Date: Tue, 16 Oct 2001 22:58:25 -0700 From: "Ted Mittelstaedt" <tedm@toybox.placo.com> To: "void" <float@firedrake.org> Cc: "Matt Dillon" <dillon@earth.backplane.com>, <Bsdguru@aol.com>, <hackers@FreeBSD.ORG> Subject: RE: RE: RE: Imagestream WanIC-520 interface cards Message-ID: <001601c156d0$bc3bb360$1401a8c0@tedm.placo.com> In-Reply-To: <20011015172147.A32011@parhelion.firedrake.org>
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>-----Original Message----- >From: void [mailto:float@firedrake.org] >Sent: Monday, October 15, 2001 9:22 AM >To: Ted Mittelstaedt >Cc: Matt Dillon; Bsdguru@aol.com; hackers@FreeBSD.ORG >Subject: Re: RE: RE: Imagestream WanIC-520 interface cards > > >On Sat, Oct 13, 2001 at 10:09:44PM -0700, Ted Mittelstaedt wrote: >> >> In our market, and I swear this is true, we have CLEC's that are selling >> fractional T1's (split voice/data with add-drop DSU's) and they >are charging >> less than $50 a month for 768k or greater feeds. It's competitive >with DSL. >> The customer pays for the voice lines which are maybe $1-$5 >cheaper per trunk >> than what the ILEC would charge, then gets in essense a free Internet feed. >> Now, obviously the CLEC is planning on the company growing and >adding trunks >> onto that T1, because they are making their money off the voice >circuits and >> the call termination payments that the RBOC's are paying them. > >I thought the RBOCs got the call termination payment scheme repealed >when it didn't work out in their favor like they thought it would. >But I can't find a reference, at least I haven't yet. > We have been told by our rep at Time Warner Communications that those payments are still continuing. TW (at least in PDX) does not have enough voice sales to be able to get on that pig trough and is equally unhappy as we are that the RBOC's are propping up what are in effect bankrupt CLECs. I used to have sympathy for the CLECs and their beef that the ILEC's are screwing everyone by not allowing competition. But not any more - in our market the CLEC's charge about 95% of what the ILEC charges for voice services, so the customers gain nothing on the voice side of the house. Instead, the way that the CLEC's get customers is by giving away Internet service for free. In short, the call termination payments fund the Internet service, instead of decreasing the cost of the voice service. Basically, the CLEC's have figured out how to use a poor government regulation that needs changing to put their competition out of business. It's no different than what Microsoft does when they use operating system revenue to fund a variety of unprofitable and destructive ventures into software applications like web browsers, web servers, ecommerce apps, etc. The only saving grace is that most of the CLECS are so ignorant when it comes to networking that their Internet service is so awful that at least the good customers are staying away from them for now. Ted Mittelstaedt tedm@toybox.placo.com Author of: The FreeBSD Corporate Networker's Guide Book website: http://www.freebsd-corp-net-guide.com >-- > Ben > >"An art scene of delight > I created this to be ..." -- Sun Ra > To Unsubscribe: send mail to majordomo@FreeBSD.org with "unsubscribe freebsd-hackers" in the body of the message
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