U S West to Award Large-Volume Fiber-in-the-Loop Contracts

Strategic Insights

Apr 23, 1995 — 1 min read

U S West's plans to award large-volume fiber-in-the-loop (FITL) contracts have put pressure on vendors developing switched digital video (SDV) solutions. The contracts, which are likely to be awarded to vendors such as AT&T Network Systems partnered with BroadBand Technologies (BBT), Fujitsu, DSC Communications, and Next Level Communications (NLC), will be crucial for the growth of these vendors. The approval of U S West's 214 video dialtone applications by the FCC is imminent, according to U S West officials, which will allow the company to build broadband networks in nine U.S. cities.

Key Takeaways:

U S West is expected to award large-volume FITL contracts within the next two months, with the likelihood of awarding contracts to vendors such as AT&T Network Systems, BBT, Fujitsu, DSC Communications, and NLC.
The contracts will be crucial for the growth of these vendors, with many of them developing end-to-end SDV solutions to meet U S West's needs.
DSC Communications has an SDV product that is embedded within its Litespan product and is currently available, with a more comprehensive and fully capable SDV product expected to be available for demonstration and evaluation by the end of this year.
NLC has hired several former DSC executives to its top ranks, including Tom Eames and Bill Weeks, who is a former U S West fiber-in-the-loop expert.
The hiring of Weeks, who has close ties with U S West, has raised speculation that NLC may have an inside track in negotiations for the large-volume U S West contracts.

Statistics:

U S West plans to build broadband networks in nine U.S. cities.
The approval of U S West's 214 video dialtone applications by the FCC is imminent.
DSC Communications' Litespan product has a currently available SDV product.
NLC expects to announce its product plans by mid-summer.
The likelihood of NLC having a commercial SDV product ready in less than a year is considered "pretty miraculous".

Sources:

U S West spokesman Dave Banks
NLC President Pete Keeler
DSC Communications spokesman Terry Adams
Fujitsu senior manager of broadband systems planning Faraj Aalaei

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