Monday, June 05, 2006

DSL gains momentum

Although major telecoms in the United States are planning significant fiber rollouts this year, it’s interesting to note that DSL continues to gain strength in the market, thanks mainly to a series of convenient strategic alliances.


Yahoo partnered up last year with AT&T (then SBC) to offer consumers discount DSL broadband service. The price point is so attractive (as little as $12.95 monthly for the first year) that AT&T now is able to tout itself as the largest DSL provider in the US. AT&T also provides the DSL service as part of a more general triple-play service package. Verizon also has partnered with Yahoo in offering DSL service.


Just last week, AOL and Covad Communications expanded an existing partnership and announced that consumers can access AOL’s service with Covad's ADSL 6.0 high-speed broadband access product for about $40 monthly. AOL clearly wants to gravitate its dial-up customer base into the new broadband frontier.


"This announcement signals a promising new direction in our longstanding strategic partnership with AOL," said Charles Hoffman, Covad president and CEO in making the announcement. "We view ADSL 6.0 as the first of many innovative Covad products that will help AOL capture consumers' growing interest in moving to broadband."


With demand for broadband continuing to rise, there seems little doubt that DSL has a bright future, both as a bridge technology until high-speed fiber is employed and in its upcoming ADSL version that promises much faster speeds.


Streaming video, online gaming, music and video downloads and other popular applications and creating the growing need for high-speed broadband, industry researchers say. Parks Associates, an industry and consumer research firm, notes that by deploying Covad's ADSL 6.0, AOL is better positioning itself to take advantage of the growing desire for broadband services.


Like the Yahoo service (which now comes in several tiers with different pricing levels), the AOL service features comparatively fast speeds (up to 6Mbps download and up to 768K upstream); plug-and-play installation; and access to customer service by phone, e-mail or instant message.


All well and good, but with broadband installations of all kinds booming in North America, it will be a challenge for DSL to keep up with competition from cable companies, satellite and even BPL, not to mention the impending fiber boom.


Still, with the broadband landscape still


Continued


DSL Service

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