To: Neal Hopper who wrote (4213 ) 6/7/1998 4:44:00 PM From: gao seng Respond to of 4429
Re: to hype or not to hype. "And ION isn't a service that will appear "someday" (a mythical time in which Baby Bells offer DSL at a rate humans can pay, you have a real choice of cable-TV providers, and "competition" refers to something other than shopping for the best judge). " excerpt from the wall street journal:msnbc rewindmsnbc.com But the same most certainly did not go for the announcement Sprint made Tuesday. That announcement may still be discussed years from now, and seen as a major turning point in the history of telecommunications and the Internet. And one day it may be a key for understanding why Sprint survived and prospered while telecommunications firms that spent most of the late '90s litigating and lobbying disappeared. What Sprint unveiled Tuesday was a system called the Integrated On-demand Network, or ION, which promises to increase its call-handling capacity 17-fold, cut the cost of long-distance calls by 70% and completely change the way calls are billed - whether those calls are between two people or a personal-computer modem and an Internet-service provider. If ION succeeds, it could also give Sprint a new lease on life, and leave its competitors scrambling to change course. Sprint's realization: The old circuit-switched network, designed for voice calls, is a dead end. A few years ago, while its competitors looked to improve their existing networks (the telecommunications equivalent of putting better and better makeup on a corpse), Sprint quietly embarked on a bold plan to scrap the old design in favor of one using high-speed switches, packet routers and And ION isn't a service that will appear "someday" (a mythical time in which Baby Bells offer DSL at a rate humans can pay, you have a real choice of cable-TV providers, and "competition" refers to something other than shopping for the best judge). optical fiber - a network designed for the Internet world in which all information, whether voice or data, is bits to be disassembled at one end and reassembled at the other. ION is scheduled for rollout to large corporations later this year, other businesses in mid-1999, and consumers in late 1999. Internet users may welcome the prospect of surfing the Web at 100 times the speeds they endure now. But there will be a price. ION will be billed by the bit, not by the minute, with usage measured by a little box - the bit meter of a new age. The fact that surfers were able to cruise all of cyberspace for the price of a local phone call was a fluke of the Internet's being inextricably bound up with an obsolete telecommunications network; with that network's disappearance, the free ride will inevitably disappear as well. ION does face challenges. Sprint is a tempting takeover target, and the implementation of some parts of its new network may leave it butting heads with the phone companies. But ION has the potential to remake a host of things, beginning with Sprint and possibly ending with the entire telecommunications landscape.