NetSpeed enters Cisco fold

Last week's acquisition of splitterless digital subscriber line pioneer NetSpeed Inc. by networking giant Cisco Systems should accelerate the technology's use for telecommuting and remote access applications.

Officials at U S West !nterprise Networking, which already is using equipment from both companies, expect the pairing to help accelerate the company's deployment plans by providing an end-to-end DSL solution (see figure).

"All the pieces are [now] there for [Internet protocol] networking, Internet access, telecommuting and remote office access," said NetSpeed CEO John McHale. "If you roll all that together under one management umbrella, you have a seamless one-stop shop for telephone companies worldwide."

The entire NetSpeed product line will be integrated into Cisco's DSL offering, including $199 PCI cards for residential users that will be used with a Lay er 3 router costing $500.

The announcement adds credibility to the notion that DSL technology is poised to go mainstream, said Stephen Elliot, a senior analyst with Newton, Mass.-based Business Research Group.

"It's a smart move by Cisco," said Elliot. "They are looking to hedge their bets on technology investments in areas that may explode in the next few years. DSL is certainly one of those technologies."

Cisco's acquisition of NetSpeed should further drive the acceptance of splitterless DSL already endorsed by Compaq, Intel and Microsoft.

The splitterless capability made NetSpeed a particularly attractive acquisition target, said Enzo Signore, Cisco Systems' DSL product manager. "NetSpeed was on the leading edge of seeing that telcos needed to be able to turn on services without requiring someone from the telephone company to actually go on site," he said.

Although Cisco acquired DSL provider Dagaz in 1997, the NEBS-compliant NetSpeed line is more attractive to the North American market.

Cisco's first task will be to integrate the customer premises equipment products from NetSpeed with the CO products from Dagaz to create a worldwide offering, Signore said.