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Issue #2003 - 18 (June 2003)
(Updated June 4, 2003)


BellSouth, SBC & Verizon Announce Accord on New High-Speed Networks

BellSouth, SBC Communications and Verizon announced recently that they have adopted a set of common technical requirements for fiber to the premises (FTTP).

FTTP, whether to the curb or to the building, will provide a platform to support a number of emerging and evolving applications, such as interactive gaming, photo sharing, PC backup and telecommuting, along with video conferencing, premises surveillance and other video services, which could be delivered on demand and in high definition, the companies said. The use of common technical requirements, based on existing technical standards, will enable equipment manufacturers to more cost-effectively develop and build FTTP equipment for BellSouth, SBC Communications, Verizon and other service providers.

The companies said that they have issued a letter to telecom equipment manufacturers, alerting them that the providers will soon be seeking proposals for equipment based on the common requirements. According to a market researcher at the Yankee Group, deploying FTTP could be "the most fundamental enhancement to telecommunications since wireless networks were built." Critics said that the announcement was a move by the companies to get the attention of the FCC as the commission drafts rules lifting the requirement that the companies offer rivals discounted access to their broadband networks. The critics say that the companies are not in financial shape to spend tens of billions to bring fiber to 100 million U.S. households. Qwest Communications did not participate in the deal because, in its opinion, building a fiber network to the home is not economically feasible. 

Source: Via CTIA News - (Other sources: AP, Boston Globe, USA TODAY, Washington Post, CNET News.com) 

MobileInfo Comments and Advisory: FTTP is a competitive technology standard where wireless local loop (WLL) may offer alternative solution. Fiber may be more reliable and hay have higher capacity. However, WLL offers more portability and is easier to install.  At this stage, business case for fiber to premises may not be very strong. But establishing standards and technical specifications is a good idea. 

Note: This news release may contain forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of Securities Exchange act of 1934 in USA. Similar provisions exist in other countries. There is no assurance that the stipulated plans of vendors will be implemented. MobileInfo does not warrant the authenticity of the information. Readers should take appropriate caution in developing plans utilizing these products, services and technology architectures.  All trademarks used in this summary are the property of their respective owners.

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