To: Bearded One who wrote (3282 ) 4/13/1998 10:37:00 AM From: Herschel Rubin Respond to of 9236
From the WSJ: BIG news - GTE endorses ADSL. I've been following AWRE and just jumped in. I would expect this'll move AWRE up today, slowly at first, as people finally get the idea (e.g. become "Aware") that ADSL will beat out other high-speed access paradigms. _____________________________________________________________ The Wall Street Journal Interactive Edition -- April 13, 1998 GTE Plans to Offer High-Speed Access To Internet Using Regular Phone Lines By JARED SANDBERG Staff Reporter of THE WALL STREET JOURNAL GTE Corp. is expected to announce plans to roll out low-cost, high-speed Internet access using traditional copper phone lines, the latest volley in the race between phone and cable companies to bring fast Internet connections to the living room. GTE said it will begin deployment of "asymmetric digital subscriber line" service, or ADSL, beginning in June, pending approval by the Federal Communications Commission. The technology, which is being tested or implemented by all the regional Bell operating companies, allows extremely fast access to the Internet using traditional phone lines, as much as 50 times the speed of today's modems. GTE, Stamford, Conn., said it will focus first on serving businesses and schools, and then begin deployment to 30 markets, including areas of California, Florida, Texas and Illinois. Prices are expected to start at $30 a month, not including Internet-access fees, installation fees or monthly equipment charges of $12. "This is the largest announcement on ADSL deployment to date," said John Appel, president of GTE Network Services. Mr. Appel said the market for data services is expected to blossom to $400 billion in the next decade, up from $100 billion in 1995. "We need to be a major player," he said. Not if cable companies can help it. Companies such as Time Warner Inc. and AtHome Corp., Redwood City, Calif., are bringing high-speed access to the home through cable modems. Though those companies are estimated to have fewer than 200,000 subscribers, that still represents a lead over telecommunications companies. Other than U S West Communications Group, Englewood, Colo., most regional Bell operating companies are still in the testing phase or haven't made the new technology widely available. Still, John Hunter, an analyst at consulting firm Telechoice Inc. of Verona, N.J., thinks GTE's move is the most significant launch to date of ADSL and says it could begin to turn the tide in favor of the technology. But he noted that phone companies have had trouble introducing high-speed technologies for the home and have been slower than cable firms in rolling out new services. "They're always in reactive mode, where they're pressured by the customer and pressured by the market," Mr. Hunter said. "They're monopolies. Change is very foreign for them." The new technology may also cannibalize an existing high-speed connection offered by phone companies: "T-1" connections, which cost more than $1,000 a month. GTE's ADSL would cost about $150 a month for a similar service speed. GTE has 16 million residential phone customers in 28 states.