| MSN launches broadband trials |
| By Matthew Broersma, ZDNN March 29, 1999 URL: http://www.zdnet.com/zdnn/stories/news/0,4586,2232877,00.html |
| Microsoft Network’s (MSN) latest announcement refers to testing a high-speed online access service, beginning this Monday. According to MSN, the service will be based in Digital Subscriber Line (DSL) technology, which is being tested in Atlanta and Seattle, and will begin tests soon in Chicago and San Diego. Microsoft’s plan includes deploying and offering the service in at least 20 major cities by this fall. |
| Consumer options for high-speed Internet access up to now are either to have DSL provided from Regional Bell Operating Companies (RBOCs), such as Pacific Bell and Bell Atlantic, or cable-modems, offered through cable television companies. |
| Earlier this month Microsoft made a $30 million investment in Rhythms NetConnections, a competitive telephone company that sells DSL access to corporate customers. In addition, UUNet, a national backbone provider, will be handling the DSL infrastructure. |
| Microsoft’s entry into the high-speed access business is expected to increase competition in the market for broadband consumer services, and between the telcos and the cable companies. |
| America Online Inc. has so far taken the lead among mainstream online services in pursuing broadband. The company began DSL trials with GTE Internetworking in April of last year, and this year has forged DSL partnerships with SBC Communications (which includes Southwestern Bell and Pacific Bell) and Bell Atlantic. |
| Giga predicts that, despite cable's sizeable lead, DSL will surpass the rival technology in usage within 18 months. |
| "The reason is that with cable modems, at least in some implementations, users are complaining about poor performance," said analyst Enderle. "As more people in their neighborhood get on the system, they're finding it drops close to modem speeds." |
| Broadband services not only speed up home Net access, but also are "always on" -- in other words, you don't have to dial up a connection. Experts say the "always-on" feature tends to turn the Internet into a constantly used resource, rather than something that's occasionally dipped into. |
| Cable modems use two-way coaxial cables, the same ones that provide cable television, while DSL works over standard phone lines. |
Manolis Diakourakis