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Canadian ISP Co-Op Shows Upside of Line Sharing

Posted by ScuttleMonkey on Fri Oct 12, 2007 09:38 PM
from the grass-roots-muni-wifi dept.
Golden Gael writes "The FCC got rid of mandatory line sharing in the US a few years ago, but it's alive and kicking in Canada, and an interesting article at Ars Technica looks at what can happen when there's vibrant broadband competition. 'Wireless Nomad does things a little differently. The company is subscriber-owned, volunteer-run, and open-source friendly. It offers a neutral Internet connection with no bandwidth caps or throttling, and it makes a point of creating wireless access points at the end of each DSL connection that can be used, for free, by the public. Bell Canada this is not.' The ISP has some ambitious plans for the future, including getting involved in WiMAX."

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  • Frustrated with options in the US (Score:5, Insightful)

    by timeOday (582209) on Friday October 12, @09:50PM (#20962887)
    I live in a city of over half a million people. Last night I spent about 40 minutes trying to find out what my broadband options are. Nobody is upfront; it was incredibly difficult to determine even how much each service will cost after the teaser rates expire, especially if you don't want bundled local telephone or cable TV. Next, try to determine what DSL speed you'll get at your house, or what the upstream bandwidth for cable is. You can't. Just lots of stupid marketing fluff and "congratulations! Satellite Internet is available in your area!" type garbage. In the end I gave up, it didn't look like I have any real option besides what I have now - Comcast (which is good but too expensive, especially since I don't really want cable TV any more). I am sick of everybody pretending the free market is at work so everything is great. It isn't.
  • Getting results (Score:5, Interesting)

    by freelance cynic (653710) on Friday October 12, @10:03PM (#20962979)

    Before anyone comes in screaming that this isn't how the "free" market is supposed to work, how bad governement intervention is, etc. etc., let me point out the following:

    In Canada, the biggest telco, by far, Bell Canada, was for a very long time a state sanctioned monopoly and thus recieved tons of public funds to help build its infrastructure (not unlike the situation in the US). Due to this fact, the CRTC (the Canadian equivalent of the FCC, but usually with a clue), forces Bell to allow access to its lines to competitors, as mentionned in the article.

    Results? While the particular company Ars focused on isn't a resounding success (even if it has cool ideas), there's tons of others that are. Example: unlimited, uncapped DSL, which would cost me 45$ with Bell, cost me 28$ with one of its competitors because Bell has to lease them the line for 22$/month (a price point at which they still make a profit, I feel it must be pointed out).

    And it's not just competition on prices and service level, it's customer service too. Anyone that had to deal with a telco before, at one point or another, pretty certainly wanted to go on a shooting spree. The company I deal with? Pick up the phone and someone (in Canada!) will answer, straight away, 24h a day... none of that "please press 1-3-2-6... please wait... we're receiving an unusual volume of call... waiting time is 17 minutes... your call is important to us" bullshit.

    So, basically, go mandatory line-sharing! Anyone wanna bet that it's never going to happen in the States? ;P

  • by compwizrd (166184) on Friday October 12, @10:56PM (#20963237)
    (http://www.compwizrd.com/)
    Bell and Rogers are SLOWLY rolling out WiMax off their Cell towers. They're supposed to have most of the population in Canada covered in the next few years, though I highly doubt that, seeing as they're going to be trying to service areas that still have people stuck on 4-party lines, let alone having Cell towers in the area.
  • Questionable business skills (Score:3, Interesting)

    by IamTheRealMike (537420) on Saturday October 13, @02:53AM (#20964131)
    (http://plan99.net/~mike/)

    These guys are clearly Like Us, and it's to be commended that they rolled up their sleeves and got stuck in. But from reading the article I got the impression they need to sharpen up their business skills a lot. For all the bitching you see about how evil ISPs are on Slashdot, this article demonstrates nicely why they are that way. Some good quotes:

    Then came the first bills. Damien and Wilton found themselves immediately in debt to the wholesaler. The DSL subscribers had an unexpected thirst for data; the Wireless Nomad administrators had not set up their pricing scheme with these kind of numbers on mind.

