"In Search of... Broadband" (Mang's caution - BellSouth news is known for a long time)
April 16, 1999
Computer Shopper : BellSouth and 3Com team up to deliver high-speed access, and Manhattan sees RED as it gains a new DSL service
By Stephanie Izarek
Once a private perk of high-tech corporate America, high-speed
Internet access is--in a roundabout way--finally making its way to
smaller businesses and home users.
Despite high consumer demand, broadband-hardware vendors must
leap hurdles that are equally steep: product availability, high service
costs, and limited access. A report from Cahners In-Stat Group found
that in spite of numerous product announcements, only an "elite
group" of vendors are shipping products in significant quantities.
Cahners also found that cable-modem shipments are outpacing ADSL
modem sales. To date, the cable industry has attracted up to
700,000 high-speed subscribers. The local phone carriers' ADSL
technology has won only 25,000, according to the FCC. Currently,
Motorola andBay Networks dominate the cable-modem market, with
over 60 percent market share. Cisco leads the ADSL market with a 32
percent share.
The In-Stat Group believes that the broadband market will remain
volatile over the next year, particularly as standards issues heat up
and more service providers open their networks--or refuse to do so.
Another factor that could expand the market is the new players. For
instance, in New York City, Prism Communication Services offers a
DSL service called RED that lets mainstream users become speed
demons--provided they can get through the busy phone lines to
subscribe and have some serious cash to spare.
RED targets small businesses, home offices, telecommuters, and
power users with "always-on," superfast Internet access over existing
copper telephone lines. Using a Nortel Networks digital modem, RED
customers can download data at speeds of up to 1Mbps. RED also
includes e-mail and Web-hosting services, making it unnecessary for
customers to have another ISP.
Prism promises resolution for all customer inquiries within 24 hours and
provides 24x7 support. It will soon offer consolidated monthly charges
for Internet access and future voice, video, and extranet services in
a single bill.
Through a partnership with Comdisco, Prism will offer advanced
communication services such as equipment leasing, nationwide
Internet and extranet hosting, automatic storage products, and
asset-management programs.
RED is currently available in all of New York City directly from Prism or
through DataVision, InterSolutions, orJ&R Computer. Availability of
RED services will extend to locations outside the New York
metropolitan area over the next year.
Monthly prices range from the $79.95 RED Res 640Kbps service, which
includes one static IP address, to the $399.95 RED Network 1Mbps
downstream service, which includes six static IP addresses, six e-mail
accounts, and a Cisco1605R router.
The benefits of high-speed access are apparently not lost on the
South, either. BellSouth has teamed with 3Com Corp. to deliver
simple, high-speed Internet and data access via ADSL. BellSouth and
3Com plan to roll out BellSouth.net FastAccessADSL Internet service
using 3Com modems.
Full-rate ADSL services and modems should be available by the time
you read this. The companies plan to incorporate the G.lite
splitterless ADSL standard into the service after it is ratified. For
those areas where DSL is not feasible, BellSouth and 3Com will
provide traditional analog dial-up services and modems. The access
services and 3Com modems will be available through joint retail and
online locations, and at BellSouth's sales offices.
Despite the recent availability of new services, there's some concern
that the already slow growth of broadband access will be further
inhibited by cable operators' unwillingness to open their networks the
same way local phone carriers have done. The regional Bells say the
FCC regulations that require them to lease to competitors have
slowed progress in providing advanced services.
In response, America Online, MindSpring Enterprises, Netscape,
Prodigy, US West, and several ISPs have formed the OpenNET
Coalition. The cable industry has taken a stance against AOL, which
has bet the farm on ADSL, and against interest groups' pleas,
generating an intense lobbying battle over what action the FCC
should take. AOL and the others feel that they cannot compete fairly
in the broadband market if the situation remains status quo.
Active Links
www.bellsouth.net BellSouth.net Services
www.redconnect.com Prism Communication Services
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