Microsoft takes the plunge into ADSL waters with GTE >BY Beth Snyder, Associate Editor-News

After a successful asymmetrical digital subscriber line trial in Texas, GTE officials are now convinced the technology works. Last week, the largest Independent showed off its recently acquired confidence in ADSL by welcoming a heavy-hitting partner-Microsoft-to a new trial in Redmond, Wash.

In the first phase of the GTE/Microsoft trial, 20 Microsoft employees and 20 GTE employees will test the ADSL modems for high-speed access to the Internet and private data networks using Microsoft's Windows NT-based servers.

In the second phase starting in October, 60 more customers and businesses will be added, including the University of Washington and people with specific work-at-home applications.

For Microsoft, this is its first involvement in ADSL. For GTE, it's a confident step forward in the company's ADSL plan. GTE is the first major local exchange carrier to roll out a second data trial.

"GTE is really the most aggressive major LEC with ADSL. It sees [ADSL] as a key part of its future," said Kieran Taylor, broadband consultant for TeleChoice, Verona, N.J. "With this trial, GTE will be able to investigate the finer points of what it will take to deploy ADSL on a wide scale."

GTE's first trial was with about 20 employees in Irving, Texas. Flynn Nogueira, manager of GTE's ADSL program, labeled the trial the "Irving Proof of Concept," offering conclusive evidence that ADSL works.

"The choice of Redmond as the next site to expand the trial from Dallas reflects the confidence they have in the technology," said Tim Burke, analyst with The Yankee Group in Boston. GTE's confidence is also reflected in its choice to include Microsoft, automatically elevating the trial's visibility, he said.

Microsoft's participation adds more than the credibility and prominence of a big name. Both GTE and Microsoft get experience using software and servers with ADSL. Microsoft also gets another chance to push bandwidth-rich technology. Microsoft already offers customers help getting an ISDN line on its Web site and has deals with TCI and Viacom on the cable and hybrid fiber/coax side of bandwidth demand.

"Microsoft would like to help the adoption of these technologies-whether it's ADSL, ISDN or cable modems. What does Microsoft really care about which one the telcos use?" said Vern Mackall, senior analyst with Northern Business Information, New York City.

Craig Mundie, senior vice president of Microsoft and head of the consumer platforms division, echoed Mackall, saying Microsoft is simply searching for a cost-effective way to get high-speed access to residential and business customers. "Our software is agnostic," he said.

TeleChoice's Taylor said that GTE is planning at least five more trials before the end of the year. For the first time, GTE also revealed a tentative timetable. If trials continue to go well, service may be offered in select markets by the first half of 1997.

The new trial is scheduled to last six months and will use GTE Internet Solutions as the Internet service provider.