A DSL Co-op in Your Neighborhood? 318
Steve Hamlin writes "In reading on Slashdot about the
increasing cost of cable broadband (and DSL is no cheaper), I ran across
this article about a neighborhood that put together
a co-op for DSL broadband. From a DSLAM housed in a barn to microwave relays, a frame relay T-1, and problems with Qwest, the whole deal."
Sad state of broadband (Score:3, Informative)
Comment removed (Score:4, Insightful)
Re:Good argument for government intervention... (Score:2, Insightful)
I'm with you fmaxwell, governments should invest in broadband as they do other types of infrastructure (roads, bridges, dams), because that's what broadband amounts to these days.
All politics aside, government contracts to build infrastructure aided public optimism that the Great Depression would end in the 1930's. Perhaps this country could use some extra jobs, paid for by Uncle Sam, right now. The people who get the jobs benefit, and the people who get the access benefit. To me, that's worth a few tax dollars.
Re:Good argument for government intervention... (Score:3, Interesting)
The free market IS solving the problem (see the article that spawned this thread) when it is permited to do so.
The problem here stems from monopolies propped up by the government in the first place, leaving you with no legal alternatives. In fact, about the only thing that justifies government regulation to any extent (and not enough, in my book), is the existance of a government-enforced monopoly.
Of course, if you seek government "regulation", to provide taxpayer funded subsidies for your net-access, then I say MOVE!
Re:Good argument for government intervention... (Score:4, Interesting)
The most fascinating thing about some radical libertarians is their consistency. The big, gaping piece left out of the above argument about government regulation and monopolies is any comment on how or why we might have some government-sanctioned monopolies in the first place. We have them because there was a time for each monopoly industry when it was believed that the best and cheapest way to provide some capital-intensive service where economies of scale were required was through a private sector company (rather than, say, a municipal utility). In some cases, the decision was probably a good one; in others, possibly less so. In *all* cases, the stage was set for a time when changes in technology would lead to the situation where the status quo (government-regulated monopoly) was awkward. So, I think ATT did about as good and as fast a job of wiring up huge pieces of the US in its day, and provided a level of consistent service that served a genuine public good. But the possibility of commodity long-distance pretty much completely changed that reality, so you had the ATT break-up and now the really awkward situation situation where the Verizons and Qwests of the world have some shadowy status of quasi-monopolies via the effective use of bureaucracy.
Wiring up big metro areas for cable was certainly expensive, costly, and not the kind of thing that any company would jump to do unless they had a guaranteed revenue stream. This was fine when all cable amounted to was higher quality feeds of local channels and a few exotic notions like HBO. Now the capacity and reach of the system has gone waaaay beyond that for which the original monopoly made sense...but getting a system with universal access and anything like free market pricing and any kind of reasonable structure is tough.
I could go on. I think it's pretty clear that in most cases, what has gone wrong is neither some raw "failure of the market" or "failure of governmental regulation" but changes in the whole technology landscape that have had completely unforseen consequences on companies, governments, and citizens. It is going to be a mess. I think a market can set prices when it is competitive, but we don't really have many of those going now (except for long distance telephone, the big success story for de-regulation). I think regulated monopolies can spend the money it takes to get infrastructure built, but they are much less useful when their reach extends to the content that is broadcast or the services that are provided.
For that matter, some of the near-future technologies that can help remove us from this quagmire will also require some amount of regulation to do any good. I think wireless IP will be the best thing since sliced bread within a decade. With the appropriate set-up, you *could* do voice, date, TV...you name it with a much different kind of capital outlay (look ma, no cable being laid in our street!). But we already know that unfettered 802.11b can have some, um, interesting consequences if there is no planning or regulation of the use of the specrum involved.
I have no idea what the best answer is, but I have little faith that either hard-core governmental regulation approaches or cowboy networking provide the best answer to all concerned.
Re:Good argument for government intervention... (Score:5, Insightful)
Armed with this power, the state can then extend a monopoly status quo beyond the point where it has short-term bebefits.
Libertarians generally say that this is a poor trade. In those cases where many agree that the short-term expense would be worth the immediate benefit, you wouldn't need government intervention.
There are many industries where economies of scale are enormous. The PC industry is one: it costs an enormous amount of money to make the "first" new-fangled CPU. After that, they're cheap as dirt, almost literally. No government intervention was required for this industry to take off. And, while I would have liked to see cheaper PCs sooner, it would be wrong to tax my fellows to achieve this.
The record on government intervention to "jump-start" infrastructure is generally poor, the odd success notwithstanding extended scrutiny of the track record.
