DSL is hot: U S West customers respond enthusiastically

Just over a month after launching commercial digital subscriber line services as the high-speed Internet access pipe to Phoenix consumers, customer demand has exceeded its expectations by 200%, U S West officials said.

"We are reviewing hundreds of orders on the [residential] subscriber side, dozens of business subscribers, and seven or eight Internet service providers," said Greg Gum, executive director of U S West's MegaBit Services. "And for U S West.net, we've had between 600 and 1000 requests. And that's all in just one market, so we feel pretty good."

The response is due to several marketing and advertising strategies devised to target each demographic segment of Phoenix, Gum said. The 500,000 consumer access lines inthe metropolitan area include high-end customers in upscale Scottsdale, booming downtown Phoenix, and Mesa, which is largely middle- and low-income residential, he said.

Advertising included some direct mailings and print advertisements ensuring customers "less time waiting, more time working, surfing or action-gaming. Now the promise of the Internet is reality. Call today for Internet connections...at MegaBit's blazing speeds." U S West has offered demonstrations of the services at public kiosks in places like the city science museum.

"We're also looking to go into malls and other public places," Gum said. "Letting people see and touch the technology makes it less of a mystery, especially for residential consumers."

The carrier invited about 200 of its primary business subscribers to a seminar at the city convention center. That meeting also drew representatives from local hospitals, health organizations, and state and local government offices.

"Phoenix has a fast-growing high-tech economy, and customers are looking to take advantage of affordable, high-speed Internet and corporate network access," said Joe Zell, president of U S West !nterprise Networking.

The main factor in the DSL service's widespread success is its simultaneous release with U S West.net, which offers Internet features and dial-up speeds up to 56 kb/s. Users who do not have access to MegaBit Services may sign up for this alternative. The carrier plans to migrate them to MegaBit Services as a digital loop carrier solution becomes available.

"MegaBit and U S West.net provide ubiquitous coverage," Gum said. "With the two together, there is no one who cannot get high-speed access." Deployment is on schedule as well, he said.

"We're bringing an additional 18 central offices in the Phoenix area on-line by the end of the year," Gum said. "And we're adding Tucson, so that by the first quarter of 1998 we'll be available to the entire metro area of Phoenix and Tucson."

"It sounds like there really is demand," said Beth Gage, senior broadband consultant for TeleChoice. "It doesn't surprise me."

Others say the initial success does not indicate DSL's superiority to cable modems. A white paper by @Home Network says high-speed cable Internet services are proven commercial products that deliver high performance, reliable service and great value.

"DSL has fundamental technology limitations relative to HFC/cable modem systems."

In the long term, analysts believe that cable modems vs. DSL is a hot area to watch.

FREQUENT CALLERS BECOME FREQUENT FLYERS USAir and MCI have teamed up to offer five USAir Dividend miles for every dollar customers spend on any MCI service, including long-distance, calling cards, cellular, paging, Internet and a second phone or fax line. Users can earn the mileage credits for up to four years.

ON THE MOVE Elizabeth A. Fetter was named vice president and general manager of U S West Communications' $3.9 billion consumer retail unit. Fetter was previously vice president and general manager of operator and directory services at SBC Telecommunications, where she helped consolidate the operations of Southwestern Bell and Pacific Bell after the two carriers merged.