SIGNUPABOUTBW_CONTENTSBW_+!DAILY_BRIEFINGSEARCHCONTACT_US


FOR YOU SPEED DEMONS, HERE COMES MORE BANDWIDTH

For most office workers, the Internet has become a vital tool both professionally and personally. With the company computer network tied to the Net via so-called T1 and T3 high-speed connections, screens appear in the blink of an eye. But what if you're at home or on the road with a laptop? Even the fastest modems deliver a Net connection speed of 56-kilobits per second (kbps) -- less than 4% of the speed of a T1 network connection. Now, however, high-speed Net setups are emerging that will let the Net-dependent executive get access that rivals --or bests -- an office connection.

Consider, for example, the @Home system, which uses cable modems and the same wires that deliver cable-TV signals. These modems provide access speeds of up to 52-Mbps --up to 100 times faster than the speediest phone connections. That lets the @Home network offer much richer graphics, including full-motion digital video and audio clips. Richard Gingrad, editor-in-chief of the @Home service, says it makes the Net "much more like the media of TV or very high quality print publications."

For example, @Home's news channel features not only the same news stories from the Associated Press, New York Times, and Dow Jones that are found on sites such as Yahoo! but also the latest digital video news clips from CNN and Bloomberg. When Bill Clinton made his infamous Monica Lewinsky speech on Aug. 17, "we had the entire four minute speech online within minutes," says Gingrad. His @Home members could download in minutes -- instead of hours -- clear, smooth, full-motion video that rivaled that from a news channel. In factk, @Home offers 12 online "channels" ranging from news to sports to finance to games. And because the @Home network doesn't tie up a phone line, subscribers can keep their computer connected for hours without racking up huge expenses.

GOOD FOR THE BOONIES. Other companies are also angling for a shot at being the superfast information conduit away from the office. Hughes Network System -- the company that runs the DirecTV satellite broadcasting system -- recently introduced new software for its DirecPC service that lets subscribers reach the Net via high-speed satellite signals. Although the service isn't as fast as cable modems, at 400-kbps, it is still much faster than any ordinary modem. What's more, since this setup uses wireless satellite signals available across the North American continent, DirecPC is an ideal choice for locations that aren't wired for cable TV and cable modems.

Like @Home, DirecPC has partnerships with content providers. Subscribers, for example, can retrieve and store full-motion clips of coming movies. And just like @Home, the service can be left on for hours without incurring big charges. Since DirecPC "broadcasts" the Net 24-hours a day, a continuously connected computer can scan for and store whatever information its owner requests. For example, executives who need to stay on top of technology developments can set the service to automatically retrieve new messages posted on newsgroups such as alt.computers.

For all the wonders of using the TV infrastructure for high-speed Net access, however, the technology isn't without drawbacks. For one thing, it isn't available everywhere. In the case of @Home, for instance, many cable-TV network systems haven't been upgraded to handle two-way Net traffic: It can only receive information at high speeds, but for a subscriber to send information back to the cable service, they need to dial out using a regular modem. As a result, since its founding in 1995, @Home has grabbed only 147,000 subscribers. DirecPC has netted only 70,000 of the 4.1 million worldwide subscribers to the DirecTV satellite TV service.

However, more local cable-TV services are starting to pick up on the idea of offering their subscribers high-speed access. What's more, network equipment maker 3Com announced last month that new equipment that eliminates the phone-line connection -- and therefore gives true two-way high-speed access -- is now available. But since the equipment is installed at the so-called head end of a cable operator's network, such true two-way, high-speed cable access probably won't become available until sometime next year and most likely in a very few limited cities and areas.

HIGH-SPEED CHARGES. Cost is another inhibiting factor. Prices for @Home and other cable-modem access services vary from $30 to $50 a month. And since Net access via cable TV requires a special modem, a cable-TV representative must install the hardware and configure your PC for the service. That can tack on another $99 to $175. DirecPC also charges about $30 or $50 per month for 25 or 100 hours, respectively, of Net access. And the equipment -- a 21-inch satellite dish, internal satellite modem, software, and documentation -- costs about $299 with a one-time activation charge of $50. A promotion from Hughes waives the activation charge and knocks $100 off equipment costs for those who buy before the end of the year -- though the cost of installing DirecTV may eat away those savings.

While these alternative suppliers promise blazing-fast speeds, telecommunications companies haven't conceded the field. Phone companies and network providers are preparing to roll out a new high-speed access standard called digital subscriber line, or DSL, which will provide data-transmission speeds of up to 8-Mbps. What's more, DSL uses the plain old copper telephone wire that exists in nearly every home today.

DSL -- which come in various flavors such as ADSL (asymetric DSL), HDSL (high data rate), and VDSL (very high data rate) -- is different from most other telecom data-transmission schemes in that data is sent along with the signals for voice and fax calls by using higher frequencies for data. Since both data and voice travel over the same line, a DSL subscriber can surf the Web and talk on the phone at the same time. That means a DSL line could give PCs the same "always on" feature as cable modems and satellites without any extra charges or fees. And unlike cable modems or satellite service, DSL could easily link back to your office computer network -- just like a traditional dial-up modem setup.

Unfortunately, DSL also has some drawbacks. High-frequency DSL signals traveling over plain copper wire degrade over distance. So a DSL subscriber can be no more than three miles from the teleco's regional switching office. Also, since DSL is a fairly new technology, not every phone company is ready to offer it -- yet. Industry analysts say, however, that the regional Bell operating companies are quickly adding DSL equipment to their tens of thousands of switching offices.

Once DSL arrives at a switching office near you, it'll cost you a $100 to $400 monthly charge depending on your local provider and the access speed you want. There's also the matter of special equipment. DSL "adapters" for your home, which split phone signals into data and voice and route them to the appropriate PC or phone, can cost around $700. But DSL is bound to get cheaper. Already, Bell Atlantic is offering a 640-kbps DSL service to homes in Washington, D.C., and Pittsburgh for $59.95 a month.

To many analysts, that's a signal that ubiquitous, fast Net access may be widely available by the turn of the century.

By Paul M. Eng, senior correspondent, Business Week Online



RELATED ITEMS

EXECUTIVE POWER TOOLS
COVER IMAGE: Technology Buying Guide

HANDHELDS
LAPTOPS
DESKTOPS
WIRELESS
CYBERSPACE
BANDWIDTH
TOUGH ENOUGH?
WARRANTIES
TAMING E-MAIL
TRAVEL SITES
CITY GUIDES

SIGNUPABOUTBW_CONTENTSBW_+!DAILY_BRIEFINGSEARCHCONTACT_US


Updated Nov. 5, 1998 by bwwebmaster
Copyright 1998, by The McGraw-Hill Companies Inc. All rights reserved.
Terms of Use