CLECs' resolution: More DSL

As the year rolls to a close, competitive local exchange carriers that are focused on data and, in particular, digital subscriber line, are broadening their horizons.

Last week, San Francisco-based NorthPoint Communications said it would extend its DSL services from 10 markets to 25 by the third quarter of 1999. The expansion of service will mean it could provide DSL service to more business customers than all the regional Bell operating companies combined, said John Stormer, vice president of marketing for NorthPoint.

"We will be covering 40% of businesses and 20% of all households in the country," he said.

The expansion also could mean NorthPoint is looking at the residential market as well, said Jilani Zeribi, a research analyst with Current Analysis. "That would make them more of a threat to RBOC deployments," he said.

NorthPoint offers symmetrical DSL because it doesn't want to presuppose what services its customers want, Stormer said. "If they wanted to host a Web site or use videoconferencing, they couldn't do that with [asymmetrical] DSL."

Zeribi was not surprised by last week's announcement. "They've been extremely aggressive in 1998. It only makes sense they'd continue to be aggressive in '99."

Rhythms NetConnections, a data CLEC based in Englewood, Colo., also announced plans to expand into 35 markets by the end of 1999. It exceeded its plans this year by rolling out service in 11 markets, which was three more than was expected.