Fiber solutions on the rise, GI subsidiary takes expertise to DLC market

Next Level Communications is expanding its product line in both directions from its core fiber-to-the-curb solution.

The General Instrument Corp. subsidiary is moving back toward the central office with a digital loop carrier that can provide asymmetrical digital subscriber line and very high bit rate DSL. It is also moving into end users' homes with four devices that expedite data and video service delivery from fiber to TV sets and computers.

The DLC's development is a natural progression for the company, said Next Level President Pete Keeler.

"The last mile to homes is copper, and the next generation is multiplexing that to T-1 or fiber. The third generation is broadband access systems," he said.

But Keeler said telecom reform has been key to the company's growth in FTTC products, which Nynex is incorporating into its network, as well as its expansion to new businesses.

As telcos gear up to offer Internet and video service, products such as Next Level's will increasingly be in demand.

"To do that, you've got to get more bandwidth to the home," Keeler said. "We're rebuilding that [telephone] network.

But existing DLC vendors aren't leaving high-speed access capability to new market entrants. DSC Communications Corp. and Westell Communications have teamed to add ADSL capability to DSC's Litespan 2000 DLC, and other major DLC vendors surely won't be far behind in adding high-speed transmission functionality to their platforms.

While other companies may be expanding the functionality of their DLCs, Next Level's ground-up development of an ADSL/VDSL-capable DLC gives it an advantage, said Vern Mackall, analyst at IDC Communications, New York.

Next Level does not expect all buyers of its DLC to go for the full high-speed transmission package, although the device is priced economically for voice-only applications, Keeler said. "It justifies itself on telephony revenues, then you incrementally add cards."