Industrial Background


Increasing Demand For High Speed Internet Access

In recent years, there has been a dramatic increase in demand by business and individual consumers for high-speed access to the Internet and to corporate networks (Intranets). This demand is being driven by the unprecedented growth of Internet content, the number of users, and the increasing number of new concepts, innovations and developments in both telecommunication and computer industries.

Competition Among Service Providers

To meet this demand, the growing number of telecommunication service providers, cable operators, Internet Service Providers (ISP), and new networks providers are increasingly trying to offer both inexpensive and comprehensive broadband services by using combinations of DSL, cable modems, wireless modems, satellite, fiber optic access and other communications technologies.

The reason for the growth of these providers is the telecommunications deregulation in 1996. The deregulation broke the tight control of access loop by a limited number of local exchange carriers in U.S. and in other countries. A direct benefit of this competitive service environment is that the costs of bandwidth began to drop dramatically which, in turn, stimulated Internet growth.

The Emergence Of DSL Services

DSL enables high-speed access service over existing copper lines. Since DSL networks re-use existing telephone networks, they can be less expensive and much easier to install than other competing technologies. Existing companies are taking advantage of the underutilized capacity of existing telephone networks to deliver high-speed Internet connections to businesses and residences.

This strategy maximizes the massive investment that has already been made in copper loops, an infrastructure unlikely to be duplicated by any other competitors.