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

Strategic Insights -

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