    No shit they used a lot of data. A small, new ISP run by a couple of guys that's offering unlimited data access for a flat rate? That must have attracted torrent users like bees to honey. They blame video traffic later, but everytime I talk to an ISP employee about where their bandwidth goes, the answer is always "p2p, everything else" in that order. How did they not see this coming? Did they really think existing ISPs impose caps and throttles because they were told to last time they communed with Beazulbub? I won't even comment on using credit cards to pay business costs ....

    First, it's tough. People like brand names, even for ISPs, and they don't trust small providers to stay in business or to solve their tech support problems.
    Stories like this indicate why people might think that way.

    The idea is that a wireless router a few houses down from the main DSL link could relay the signal to another router even further down the block, and so on. If this worked properly, it could reduce the needed number of DSL circuits and could lower prices for all the co-op owners. Unfortunately, this was one of those not-quite-ready-for-primetime ideas, and it failed to live up to expectations ..... [on WiMax] Obviously, throwing open a DSL link to hundreds of simultaneous users invites total meltdown, but Fox suggests keeping the distance down and charging users a few bucks a months for access.

    I like their courage in trying to shake up the ISP market like this, but a cold, realistic assessment of why existing ISPs are the way they are would probably have helped.

  • Wippies (Score:1)

    by jones_supa (887896) <jza@saunalahti.fi> on Saturday October 13, @03:53AM (#20964319)
    In Finland Saunalahti [saunalahti.fi] has to offer somewhat similar deal with their Wippies [wippies.com] project. You cannot get unlimited bandwidth but you get a free ADSL/WLAN box plus a 4GB mailbox. The rules also define you must share your internet connection through the WLAN for the first year. There is also hot spot maps, blogs and other "creative stuff" built around it.
  • by RAMMS+EIN (578166) on Saturday October 13, @06:01AM (#20964721)
    (http://inglorion.net/ | Last Journal: Thursday October 06 2005, @07:17AM)
    ``It offers a neutral Internet connection with no bandwidth caps or throttling, and it makes a point of creating wireless access points at the end of each DSL connection that can be used, for free, by the public.''

    Sounds great for the consumers, but how does the company generate revenue? They will still have to pay the bills.
  • Slimserver? (Score:2)

    by maiden_taiwan (516943) * on Saturday October 13, @08:36AM (#20965367)
    Anybody know how well this box works as a SlimServer [slimdevices.com] MP3 server?
  • Americans are really clueles... Titling the article "sticking it to l'homme" for a Toronto ISP is like calling an Alabama ISP "A fine nigger ISP", given how the english HATE the french.
  • Not Profitable (Score:1)

    by Dopeskills (636230) on Saturday October 13, @10:49AM (#20966311)
    After reading the article, it was clear that Nomad Wireless never broke even and had very little chance of turning a profit. Why should we care about this article? Nomad only has about 100 customers.
  • Re:Must Be Great.... (Score:5, Funny)

    by clsours (1089711) on Friday October 12, @09:51PM (#20962891)
    First the dollar and now this?! Is Canada the new America?
    [ Parent ]
  • Re:free lunch (Score:3, Informative)

    by Arivia (783328) <arivia@gmail.com> on Friday October 12, @10:33PM (#20963151)
    (Last Journal: Saturday June 12 2004, @09:43PM)
    There is a difference between arguments and aphorisms.
    [ Parent ]
    • Re:free lunch by micktaggart (Score:3) Friday October 12, @10:41PM
  • Re:free lunch (Score:3, Interesting)

    Wow. I love knee-jerk ideology. Left or right, it's so devoid of content, and so full of jingoistic jargon. "socialized internet" Jeez. I think it's lovely that you can just apply the word "socialized" to anything and make it an epithet.

    Government is inefficient not because there is something inherently wrong with government per-se, but because it's not held to account and because our electorate is lazy, apathetic, uneducated, and manipulated . TANSTAAFL is a good principle as a personal ethic, but it's incorrect at an economic level. Heck, externalization of resource extraction and waste is a great "Free Lunch" that business has been getting for centuries. This attitude I often hear expressed is just a load of Ayn-Rand readin', chicago-school of business nonsense. Private industry (and I mostly work for banks, mind you) are no more efficient because, contrary to so-called market discipline theories, larger companies are not held to account on any terms but short term quarterly profits. Often, due to asymmetry of information, they are not so held for years. (Enron) Sure they fall, but at great cost to society. And large companies that have near monopolies exhibit exactly the same bureaucratic paralysis as governments, and are, in my experience, often worse, though not always. Certainly the Bells (and their heirs) do. They are usually completely outmoded by small and mid-size profit-making or not-for-profit ventures. Oh, and the ISP from the article? Small member-corporation. (i.e. members are shareholders).

