DSL in bad chape in America

chernobyl

Rhythms Notifies Customers of Service Termination; Reduces Workforce by 700 Employees

<font face="Verdana, Arial" size="2">Quoted from DSLreports:


ENGLEWOOD, Colo., Aug. 10 /PRNewswire/ -- Rhythms NetConnections Inc. (OTC Bulletin Board: RTHMQ - news), a provider of broadband communication services, said today the Company sent 31-day service termination notices to all of its customers last evening. During the next 31 days, Rhythms intends to assist its customers in transitioning their existing digital subscriber line services to alternative broadband providers.

The Company is also reducing its workforce today by approximately 700 employees, or approximately 75 percent of its total workforce. Approximately 85 percent of the affected employees are in Colorado.

About Rhythms

Based in Englewood, Colo., Rhythms NetConnections Inc. (OTC Bulletin Board: RTHMQ - news) provides DSL-based, broadband communication services to businesses and consumers. On August 1, 2001, Rhythms and all of its wholly-owned U.S. subsidiaries voluntarily filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the Southern District of New York. For more information concerning Rhythms, call 1-800-RHYTHMS (1-800-749-8467), or visit the Company's Web site at www.rhythms.com.

Rhythms, Rhythms NetConnections and (any product names for which trademark applications have been filed) are trademarks of Rhythms NetConnections Inc.

The statements contained in these materials which are not historical facts may contain forward-looking statements with respect to events, the occurrence of which involve risks and uncertainties. Such statements are indicated by words or phrases such as ``anticipate,'' ``estimate,'' ``projects,'' ``believes,'' ``intends,'' ``expects'' and similar words and phrases.
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Now im going back to primary school, cuz i cant even spell shape

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Ashley Lyn

Ashley Lyn Cafagna

[This message has been edited by chernobyl (edited 11-08-2001).]

hudson806

Rhythms weren't a very well run company. The were obsessed with Get Big Fast and now it has cost them.

Their focus on customer acquisition at any cost was insane - from single DSLAMS they provided ADSL, SDSL, IDSL & RADSL - difficult to manage, insanely expensive to set up.

Still, with this, pretty much all the big DSL CLECs (OLOs) in the States have now gone under - Northpoint (second biggest and second best) in January, now Rhythms, and Covad (the biggest) still teetering on the brink.

Gladiator

when one goes under it ease presure on the rest, like gateway going under here has eased the presure on dell.

chernobyl

maybe, but were'nt Dell like twicw the size of Gateway.

Cable is the best option in America.

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Ashley Lyn

Ashley Lyn Cafagna

hudson806

<font face="Verdana, Arial" size="2">Originally posted by chernobyl:
DSL infrastructure has to be put in place purely for DSL ( duh ) but two way cable would be there with/without internet access with the advent of digital/interative service.
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Huh? WHat makes DSL good is that almost all the infrastructure is already in place - exchanges, copper lines etc.

Upgrading cable to two-way is a much tougher operation to upgrading exchanges for DSL, and just like with cable, DSL is about more than the Internet - its about providing data services in general. Remember also that one-way digital cable is perfectly feasable too (and much cheaper to implement).


[This message has been edited by hudson806 (edited 12-08-2001).]

chernobyl

What about DSLAMS, Fibre to the exchange, sending engineers to your home, line tests etc etc.

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Ashley Lyn

Ashley Lyn Cafagna

hudson806

<font face="Verdana, Arial" size="2">Originally posted by chernobyl:
What about DSLAMS, Fibre to the exchange, sending engineers to your home, line tests etc etc.

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Access Concentrators are needed for cable as well - at least DSLAMs can be bought off the shelf. Fibre to the exchange is usually there in most countries, Engineers to your home - same as for cable. What about fibre to the Kerb needed for cable? Buying property for access concentrators?

