DSL deployment

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DSL gives smaller companies a good alternative to the expense of T-1 or frame relay lines and the lagging speed of 56K bit/sec modems for accessing the Internet and linking remote users to corporate networks. With rates as low as $39.95 per month, DSL is quite attractive. However, you need to be prepared to pay the price of time and frustration that generally accompany the DSL installation process.

While DSL deployment is growing, the industry still faces coverage problems in certain areas and an inability to keep up with demand. Before you rush into ordering the service, consider some of the drawbacks:

Lack of ubiquity. This is primarily an issue for large companies that need to deploy DSL on a regional or national basis. DSL is generally available in metropolitan areas, but if your office or home is in a rural area, you probably won't be able to get DSL. Other high-speed technologies, such as T-1 and ISDN, are more readily accessible in almost any part of the country.

Long installation time frame. Carriers can install an ISDN or T-1 line within three to four weeks, but DSL users are in for waits of about three to four months (if you get service sooner, consider yourself lucky).

Thanks to overwhelming demand and lingering technical difficulties, prepare yourself for a protracted experience. Without a safety net, you risk getting burned.

Market instability. Many ISPs and competitive local exchange carriers (CLEC) such as Flashcom and NorthPoint have gone belly up and suddenly shut off DSL service, leaving their customers scrambling to find replacements. Eager to grab market share, some DSL providers have offered their service for less than it costs to deploy and operate, which can lead to service problems down the line.

Where to buy

In spite of the industry churn, you can still find DSL from a variety of firms, ranging from giant carriers to a local ISP or reseller. Although it seems like you're choosing a single provider, multiple companies need to work together to deliver service. The interaction between these parties is one reason for delay.

The first link is your regional Bell operating company, which owns the copper between your site and the central office. After you order a circuit, the RBOC needs to qualify the line to make sure it can handle a DSL signal. The next player is the CLEC, which maintains the DSL access equipment at the central office. The final link is the ISP, which delivers DSL along with other services.

You'll generally find several DSL flavors and packages to choose from. If you're seeking asymmetric DSL service, in which downstream speeds are faster than upstream, most RBOCs offer several speed and pricing plans. But if your needs go beyond one location for residential or business service, you may need to look to a national provider such as EarthLink, UUNET or XO Communications.

Avoid using multiple companies, DSL flavors and speeds in different parts of the country, as this makes it difficult to benchmark performance of mission-critical applications. The advantages of working with a nationwide company are consistency in price and speed as well as a single point of contact for billing and problem resolution.

Cost considerations

DSL is priced by connection speed. Monthly ADSL service from a national carrier usually hovers around the $40 to $50 range and is well-suited for home use. Symmetric DSL is preferred for business use and costs between $130 and $400 per month depending on speed. Options such as Web hosting, additional IP addresses, or additional e-mail boxes can add to the cost.

Each company involved in the delivery chain needs to make money. The RBOC charges the CLEC for leasing the copper, the CLEC charges the ISP for leasing its DSL ports, and the ISP passes the charges along to customers. The businesses are already working off razor-thin margins, so don't expect to see prices go much lower.

To get an idea of what you might pay, check the graphic to the left.

Shopping tips

As with any service, don't purchase based on price alone.

The provider offering a rock-bottom rate might not be around for long. Only buy from companies with stable business records.

Negotiate a long-term contract if you like the price and the service. Some industry experts think prices may increase in the future as ISPs, RBOCs and CLECs try to profit from DSL.

Count on a three- to four-month installation wait, no matter what the salesperson tells you.

Have a contingency plan in case the DSL you ordered can't be installed. ISDN might make a good backup because it's moving to flat-rate pricing and you can count on getting it installed within one month.

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Dunetz is CTO for Telco Exchange, an online marketplace for high-bandwidth communications services. He can be reached at kevin@telcoexchange.com.

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