    Nothing wrong with capitalism in moderation, but there's a lot wrong with capitalist ideological demagoguery, just as with socialism. I'm for a complete ban on -isms.
    [ Parent ]
    • Re:free lunch by micktaggart (Score:1) Friday October 12, @11:36PM
  • Re:free lunch (Score:1)

    by conureman (748753) on Friday October 12, @11:24PM (#20963367)
    Pfft.
    [ Parent ]
  • Re:free lunch (Score:1, Flamebait)

    by Soko (17987) on Saturday October 13, @12:06AM (#20963573)
    (http://arstechnica.com/journals/linux.ars)
    There is no such thing as a free lunch,
    Yup

    and there is no such thing as a free internet connection.

    My neighbours WiFi disagrees with you.

    Economies of scale apply as well, and I doubt this model is easily scalable.

    Well, if the government sanctions it...

    Less regulation and more privatization is the way to go, not socialized internet.

    Is it this easy to piss of a Republican? ;-)
    [ Parent ]
  • Re:free lunch (Score:5, Interesting)

    by zzatz (965857) on Saturday October 13, @12:45AM (#20963717)
    Privatization in and of itself does not provide an efficient market. Competition, not private ownership, is what provides the benefits found in modern economies. More often than not, private ownership enables competition. Sometimes it does not, sometimes it stifles competition, and results in an inefficient market.

    Utilities are classic examples of natural monopolies. To be pedantic, this sometimes takes the form of oligarchies rather than pure monopolies, but the drawbacks are the same: the suppression of competition leads to high prices, poor service, and stagnation (lack of innovation). The oligarchs may divide the business by geography, like the railroads, or by type of service. Cable and telcos do both. Cable companies divide the country into exclusive territories, sometimes trade territories, but never battle over the same region. Telcos do the same. You local telco and cable may appear to compete with each other, but it is a very limited competition. They unite against any third party entering the market. They unite to lobby against any requirement to lease lines to real competitors. They unite to throw obstacles in the path of anyone foolish enough to try to run new lines.

    If you look at true free markets, there are usually at least three strong players and several smaller ones. For example, US auto market share 2007 YTD: GM 22%, Toyota 16%, DaimlerChrysler 16%, Ford 15%, Honda 9%, and so forth. Real competition. The same picture emerges for fast food, supermarkets, gasoline, clothing, you name it.

    Where I live, the phone company and the cable company combined have more than 90% of the Internet access market. Third place is down in the statistical noise. People ask whether I use cable or DSL, as if there were only two choices. They can't comprehend that there could be a third choice.

    If there isn't a third choice, there isn't true competition. If the third largest market share isn't at least half the size of the largest, there isn't true competition. We don't have true competition for Internet access in the US. We have an oligarchy which restricts competition.

    Privatization often increases competition. Privatization sometimes replaces one monopoly with another. Privatization is neither good nor bad. Competition is good, and when private enterprise is suppressing competition, then *anything* which increases competition is better. Including regulation, or even government ownership. As bad as government can be, sometimes private business is worse. Government lacks the feedback that competition provides, but provides feedback from voters that businesses lack. Even the DMV is easier to deal with than AT&T.
    [ Parent ]
    • Re:free lunch by Wildclaw (Score:2) Saturday October 13, @03:38AM
    • Re:free lunch by fornax_equilibria (Score:1) Saturday October 13, @04:45PM
  • Re:free lunch (Score:2)

    by NoMaster (142776) on Saturday October 13, @01:06AM (#20963797)
    (http://slashdot.org/ | Last Journal: Tuesday November 07 2006, @05:52AM)
    So, how's that privatized government of yours working out?

    [ Parent ]
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