To: Secret_Agent_Man who wrote (189 ) 6/10/1998 9:17:00 AM From: chirodoc Respond to of 530
Bloomberg News June 9, 1998, 12:59 p.m. PT ......but who is sewing up the "other countries." i can see jimmy's plan. to where the big boys aren't and stake your claim. curtis MCI to Provide High-Speed Internet, Phone Services (Update1) (Adds more comment from MCI in 12th, 14th paragraphs. Updates share activity.) Washington, June 9 (Bloomberg) - MCI Communications Corp., the No. 2 U.S. long-distance telephone company, said it will begin providing services that allow customers to access the Internet at high speeds and place calls on the same phone line next year. The company is testing equipment that uses digital subscriber-line technology as well as routers that can handle large amounts of voice and data traffic at high speeds. MCI is now providing some of these services to businesses in certain markets such as Chicago and New York. MCI, matching Sprint Corp. and other competitors, is seeking to profit from increasing demand from consumers and business for high-speed data services. The company said it plans to spend tens of millions of dollars to deploy new equipment. ''We will provide a full range of services, maybe TV channels, high-speed Internet access, voice and fax at (prices) that aren't much more than what customers are paying for Internet access today,'' Fred Briggs, chief technology officer, said in an interview. With the technology, ''you really unlock the promise of the information highway,'' he said. Last week, Sprint unveiled plans for a high-speed network that combines voice calls, faxes and Internet traffic over conventional phone lines, seeking to offer lucrative Internet- based services before its rivals. Sprint, the No. 3 U.S. long-distance company, said it has spent more than $2 billion in the past five years to develop the system, which it said will cut the cost of phone calls by 70 percent and provide video calls that are cheaper than today's long-distance call. High-Speed Race Sprint, in a race to beat No. 1 AT&T Corp. and MCI, is betting its network upgrade will boost its share of the mushrooming market for Internet traffic and appeal to customers needing a range of phone services. Still, MCI's Briggs said efforts by MCI and other long- distance providers need help from regulators to ensure they can get access to the local phone lines operated by the Baby Bells. Baby Bell U S West Inc. said in early May that it will introduce high-speed Internet access more than 200 times faster than available with a conventional modem through a technology called asymmetrical digital subscriber lines in 40 cities. Two weeks ago, BellSouth Corp. said it will offer high-speed access in 30 cities by next year. GTE Corp. has similar plans. Testing Equipment Briggs said MCI is testing equipment from a wide range of companies such as Lucent Technologies Inc., Cisco Systems Inc., Northern Telecom Ltd., Alcatel Alsthom and Ascend Communications Inc. ''We are working with all of the major vendors,'' Briggs said. MCI's Briggs said the company will use Internet protocol technology to deliver the services. With IP, a phone call is broken into several ''packets'' of information and sent over multiple routes and reassembled at its destination. Traditional circuit-switched phone services use a single line for the duration of a call, making it more expensive for phone companies. By contrast, Sprint's upcoming service is based on asynchronous transfer mode technology. Briggs said certain customers, such as large businesses who lease their own private lines, can get Internet and voice services simultaneously over one phone line now. MCI shares rose 7/16 to 51 15/16 in late trading. --Colleen McElroy in New York, through the Princeton newsroom