High-Tech Giants Join To Promote DSL For Internet Access

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January 20, 1998 (7:58 AM EST)

High-Tech Giants Join To Promote DSL For Internet Access

By Christine Casatelli,

Three high-tech giants are expected to join forces this week with local telephone companies to develop a new communications technology that would boost Internet access speeds by as much 30 times today's rates.

The group -- said to be comprised of Compaq, Intel, and Microsoft, as well as GTE and four of the RBOCs -- is targeting the Christmas buying season for the launch of software and modems based on DSL technology, The New York Times reported Tuesday.

DSL is a modem technology using packet switching technology that operates independent of the voice telephone system, allowing the telephone companies to provide the service without locking up circuits for long calls. ADSL service provides faster downstream speeds and is suited for Internet usage and video on demand, where the heaviest tranmission requirement is from the provider to the customer.

DSL has been under development, with nearly all the RBOCs exploring multimegabit services for Internet and remote LAN access using existing copper loops. Several active trials are under way. For example, U S West, GTE, and Southwestern Bell are offering commercial DSL services in limited geographical areas.

According to Beth Gage, a broadband consultant at TeleChoice, the DSL market is expected to reach an installed base of 350,000 lines this year, 500,000 in 1999, and 1 million in 2000.

The rush toward a low-cost Internet service by telephone companies has been more urgent as more cable companies have made moves in the market. Market research firm Forward Concepts said it projects that cable modem prices will drop from around $500 now to less than $200 by 2001.