Date: Sat, 6 Jun 1998 23:45:26 -0700 (PDT) From: Michael Dillon <michael@memra.com> To: inet-access@earth.com Cc: linuxisp@friendly.jeffnet.org, freebsd-isp@FreeBSD.ORG, iap@vma.cc.nd.edu Subject: Re: US West and RADSL (fwd) Message-ID: <Pine.BSI.3.93.980606233233.13151K-100000@sidhe.memra.com> In-Reply-To: <Pine.LNX.3.91.980606183913.22709A-100000@hypermall.com>
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On Sat, 6 Jun 1998, Jawaid Bazyar wrote: > 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. Really? I know of an ISP in a market of population 17,000 that has a waiting list of 80 customers that want ADSL to the home. The monthly rate they are charging works out to US$40. Right now they are hooking up small business customers with ADSL which is why there is a waiting list for the consumer service. When you look at the monthly rate that people will pay for cable TV service, I don't think it will be that hard to sell a lot of "always-on" Internet connections. ADSL is sometimes a bit faster than a modem link for regular browsing but not that much unless you run a proxy cache; then it will speed up significantly. But the always-on capability means that people can have ICQ running all the time or run a personal webserver etc. > Whereas a lot of people are complaining that US West providing this > service is BAD for ISPs. US West providing the service is good for ISPs. US West blocking anyone else's access to copper so they can run a competing service is bad for ISPs. Substitute your local ILEC for US West if you are elsewhere. > > 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. Yup. And your mileage might vary if you revise your strategic plan and look at the business case from a different angle. The market for Internet access is growing and will continue to grow for many more years. Somebody is going to be providing DSL to 90%+ of the homes in your city one day and you might as well try to get a chunk of that business. After all, who has the better expertise to do this than the ISPs who have been providing Internet access for the past four years. All you need is the capital to expand so that you can afford to wait 3 to 5 years for break even. 3 years ago the future was a lot murkier than it is today and that means it is time to shop for investment capital. -- Michael Dillon - Internet & ISP Consulting Memra Communications Inc. - E-mail: michael@memra.com http://www.memra.com - *check out the new name & new website* To Unsubscribe: send mail to majordomo@FreeBSD.org with "unsubscribe freebsd-isp" in the body of the message
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