[12139] in Commercialization & Privatization of the Internet

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MCI's own views of ATM

daemon@ATHENA.MIT.EDU (Gordon Cook)
Sat May 7 04:07:34 1994

From: cook@path.net (Gordon Cook)
Date: Sat, 7 May 1994 05:25:52 GMT
To: com-priv@psi.com

Begin MCI PR statement:

On December 20, 1993, Communications Week published a front-page article
entitled "Users Want Data Details From MCI".  This article criticized MCI for
not publicly disclosing detailed plans for ATM service offerings.

Communications Week extensively quoted Paul Weichselbaum, MCI's vice president
of data marketing, along with many telecommunications managers from a variety
of
companies.  Mr. Weichselbaum has written to Communications Week regarding
their
news coverage.  His letter to the editor seeks to place his comments in the
appropriate context and accurately explain MCI's approach to ATM. The complete
text of the Communications Week article and MCI's response is included below.


END MCI PR Statement.


Begin some excerpts from the com week dec 20 article

  "I just wish I knew what its data strategy is," said Thomas O'Toole,
director
of communications systems for Westinghouse Electric Corp., Pittsburgh. "MCI
always, for some reason, has struggled with a data strategy."

  In briefings delivered several times during the year, MCI has glossed over
its
plans to offer asynchronous transfer mode services. MCI officials have said
the
company will provide ATM services, but they have given no details on prices,
operating speeds, network management capabilities, switching platform or
classes
of service. That kind of information is already available from AT&T, Sprint
and
WilTel-MCI's main competitors.

  "We clearly have a different approach," said Paul Weichselbaum, MCI's vice
president of data marketing. 

  In May, Weichselbaum said that by the end of this year, MCI would select an
ATM switch vendor, begin field trials and provide service details
(Communications Week, May 31). It is clear that MCI will not meet those goals.

  MCI now expects to select its ATM switch vendor during the first half of
next
year and roll out a service late next year, Weichselbaum said in an interview
with Communications Week. He would not discuss service characteristics or say
when such information would be available.

  Weichselbaum explained the delay by saying that MCI has tested ATM switches,
but found that they did not measure up to its expectations.  

**[Gordon Cook -  gee is the man saying that he doesn't think the NT magellan
switchs are good but that if NSF is willing to pay big money in a non penalty
cooperative agreement, he take the money?]**

[later in the same article:]

  "We don't mind being a test pilot, but if it's a matter of getting into an
airplane that's never been made before, we're a little shy about that," said
Marshall of Bear, Stearns.

  MFS Datanet Inc., Sprint and WilTel already  offer ATM-based services. AT&T
has detailed its service, which will be available in mid-1994. 

  "There's no compelling application that absolutely requires ATM today,"
Weichselbaum said. "We don't want to do it because everyone else is doing it."

end excerpts from com week story

Then in a letter to the editor of communications week weichselbaum wrote:

With first generation switch technology only a pale imitation of what ATM
could
be and the market still immature, we are taking the time to try to influence
second generation technological changes to our customers' advantage.

  
    We believe we can enter the market with a much richer ATM service well
before it gains much momentum and the longer we can wait before making this
investment, the more likely it is that a particular vendor of ATM technology
will have something better to offer than we've seen to date. 
. . . .

And we are certainly telling customers what our ATM directions
are and how these fit with our overall data plans.  However, to date we've
chosen to do this in private customer briefings. These briefings serve to
validate our current conclusions on ATM services while enabling us to protect
competitive advantages we gain as a result of those discussions. 
     MCI clearly does have a different approach to ATM.  We believe it's a
methodical, realistic, customer-oriented and responsible one.  It reflects the
market window available to us as well as the technology cycles we're seeing
and
shaping. The feedback from our customers has been both positive and
constructive.  It's unfortunate that our rationale for pursuing this different
strategy was not fully represented in the story.

Paul J. Weichselbaum
Vice President
Data Marketing

[Gordon Cook:  why with a major proposal in front of NSF would MCI keep its
plane hidden under non - disclosure??

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