TWT CEO Calls for Policies to Promote Ethernet

Larissa Herda, Chairman, CEO and President of Time Warner Telecom (NASDAQ: TWTC) today advocated policies to promote Ethernet availability for American businesses before the House Subcommittee on Telecommunications and the Internet.

“Enterprise customers want the benefits of Ethernet,” Herda said. “They want the flexibility, simplicity and scalability that this technology provides in enabling them to converge their networks and achieve economies of scale and innovation. What DSL did for residential customers, Ethernet does for enterprises. Ethernet is broadband for businesses and with it, they become more efficient and competitive.”
Herda contends that businesses are denied these benefits because incumbents have no incentive to offer Ethernet as it cannibalizes their huge Frame Relay and ATM businesses.
“The only feasible means of increasing the benefits of Ethernet to businesses is for the FCC to prescribe lower wholesale Ethernet prices charged by the large monopoly incumbents so that competitors, like Time Warner Telecom, can offer these services to locations not reached by their networks,” Herda said.