|
@Link
, originally named Dakota Systems, has hooked
up 1,000 central offices (COs) in 44 mostly midwestern cities.
They have their own ATM backbone, to deliver VPNs and other services
to business. (3/15/01)
Allegiance
is a large independent telephone company that has several times
made announcements of direct DSL services but still was just a reseller
in Q1 2001. They serve a large base of businesses in many major
cities. (3/15/01)
Alltel is a regional telco with 15,000 DSL subscribers in early
2001. (3/15/01)
Ameritech
was an early leader among the Bells in testing DSL, but the deployment
had been very slow pending the acquisition by SBC. SBC made some
strong commitments when they took over, including delivering DSL
to 80% by 2002 (Project Pronto), and a high speed connection to
everyone in the few years thereafter. Unfortunately, they are not
delivering on that promise, as of Q1 2001. Project Pronto is on
virtual hold, for technical and financial reasons, and has officially
been moved back a year. We are disappointed that that SBC hasn't
lived up to our prediction, that they would move rapidly to rapidly
to light the territory and serve the entire population with broadband.
They offer both consumer and business service. (3/15/01)
AT&T
has ambitious plans for DSL, nearly none of which have been
realized by early 2001. To date, they are a minor reseller (primarily
Covad), but CEO Armstrong has told Wall Street that after the spinoff
of the cable division into AT&T Broadband, DSL will be their
primary consumer offering for the fast Internet. Their own fiber
backbone, along with the facilities obtained with the IBM Global
Network, give them enormous capacity, while their acquisition of
MFS gives them co-located facilities throughout many metropolitan
areas. By the end of 2001, they intend to offer broadband and telephony
to 95% of America, using cable, DSL, wireless, and satellite where
appropriate. They plan 1200 COs of DSL by the middle of 2000, both
their own and resold. (3/15/01)
Bell
South intends to grow subscribers from 200K at the beginning
of 2001 to 600K at yearend, most through their own ISP. Consumer
pricing is generally $40. They are starting to roll out business
services as well, and have committed to finding a solution for customers
who cannot be serviced because of Digital Loop Carriers, the fiber
to the neighborhood boxes that are used to service many of their
residents. (3/15/01)
Broadwing/Cincinnati
Bell features Zoom, ADSL service with special features designed
for ease of use and community building. They aim to make Cincinnati
“Zoom City”, using advanced telecom services to help the city grow,
and have announced a deal with Intertainer to be the first to offer
Video on Demand. (3/15/01)
Choice One,
has installed 130 COs in upstate NY and is expanding to PA. Started
as a regional phone provider, their service is for business and
emphasizes voice. (3/15/01)
Covad is
the largest national wholesaler, and also sells direct to businesses.
They've had shaky financial going, but by and large have delivered
much better service than the Bells. Pricing varies depending upon
which ISP you sign up with, and they offer consumer level service
as well, at $50-60. Originally, consumer was planned as a major
service, but from early 2000 to the time of this item, the emphasis
is strongly on business. (3/15/01)
DSL.net is based
in New Haven, Connecticut and is building nationally in smaller
cities. (500 locations) They are licensed in 50 states, and plan
to be the first in midsize cities around the nation. They are also
aggressive resellers in selected major cities, and offering services
beyond just connectivity, including ADP payroll and accounting.
They exclusively sell to business.(3/15/01)
IP
Communications is rapidly wiring
Texas, emphasizing smaller cites like Lubbock, Brownsville, and
Waco. They intend to add Oklahoma, Kansas, and Missouri later this
year, and ultimately to expand towards Chicago and California. Their
plan is to be an alternative to SBC, offering service to businesses.Currently,
their subscriber base is so small they don't release figures. (3/15/01)
Log
On America is installing
Nortel equipment in Providence, RI and in Maine, planning to grow
regionally. They emphasize telephony and consumer as well as business
service.
MCI/UUNet/Worldcom
is a giant being coy about their plans, but their business service
with Service Level Guarantees is a strong choice for many. They
announced in 1998 they would offer consumer service, with few details,
and have not yet elaborated. UUNet was one of the true pioneers
of the internet, and they remain one of the leading vendors of dedicated
internet lines. They've also made a deal with Rhythms to sell 100,000
lines. Their public announcements are ambitious, but have few details.
They offer DSL from 1500 COs, but most belong to Rhythms and others
they resell. They keep promising something big, but we've already
been waiting for years. (3/15/01)
NAS (Network
Access Systems) is
targeting direct sales to businesses from 400 offices on the East
Coast. (03/15/01)
New
Edge Networks has announced they will offer service in 50 states
to smaller cities, and is the best choice for business service in
many of the small towns they have equipment in. (3/15/01)
Northpoint
fell into bankruptcy after their deal with Verizon fell through,
with results expected shortly. They have done a good job of servicing
customers despite their financial problems. (3/15/01)
Qwest/US
West was the early leader among the telcos in DSL, with 30,000
customers when most of the other large firms had fewer than 10,000.
