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IP: DSL HITS A SPEED BUMP
From: David Farber <dave () farber net>
Date: Wed, 31 Oct 2001 11:15:21 -0500
From: Dewayne Hendricks <dewayne () warpspeed com> DSL HITS A SPEED BUMP Broadband telephony is losing its luster, as several of the large telecom companies put the brakes on rolling out additional DSL capacity. In recent weeks, both Sprint and SBC have announced retrenchments in their high-speed DSL services for consumers and small businesses, and AT&T Wireless is shutting down its wireless broadband service while Sprint is cutting back on a similar service. After a phenomenal 50% growth rate last year, the growth rate of new DSL customers slowed to 14% in the second quarter, according to consulting firm TeleChoice. Bucking the trend are Verizon and BellSouth, which are sticking to their goals, although they're focusing on signing up customers where the service is already available rather than expanding into new territory. At issue are the high deployment costs of DSL -- typically it takes a provider two years to earn back the investment it makes in installing a consumer's DSL line and providing the service. Exacerbating the problem is the fact that DSL deployment cuts into the phone companies' lucrative second-line business as well. Bell executives blame regulators for the slowdown, noting that the requirements to share their networks with rivals at a discount have created a disincentive to innovation and expansion. (Wall Street Journal 29 Oct 2001) <http://interactive.wsj.com/articles/SB1004305242345271600.htm> (sub req'd)
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- IP: DSL HITS A SPEED BUMP David Farber (Oct 31)