Telcos dispute capacity-shortage claims on DTS-C

Although the Defense Information Systems Agency blamed an 'industry shortage" for AT&T Government Markets' inability to meet schedule and technology requirements for a new domestic communications network rival vendors disagreed. These firms also disputed statements by AT&T that it sought to but co

Although the Defense Information Systems Agency blamed an "industry shortage" for AT&T Government Markets' inability to meet schedule and technology requirements for a new domestic communications network rival vendors disagreed.

These firms also disputed statements by AT&T that it sought to but could not buy the capacity it needed from competitors to meet the schedule for the Defense Information Systems Network Transmission Services-Continental United States (DTS-C) network contract. DTS-C is intended to meet the wideband needs of all three military services well into the next century.

AT&T won the DTS-C contract in January 1997 with turn-on initially scheduled for June. But according to a knowledgeable Pentagon official "By early May AT&T was telling DISA it could not do the job on time." Industry and Pentagon officials attributed this situation to an overall corporate AT&T schedule in which the company will not finish the rollout of high-speed networks based on Synchronous Optical Network (Sonet) technology until late 1998. Sonet networks offer quick restoration of interrupted service.

DISA has now pushed full-scale installation of DTS-C back to June 1998.

AT&T Government Markets president Dick Lombardi who announced his resignation last month said his unit bid the networking proj-ect based on the assumption that its parent company was meeting a tighter schedule. "We received the appropriate levels of approval...and we thought we would have [a] Sonet [network] in place" to meet the terms of the contract.

Executives of competing companies said this statement does not square with comments by DISA and AT&T spokespersons pinning blame for AT&T's failure to perform on an "industry shortage" of Sonet circuits. "I bet that as part of the terms of its settlements with AT&T DISA agreed to blame the industry " said one industry executive who added "I bet it's included in the legal papers."

Sprint which vigorously pursued DTS-C only to lose to AT&T found it ironic that industry at large has been blamed for problems with that contract.

"I lose and it's still my fault " said Bill Brougham director of the Defense program office at Sprint. "But I don't think there is an industry shortage and we are still prepared to help DISA if they call on us."

Was Unrealistic Pricing to Blame?

Unrealistic pricing Brougham said lies at the heart of the DTS-C problems. "It is clear that at the price we bid we could have delivered...and it's clear at the lower price they bid they can't deliver."

Brougham added that Sprint was at least two years ahead of its rivals with the installation of its Sonet network and would soon have even more capacity thanks to the incorporation of multiplexing technology into its Sonet backbone. Brougham also said Sprint stands ready to hold discussions with either AT&T or DISA on how Sprint could use its network to help resolve the problems with DTS-C.

Jim McKenna vice president of government services for Worldcom Inc. said his company does have some Sonet capacity to spare in the Southeastern United States - home to many military bases. But he added that "AT&T could not obtain [Sonet capacity] from us at the rates they bid on DISN."

Diana Gowen director of Defense Department sales and marketing at MCI Government Markets said her firm also could not match AT&T's pricing adding that MCI stands ready to help AT&T and DISA.

One network executive familiar with AT&T's efforts to acquire additional circuits in the market said the capacity that the company sought "was so large as to be laughable. They wanted to acquire 300 DS-3s [each of which is equal to 28 T-1 circuits].... That's just off the wall. We don't have that kind of capacity to spare."

NEXT STORY: Round Two

X
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with our social media, advertising and analytics partners. Learn More / Do Not Sell My Personal Information
Accept Cookies
X
Cookie Preferences Cookie List

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Allow All Cookies

Manage Consent Preferences

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

If you want to opt out of all of our lead reports and lists, please submit a privacy request at our Do Not Sell page.

Save Settings
Cookie Preferences Cookie List

Cookie List

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

Strictly Necessary Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Functional Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Performance Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Social Media Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Targeting Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.