I'm not trying to saya that DSL is 'better' than cable or anything, but the fact is that the biggest single selling point for DSL is that most of the equipment is already there.

chernobyl

But NTL are building a two way network on the already existing network, instead of changing the whole thing to fibre (which would be great) there are going to continue using already laid coaxial.

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Ashley Lyn

Ashley Lyn Cafagna

hudson806

<font face="Verdana, Arial" size="2">Originally posted by chernobyl:
But NTL are building a two way network on the already existing network, instead of changing the whole thing to fibre (which would be great) there are going to continue using already laid coaxial.
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I thought they were building a one-way digital network on their existing co-axial network; thats not broadband - its just a low quality digital TV service.

To build a two-way (ie broadband) network you have to use access concentrators, which pretty much means you have to lay new fibre.

[This message has been edited by hudson806 (edited 12-08-2001).]

[This message has been edited by hudson806 (edited 12-08-2001).]

dahamsta

<font face="Verdana, Arial" size="2">Originally posted by chernobyl:
But NTL are building a two way network on the already existing network, instead of changing the whole thing to fibre (which would be great) there are going to continue using already laid coaxial.</font>

I think that was kind of Hudson's point as well Chernobyl - NTL are building a two-way network, whereas Eircom and by rights the OLO's already have one, and they also have a substantial amount of fibre going to the larger exchanges. Two-way, ready to go. Put a DSLAM on one end and a DSL modem on the other, and Robert's your fathers brother.

Of course there's going to be problems with scale and there's no doubt that a good portion of the copper network is simply not suitable for DSL, but there's plenty that is. I have no doubt that Eircom could install DSL for me tomorrow. Chorus couldn't [supply me with a broadband solution].

adam

[This message has been edited by dahamsta (edited 12-08-2001).]

hudson806

<font face="Verdana, Arial" size="2">Originally posted by Gladiator:
when one goes under it ease presure on the rest, like gateway going under here has eased the presure on dell. </font>

Hehe: There's nobody left in the CLEC(~OLO) DSL market now apart from Covad, and they're going downhill fast. Besides, their service charge for 384k SDSL is about USD70/month. Add on the line rental and ISP charge and its a little expensive for home use...

Doesn't bode too well for OLO-provided DSL service here, does it?

Cherynobyl may be right: cable is rapidly becoming the best way to access the Internet in the US, although I'd be more inclined to give a Baby Bell DSL service a shot before going to cable - when it works, its quite good (but when it doesn't it's hell )


[This message has been edited by hudson806 (edited 12-08-2001).]

chernobyl

DSL infrastructure has to be put in place purely for DSL ( duh ) but two way cable would be there with/without internet access with the advent of digital/interative service.

DSL is an expensive was to supply fast net access, i would much prefer to see chorus whipping Eircoms a$$ in the highspeed stakes, i believe they can evenly compete in the same areas and chorus can offer a TV service.

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Ashley Lyn

Ashley Lyn Cafagna

Gladiator

Yes ntl are provideing a one way digital service, they talk about offering two way i nhigh demand areas, but refuse to say when or even were they will be

tHE vAGGABOND

DSL companies went tit's up at a fare rate in California too. Not just small operations either..

Even over there the market is only so big, so there is not enough money for 213312113 to all make a profit.

That wont happen here are there is not enough people here for it to be profitable for more than 2 or 3 companies, and even then that would the extreme

Nietzschean

when one goes under it ease presure on the rest, like gateway going under here has eased the presure on dell.

dell never had any pressure the company's emf 3 facility is still running with most lines on a 5 day backlog...completely designed for utmost effency...they have moved both Emf1's and Emf2's manufacturing lines into emf 3 and will shortly be running at max production this is about 10/15 thousand units a day.......and with major work on going in line one does it sound like a company under pressure? profit warnings n such arn't alot...the land the bought to go with emf 3 cost em 40 million....and if ye are spending that on the land..such capital expenditure is bound to eat into profits...but looking round dell's emf facility if they r under any pressure the workers/production don't know about it cause 5 day backlog in there is alot.....