have made it nearly impossible to reap economies of scale in either production or deployment of DSL services. ÿ ÿ ÿ ÿThat fact has helped keep DSL prices prohibitively high. Current monthly rates for DSL service range from $90 up to $250 a month, plus installation and equipment fees of around $150 and $200, respectively. High-speed Internet access over cable lines, by contrast, costs $40 to $50 a month plus $100 for installation. ÿ ÿ ÿ ÿThe computer industry is anxious to see DSL costs come down because they feel speedier connections will make consumers want to spend more time on the Internet and more time on the Net means more demand for new hardware and software. ÿ ÿ ÿ ÿThus on the eve of a meeting in early December of an industry group called the ADSL Forum (ADSL is a popular version of DSL), Microsoft, Compaq and Intel sat down with their phone company counterparts to see what could be done to get DSL to market faster, according to a report in Tele.Com magazine. Those discussions appear to have led to the alliance that will be announced next week. ÿ ÿ ÿ ÿ ÿBut the support is neither unequivocal nor exclusive. When Compaq on Thursday said it is teaming with Ameritech to put DSL equipment in its Presario computers in locations where Ameritech offers DSL, spokesman Mike Berman said the decision in no way means Compaq believes DSL is superior to other forms of high bandwidth connectivity. ÿ ÿ ÿ ÿWe think DSL is very important, but this is not to ignore other things that are going on Berman says.