Telephone Industry Develops Asymmetrical Digital Subscriber Line (ADSL) for High-Speed Internet Services

Strategic Insights -

Southwestern Bell Telephone Co. and other phone companies are entering the market for high-speed Internet services by developing a new technology called asymmetrical digital subscriber line (ADSL). This technology is over 30 times faster than conventional modems, with speeds reaching 1.5 million megabits per second. ADSL uses existing copper telephone wires to provide high-speed access to the Internet and the ability to talk on the same phone line simultaneously. However, the primary target market for ADSL is not casual residential users, but rather telecommuters and small businesses that require high-speed access to their corporate networks. As more customers demand faster Internet access, Southwestern Bell plans to expand its focus to include serious hobbyists and consumers.

Key Takeaways:

  • Southwestern Bell Telephone Co. is developing ADSL, a technology that is over 30 times faster than conventional modems, with speeds reaching 1.5 million megabits per second.
  • ADSL uses existing copper telephone wires to provide high-speed access to the Internet and the ability to talk on the same phone line simultaneously.
  • The primary target market for ADSL is telecommuters and small businesses that require high-speed access to their corporate networks.
  • Customers can choose between two pricing plans: $250 per month for full speed (1.5 million megabits per second) or $150 per month for 384,000 bits per second.
  • Pacific Bell will begin selling ADSL in California within three months.
  • Southwestern Bell is experimenting with ADSL in Austin and plans to begin selling it after the trial ends in October.
  • ADSL speed will not drop as more customers subscribe to it, unlike cable modems which can experience speed reductions as more users share the same network node.

Statistics:

  • ADSL is over 30 times faster than traditional modems, with speeds reaching 1.5 million megabits per second.
  • The fastest conventional modem has a speed of 56,000 bits per second.
  • ADSL customers can choose between $250 per month for full speed or $150 per month for 384,000 bits per second.
  • Pacific Bell will begin selling ADSL in California within three months.
  • Southwestern Bell's sister company, Pacific Bell, will begin selling ADSL in California within three months.

Sources:

  • Austin American-Statesman (no publication date provided)