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A case study in the deployment of digital access technologies : DSL vs. cable modems

IP.com Disclosure Number: IPCOM000128117D
Original Publication Date: 1999-Dec-31
Included in the Prior Art Database: 2005-Sep-14
Document File: 5 page(s) / 18K

Publishing Venue

Software Patent Institute

Related People

Wolfeld, Bruce R.: AUTHOR [+3]

Related Documents

http://theses.mit.edu:80/Dienst/UI/2.0/Describe/0018.mit.theses/1999-72: URL

Abstract

From its start in the early 1900's, the communications business has been a regulated industry with little or no competition. The economic incentives to deploy new technological innovations were often overshadowed by the regulatory environment and a lack of competitive pressures. The 1982 divestiture of AT & T successfully created competition in the long distance market, however the local access market continued to operate as regulated monopoly. As the primary access point between users and the telecommunications network, the local access providers have extracted significant value from the telecommunications market. The Telecommunications Act of 1996 (TA96) was designed to open up the local access market to competition. The incumbent suppliers were required to enable competition by making their assets available to competitors. At the same time, Internet data transport was becoming the dominant telecommunications revenue source and new technologies that offered high-speed Internet access were becoming available. This thesis demonstrates that the three types of competitors defined by TA96 have evolved different strategies for maximizing the value that they can capture from the telecommunications market. By applying a case study for Cable Modems and Digital Subscriber Line (DSL) modems, it is shown that the economic incentives to deploy new technologies are not necessarily aligned with the needs of the telecommunications consumer. Thesis Supervisor: John de Figueiredo Title: Assistant Professor of Strategic Management [-2-]

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 This record is the front matter from a document that appears on a server at MIT and is used through permission from MIT. See http://theses.mit.edu:80/Dienst/UI/2.0/Describe/0018.mit.theses/1999-72 for copyright details and for the full document in image form.

A Case Study in the Deployment of Digital Access Technologies: DSL vs. Cable Modems

by

Bruce R. Wolfeld
Bachelor of Science, Cornell University, 1985 Master of Engineering, Cornell University, 1986 Submitted in partial fulfillment of the requirements for the degree of Master of Science in Management of Technology
MIT Sloan School of Management

at the Massachusetts Institute of Technology

May 1999 [June 1999]
(c) 1999 Bruce Wolfeld. All rights reserved.

The author hereby grants to MIT permission to reproduce and to distribute publicly paper and electronic copies of this thesis document in whole or in part.

SIGNATURE OF author: [[signature omitted]]

MIT Sloan School of Management

May 15, 1999
CERTIFIED BY: [[SIGNATURE OMITTED]]

John de Figueiredo Assistant Professor of Strategic Management Thesis Supervisor ACCEPTED BY: [[SIGNATURE OMITTED]]

David A. Weber Director Management of Technology Program ARCHIVES MASSACHUSETTS INSTITUTE OF TECHNOLOGY LIBRARIES JUN 16 1999

Massachusetts Institute of Technology Page 1 Dec 31, 1999

Page 2 of 5

A case study in the deployment of digital access technologies : DSL vs. cable modems

A Case Study in the Deployment of Digital Access Technologies: DSL vs. Cable Modems

by

Bruce R. Wolfeld

Submitted to the Alfred P. Sloan School of Management and the School of Engineering in Partial Fulfillment of the Requirements for the Degree of Master of Science in Management of Technology

Abstract

From its start in the early 1900's, the communications business has been a regulated industry with little or no competition. The economic incentives to deploy new technological innovations were often overshadowed by the regulatory environment and a lack of competitive pressures. The 1982 divestiture of AT & T successfully created competition in the long distance market, however the local access market continued to operate as regulated monopoly. As the primary access point between users and the telecommunications network, the local access providers have extracted significant value from the telecommunications market. The Telecommunications Act of 1996 (TA96) was designed to open up the local access market to competition. The incumbent suppliers were required to enable competition by making their assets available to competitors. At the same time, Internet data transport was becoming the dominant telecommunications revenue source and new technologies that offered high-speed Internet access were becoming available.

This thesis demonstrates that the three types of competitors defined by TA96 have evolved different strategies for maximizing the value that they can capture from the telecommunications market. By applying a case study for Cable Modems and Digital Subscriber Li...