To: ahhaha who wrote (2617 ) 8/1/1998 6:43:00 PM From: ahhaha Read Replies (1) | Respond to of 29970
Is ADSL Headed For Black Eye? By Carol Wilson, Inter@ctiveweek, 7/27/98 Telephone companies around the country are finally beginning to offer Internet service providers the chance to deliver faster access over standard phone lines using the technology known as Asymmetric Digital Subscriber Line. But just as this technology leaks into a broader market, Michael Malaga says it's headed for trouble. Malaga has something of a vested interest - as president and chief executive officer of NorthPoint Communications Inc., he sells faster Internet access to Internet service providers (ISPS) in competition with local phone companies. NorthPoint is selling Symmetric DSL (SDSL) service in Los Angeles and San Francisco, but the company has national expansion plans. Malaga says he believes, however, that if ISPs don't consider Asymmetric Digital Subscriber Line (ADSL) as the underlying technology for a service offering and pay attention to other details of that service, they could see market enthusiasm for this new technology quickly ebb. "There is tons of misinformation and tons of hype and expectation setting that is causing there to be some problems in the marketplace" says Malaga, a former executive at MFS Communications Co. Inc. "The fundamental thing that is a problem - [X]DSL is being trotted out as a technology solution. People are not focusing on the service instead of the bandwidth nirvana" An ISP that wants to offer customers what ADSL can deliver - a 1.5-megabit-per-second downstream signal with an upstream signal of 64 kilobits or higher must consider the impact on the backbone network. But the ISP that pays to upgrade that backbone so it can guarantee 1.5-Mbps throughput to its customers is going to want to charge more for the ADSL offering to cover costs, Malaga says. "The first place where expectations may not be met is in regard to pricing," he says. "UUnet [Technologies Inc.] charges $2,000 for a T-1 link to the high-speed backbone. An ISP isn't going to turn around and sell 1.5-Mbps service for $80 and guarantee that throughput." More typically, smaller ISPs buy a connection to high-speed networks and oversell that link, counting on technical methods such as statistical multiplexing to get customers' traffic through and hoping that not everyone is trying to get very high-speed access at exactly the same moment. At the same time, however, the company providing the ADSL transport - a telephone company or competitive carrier - also has to oversell the backbone network, Malaga says. "Say DS-3s [45-Mbps lines] go for about $2,000. If I guarantee that bandwidth, I can only put 24 to 28 customers on that DS-3, and that's not economic" he said. So the telephone company also uses statistic multiplexing, which combines packet streams onto a backbone network, and oversells the DS-3. If the oversubscription is too high, everyone's traffic is delayed, prompting error messages and latency that is too high for services such as voice-over-Internet Protocol. "The customer thinks they are going to get 1.5 Mbps to the Internet,and that's not going to happen," Malaga says."The ISP is oversubscribing and the [local phone company is oversubscribing because they are managing their network as well.As more and more users start using this kind of network, the throughput for everyone drops. And the ADSL technology gets a black eye."