Re:Good argument for government intervention... (Score:3, Interesting)
So tell me, if you had your way, would we all be driving on State Farm toll roads, pissing in Enron sewer systems, and riding in airplanes controlled by the Microsoft ATC network? Gee, it smells just like utopia...
Re:Good argument for government intervention... (Score:3, Interesting)
No, I might have that, and you'd be free to continue to subscribe to the present tax'n'burn state, just count me out.
The trouble is, this is not what you want. To achieve the rapid infrastructure buildout you desire requires taking from others, who may not agree with what you desire, by force.
In my book, that is theft, pure and simple. Your subscription to a mob-rule ethos does not make it moral. I count you, and your ilk, among the biggots, racists, petty thieves, religious zealots, and Nazis of the world. Chose what you will for yourself, but please do not presume to chose for me.
Re:Good argument for government intervention... (Score:2)
In my book, your philosophy is a laughably unrealistic pipe dream, a Randroid power fantasy built on a foundation of pure conjecture, with no more empiricism behind it than any of the other fantasies you disdain. And I don't believe for a second you could "do my homework for me," because I don't think you really know anything... all you've got is bluster and hot air.
A tip of the hat, though, for the hyperbole. Nice touch.
Re:Good argument for government intervention... (Score:2)
I've bolded the quote to reflect the tone of the post.
Notice that when faced with the immorality of majority-sanctioned theft, the statist has to resort to bluster. Let's pick this apart, bit by bit:
I'm not choosing anything for you,...
Ah, but you are. And you're chosing for all who disagree with you, to boot. Asking a government to regulate something that meets with your dissatisfaction, is asking that government to take my hard-earned money, and spend it to effect the outcome you desire, and furthermore inflict that outcome on me to the extent that free-market alternatives that might satisfy my desires can't compete with the state-sanctioned monopolist, whether legally, or economically (due to tax-funded state subsidies).
Democracies euphemize away the theft aspect of this practice by virtue of mob support, however taking from one against their will, so that they are without is theft, pure and simple. It is surprising that democracies don't degrade faster than they do, given that the few checks against outright mob rule are codified on flimsy sheets of paper in the form of a constitution.
I'm choosing for me.
Well, yes, but at the expense of others' freedom to chose for themselves as well. If you wish to form a cooperative to build out the kind of infrastructure you seek, and exclude me if I don't contribute to your cause, then more power to you. But, you and your supporters, can't muster the money to do this, so you use force to take the extra you need from others, often offering them a piece of the spoils. A forced exchange is neither fair nor free.
I couldn't care less what you want...
I doubt this since you take such a vocal, ardent, and venomous stance against my libertarian beliefs. This suggests that you very much do care that I oppose your intrusion into my life and indirectly into my wallet. Perhaps my calling you a thief brought this on, but I call a spade a spade, and you certainly have the attributes that I would associate with a thief, or at least a would-be thief. All statists share this attribute, so don't take it too personally. You have plenty of company.
Well, no I'm not. There are things I can not do, like send my child to a better school, contribute more to worthwhile charities and organizations like the EFF, etc., because of my tax burden. If the government wants to offer me a service, fine -- send me a bill. If economy of scale arguments are so compelling that the government can offer services to me cheaper than any private organization, this leaves room to raise the price, while still remaining competitive, so as to subsidize the poor.
downing government-regulated Jagermeister (pretty much a zero percent chance of permanent blindness, thank goodness)
Oh! A swipe at an unregulated alcohol industry. If the government wants to certify distilleries as "safe", then let it, and sell me a list of the safe ones. Or, offer a certification program, with fancy little seals and certificates (though that is so ripe for corruption)..
Well, this brings up back to the original complaint. Perhaps it isn't improving because of the government-sanctioned monopolies that remove any incentive to improve. Perhaps most people are too stupid to realize how bad things are. Perhaps someone jumped the gun on trying to deploy DSL on 50 year old loaded copper pairs in an attempt to make a fast buck. Yeah, it would be nice for the future to be here already. But, to spend other peoples' money in an attempt to fix things is plain wrong. It is even wronger to give this money to the organization that likely fucked things up in the first place with their policies.
Rand, off-topic (Score:2)
Rand was in favor of a strongly capitalist, very free market, with little government intervention (given the track record of government, I really don't see how this could be any worse than the system we have today). She said nothing about abolishing government altogether, nor did she engage in lsd-inspired fantasies of 'practical' anarchy. Rand was quite aware that anything close to anarchy was a crock and had already been tried hundreds of times in the past, all with the end result of the powerful stomping all over the weak.
Rand was vocal, committed, and entirely opposed to the fucking morons of the day - of which their were quite a few, the communists not the least among them. So what? Most of what she said turns out to be fairly accurate, and well ahead of her time - which peaked in the bloody 1950's! For her time she was practically visionary, especially compared to her contemporaries. Some of her ideas might be outdated by now, but the same bloody thing can be said of Adam Smith and you don't hear anyone talking shit about him.