They have 40,000 VDSL (very high rate DSL) subscribers in Phoenix,
the most advanced deployment in the world. They are about to add
Video on Demand from Intertainer. They've chosen not to deploy DSL
to smaller cites (except state capitals), and have not decided whether
to expand VDSL, as the company considers worldwide investment. (03/15/01)
Rhythms,
in Denver, is one of three main national data CLECs, promising
a high quality of service to business customers, and servicing individuals
as well (mostly through Telocity and MSN.) They have investments
from MCI and Microsoft, and are opening facilities in most
major cities. Consumer service is available through numerous resellers,
including MSN and DSLnetworks. (3/15/01)
SBC/Pac
Bell/SNET is the largest provider in the US (770,000 at the
end of 2000) but is falling considerably short of their grand plans
for quality and subscribers. Folks in the midwest and smaller towns
are particularly disappointed, because they are not close to their
2002 goal of serving 80% through Project Pronto. (They will be at
least a year late.) Their price rise to $50 is totally unjustified,
demonstrating the dangers of market dominance without regulation.
We choose them as company of the year in early 2000 - we hope they
turn things around to earn such kudos again. (3/15/01)
Sprint
will have one of the largest DSL networks (2000 offices) by the
end of 2001, if the company remains independent and ontrack. Until
then, they are moving slowly, city by city, but their ION product
will be one of the most attractive consumer choices if they deliver
on their plans. (3/15/01)
Verizon
is offering DSL to about half their customers, after slowing the
rollout in the GTE areas and to the 20% of customers served through
DLC remote terminals. They had 540,000 subscribers at yearend 2000,
with plans for 700K more in 2001. You can get service directly from
Verizon's own ISP, or through Earthlink, Telocity, and other resellers.
Service quality has been an enormous burden for Verizon, with many
"DSL Hell" stories. We hope they will become fewer in
the future. Business service is aggressively priced, but still facing
operational challenges. Look soon for symmetric service for business
under $100. Residential service is at $40 as we write - we
hope they don't follow SBC's increase. Ask them why their primary
service isn’t 1.5Mup/384Kdown, matching the speeds of SBC &
BellSouth’s basic service at a similar price.(3/15/01)
Alternative services
Several companies offer service that is very similar to DSL, although they don’t use telephone wires. Cable companies also offer a choice for many consumers. RCN is running fiber in many neighborhoods that will offer phones, cable TV, and
internet connections on a building by building basis. Their engineering and network plans are among the most advanced in the industry, but the field performance must be proven. Teligent offers wireless service, requiring an antenna, usually on your roof. It's a
choice if no one else services your building. AT&T has purchased a 41% interest. Resellers
Many folks purchase DSL through an ISP (Independent Service Provider),
rather than from the provider directly. There are over 1,000 resellers
in the US. Here are a few of the larger ones.
For Consumers:
About 3/4 of the consumers in the US get their DSL directly from
the four telcos, whose service has been disappointing. Generally,
folks who have gone with Earthlink, Telocity, or other independents
have gotten better performance and service - though not nearly as
good as it should be. If you need serious reliability, consider
one of the business-oriented providers below, such as XO/Concentric,
and expect to pay a little more. AOL, MSN, and AT&T will be
offering DSL to their current subsribers, but are moving slowly
and have no track record in this business.
Recommendation: As a consumer, look first to Earthlink or Telocity,
unless you are in Qwest territory. Compare them to your local telco.
AOL's 27M+ members are
one-third of the internet, and AOL knows they will lose them to
others unless they ramp up broadband.They bought Time Warner, the
second largest cable company, and are actively negotiating with
AT&T to serve clients by cable in their territory, too.
They have a $B investment in satellite also. But they will serve
much of the country with DSL, and have deals with Verizon and SBC.
They should offer convenience and a competitive price, but the quality
of your service will be dependent upon the backbone quality they
provide, and their record is dismal. We are closely watching AOL
for major developments. Until they decide their strategy, they are
offering DSL only in very limited territories, and early experience
has not been good. (3/15/01)
Earthlink,
the second largest ISP in the US, has always had a reputation for
friendly service. They are now the largest independent reseller,
and generally have delivered better service than the telcos do directly.
We have an Earthlink line, backed up by Covad, and they've done
a good job. Most new customers, however, will get lines resold from
the Bells..
MSN
the third largest US ISP, had ambitious plans for DSL that have
been delayed by the industry slowdown. Microsoft has invested $30M
in both Northpoint and Rhythms.They are offering DSL to selected
customers and through Radio Shack stores. (3/15/01)
Telocity
is growing rapidly, serving consumers around the nation, offering
static IPs, an advanced gateway of their own design, and near term
plans for voice and video. They were purchased by Hughes/Direct
TV, which itself is owned by General Motors. (3/15/01)
For business:
The consumer-oriented providers above offer business
service as well, usually at an attractive price. AT&T and MCI
also are primarily resellers; we listed them above because they've
announced their own facilities as well.
Megapath is a reseller whose business model is based
on quality customer service and whose six-green rating from DSL
Reports suggests they are delivering. California based. (3/15/01)
Panix is a regional favorite in New York and Boston. They were one of the first ISPs in
the world.
XO/Concentric
is a national internet provider with a strong commitment to quality,
which resells local circuits from Covad and Northpoint. They have
dedicated backbone capacity, a large web hosting service with an
easy to use interface, VPN security, and other services, and offer
Quality of Service guarantees.
|