Date: Sat, 6 Jun 1998 18:45:32 -0600 (MDT) From: Jawaid Bazyar <bazyar@hypermall.com> To: inet-access@earth.com Cc: inet-access@earth.com, linuxisp@friendly.jeffnet.org, freebsd-isp@FreeBSD.ORG, iap@vma.cc.nd.edu Subject: Re: US West and RADSL (fwd) Message-ID: <Pine.LNX.3.91.980606183913.22709A-100000@hypermall.com> In-Reply-To: <Pine.BSI.3.93.980606162546.13151F-100000@sidhe.memra.com>
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On Sat, 6 Jun 1998, Michael Dillon wrote: > Wait a sec. What if the customer is paying $120/month for that circuit on > a 3 year contract? The $2k port cost is paid for in just under 18 months > and the next 18 months is profitable. Now what if you are buying 100 of > these Pairgain type thingies? I think most ISPs could negotiate some sort > of discount based on that quantity. Ahh, well the assumption I was making was for "consumer" service. That market just won't respond to $120/mo. Much of it doesn't want to pay the $40/mo US West wants for a DSL-enabled line. I went through the business case, and in sufficient quantity I can actually amortize the CO-end DSL equipment at $15/month/port over 3 years. But that's just the equipment - not the interconnects. > > Alright, the Denver metro area as an example has approximately 30 central > > offices. Instantly, in order to reach the whole potential customer base, > > you're looking at $300,000. Just in equipment. > > Sounds like a job for your local neighborhood bank. They love to finance > equipment purchases by established profitable companies with a steady > growth curve and a stable customer base. Anyone that can talk a bank into that, I will give them nothing but encouragement. > In some cities you may be able to tie together the COs with your own RADSL > circuits. http://www.westell.com/products.html That would be interesting. > Depends on a lot of things including the DSL gear that you use. HDSL works > on less lines than ADSL and CAP modulation works on more lines than DMT > modulation. It also depends on the copper plant. Some cities are better > than others. Right. My point is that US West providing this service is GOOD for ISPs, especially small ones, because it enables them to provide a service they simply couldn't otherwise. Whereas a lot of people are complaining that US West providing this service is BAD for ISPs. > You are making a lot of assumptions about the business model here that I > don't think are justified. Well, the assumptions I used are valid in the Denver market. :) YMMV. > Yes it is true that you can't fling ADSL at the > customer base and expect enough of it to stick. You need to plan carefully > and for smaller ISPs it will not be possible to do anything other than be > a DSL-enabled ISP of one of the LECs. But some people will be able to make > a business case for supplying DSL service from just one CO. That's very true, and there's nothing stopping anyone from doing that as far as I know. -- Jawaid Bazyar | Affordable WWW & Internet Solutions Interlink Advertising Svcs | for Small Business bazyar@hypermall.com | 910 16th Street, #1220 (303) 228-0070 --The Future is Now!-- | Denver, CO 80202 (303) 789-4197 fax To Unsubscribe: send mail to majordomo@FreeBSD.org with "unsubscribe freebsd-isp" in the body of the message
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