San Jose-based MFS Datanet, a subsidiary of MFS Communications Co Inc, Chicago has implemented what it claims is the world’s first fully operational national Asynchronous Transfer Mode network (CI No 2,227). The 14-city network connects Atlanta, Baltimore, Boston, Chicago, Dallas, Houston, Los Angeles, Minneapolis, New York, Northern New Jersey, Philadelphia, Pittsburgh, San Francisco and Washington DC. The company gives a guideline price of $8,000 per site per month for 45Mbps links within a metropolitan area. For users connecting between metropolitan areas, pricing varies depending on requirements. However, Datanet estimates that local network interconnect services via the T3-speed (45Mbps) Asynchronous Transfer Mode network would average one-eighth to one-sixth the cost of ordering high-speed lines from local and long-distance carriers and investing in T3 equipment. It points to the significant cost advantages of having to deal with only one company end-to-end as opposed to the minimum four vendors (two local loop providers, one long-distance carrier and at least one equipment provider) currently required. The company estimates that a traditional T3 line between Los Angeles and New York costs $125,000 per month. The company also says that as Ethernet, for example, can be aggregated into and passed over Asynchronous Transfer Mode, users can get the capabilities of the newest technologies without having to make a capital outlay. MFS Datanet’s move is seen as a breakthrough for Asynchronous Transfer insofar as it has overcome the lack of interconnection among network ‘islands’ that have stalled previous wide area technologies like ISDN. However, there is a feeling among industry commentators that there are few local Asynchronous Transfer networks needing to link across the wide area at this time.

Bear, Stearns

MFS Datanet concedes that the market is underdeveloped, but expects its lead will alter that. Despite this, some pioneering companies with high-bandwidth applications are being attracted to MFS Datanet’s offering. New York broker Bear, Stearns & Co is developing an Asynchronous Transfer Mode application on its premises and will be the first customer to hand MFS Datanet Asynchronous Transfer cells for nationwide distribution. MFS Datanet says that it plans a further roll-out of its Asynchronous network in the coming months.