02/10/97 A LIGHTNING-FAST PHONE LINE--CHEAP

A LIGHTNING-FAST PHONE LINE--CHEAP

NETWORKING STARTUP NetSpeed Inc. is aiming to cut the cost of bringing high-speed communications to the office and home. On Jan. 27, the tiny Austin (Tex.) company will introduce a system that will let up to six customers share a so-called ADSL (asynchronous digital subscriber loop) line. ADSL, which operates at up to 8 megabits per second, is highly reliable because it strips computer data off local phone switches, avoiding busy signals when heavy use from Internet services clogs the voice network.
What's the big deal? Until now, ADSL--which rides on existing phone wires, delivering data at more than 400 times the speed of the fastest modems--has needed a dedicated phone line for each customer. That has made it more expensive for telephone companies to install than rival digital technologies such as ISDN. ISDN, which operates at 128 kilobits per second, costs a phone company just $300 per subscriber to install, compared with $2,000 per line for ADSL. NetSpeed's shared approach, says CEO John F. McHale, can cut the cost per customer to between $200 and $500. U S West Inc. is testing the gear.
By Gary McWilliams
EDITED BY IRA SAGER