IP: DSL HITS A SPEED BUMP

[David Farber <dave () farber net>]

> 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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