WHILE many companies are eager to leverage the power of frame relay and asynchronous transfer mode (ATM), they are often daunted by the high cost of setting up their own networks based on these technologies. Total Information Management Corp. (TIM), however, now claims to offer a less expensive alternative by offering subscriptions to its own frame relay/ATM-based value added network (VAN) service, SWIRL--NET.

The first company in the Philippines to be licensed by the National Telecommunications Commission (NTC) as a VAN service provider, TIM has partnered with Canada-based Newbridge Networks in setting up SWIRL--NET. Newbridge is the leading supplier of ATM switches worldwide, based on International Data Corp. figures.

"Companies can now subscribe to SWIRL--NET and achieve economies of scale without sacrificing performance, scalability and reliability," stated Manuel C. Tagaza, TIM's senior vice president for technology services. Apart from subscription to its high-speed VAN, TIM offers a wide range of value-added network services, including network integration or migration and connection to TIM's business recovery centers.

Frame relay is a packet switching protocol for use on wide area networks. Big companies such as Meralco are starting to use frame relay for their networks because of its speed.

"Definitely (our clients) can save at least half the cost of setting up their own networks. This is not even counting the recurring costs of maintaining and managing the network," claimed TIM chair Jose Mari Antunez.

Antunez added that there is no fixed rate for subscriptions, as the cost would vary depending on a company's needs and existing network infrastructure.

Apart from financial savings, subscribing to SWIRL--NET would allow companies to focus on their business instead of worrying about technology, Tagaza said. He added that a core team of five engineers currently handles technical support for SWIRL--NET. TIM plans to expand this team to 15 by year-end.

Though telephone companies generate business from enabling companies to set up VAN services such as virtual private networks, Tagaza emphasized that TIM will "not compete with carriers," but will instead complement their services. He pointed out that the NTC license granted to VAN service providers specifically states that they cannot compete with telephone companies.

Tagaza said TIM is talking with different carriers as suppliers. Since the SWIRL--NET backbone is a hybrid connection, it can accommodate leased lines from different carriers, ensuring interoperability and redundancy. In fact, the SWIRL--NET demonstration held after the press briefing utilized leased lines from three different carriers: PLDT, Globe Telecom and BayanTel.

For this year, TIM is targeting 20 to 30 subscribers. Tagaza stated that TIM aims to leverage its large installed customer base as an IBM and Compaq/Digital carrier, while also noting that many banks already avail of TIM's business recovery services.

Tagaza also stated that by pioneering VAN subscription in the country, TIM hopes to promote convergent technologies among more companies, despite current issues regarding government of these emerging technologies. "We really do not see a problem now with government regulations," Tagaza averred. In fact, he expressed the hope that making these technologies more accessible would allow TIM to help set the direction for future regulations on convergence.