Max
Re:Good argument for government intervention... (Score:2)
OK, so I'd written a much larger reply to this that got taken out by a Netscape crash. Serves me right. All I will say here is that I really don't see any connection between what you say here and what I said above. I was discussing situations where no good is provided unless something gets started, and that one way for things to get started is via a regulated monopoly. Also, that the problems creep in when the purpose for which the monopoly was desirable is lost and replaced (often through technological innovation) by some other purpose which should not enjoy such a protection. Cable TV is a pretty natural monopoly to grant when all you're doing is giving people the chance to see local stations with less interference and something like HBO; then, it is just a content conveyer. The monopoly is no longer desirable when it becomes associated with the identity of *the* big-time content provider to most homes, and the supplier of most internet bandwidth besides. How do we get out of this? It's not easy, but I severely doubt that saying "let's let the market sort it all out" will work because a monopoly is now involved. And (wait for it...) monopolies and markets don't mix well.
OK, so I might have been a bit unclear in my original post. The obvious reasons why governmental intervention is a bad idea in the PC industry are simply:
So while you could argue cases for electrical power delivery, the telephone, the interstate highways system, and old-tyme cable TV, you wouldn't argue for PCs.
This looks like a statement unsupported by facts. I would claim that the government was intimately involved with successful projects like:
Now, this doesn't mean that whatever government touches turns to gold; involvement in agricultural subsidies, Amtrak, military protection afforded to oil companies, resource management in national forests would all be poor examples. I would argue that the common thread through most of these are that these are situations that do not involve common goods and/or positive network effects. (OK, so losing money in the timber industry is just blatant theft, but that's a different thread.)
I actually don't think we're as far apart as you think, but I'm not sure that many libertarians really do take the historical record into account as much as they think they do.
Re:Good argument for government intervention... (Score:2)
Utilities backed by government monopolies enjoyed higher profits far too long because of their monopoly status. Hence, "deregulation" being all the rage.
Canada, and Quebec, in particular (admitedly, not part of the U.S.) are notorious for building roads, at great expense, to nowhere, simply to bolster employment of road-building workers. Not quite the same as a monopoly, but such disasters do not inspire confidence in the ability to plan and regulate anything.
Put another was: do you really want technological infrustructure to look like subsidized housing?
I just don't subscribe to the notion that the taxpayer should subsidize an infrustructure buildout unless there is strong desire for same, and then you don't need the subsidy!
It's almost laughable that /. attracts both the anti-CBDTCA (sp?) and anti-DMCA crowds, as well as people calling for increased government regulation for their favorite technology.
Re:Good argument for government intervention... (Score:2)
Do you really think that government-mandated infrastructure build-out would not be "bought" the same way? In fact, the present mess probably exists because it is!
Re:Good argument for government intervention... (Score:2)
About the only area where your argument has weight is in recent adaptation of mainframe and supercomputer architectures (piplelines, vector processors, banked memory) to PCs. My focus was on the commoditization of the PC industry, leading to standards that brought about mass production and interoperability. These standards generally came about with little government intervention, other than official standards recognition where appropriate.
Re:Good argument for government intervention... (Score:2)
In fact, if the PC industry borrowed from such subsidized innovation, it certainly repaid the loan many times over with further innovation in those areas spurred by the consumer market demand for PCs.
Re:Good argument for government intervention... (Score:2)
Perhaps I was not making myself clear. While the PC industry may have benefited from subsidization of the mainframe industry, bootstrapping the commoditization of the PC industry was not the intent of this subsidization (I doubt anyone seriously imagined PCs at the time). This is what I meant by the PC industry taking off without government intervention. In fact, the road from the Altair/IMSAI, through the Apple ][, through various Z80 CPM incarnations, to the PC, was a rather slow one, but effective at weeding out good ideas from bad ones: 1975 to about 1982.
Would you really have wanted government-mandated PC busses, bioses, and operating systems, in, say 1977? Perhaps DMA would be illegal, because the computer would be too powerful.
I find it pointless to argue for the benefits of government intervention because somewhere, sometime, government may have had a hand in some precursor of modern technology. In fact, given the post-WWII/cold-war millitary/industrial complex, your'd probably be certain to find such a connection.
Moderators, Wake up! (Score:2)
Re: (Score:2)
Re:Good argument for government intervention... (Score:2)
Well, yes, early adopters, er, adopt early. And, with some expense, and difficulty. This is true of all new technologies. It was true of dial-up internet access. Few people had it in the late 80s. Then, it spread like wildfire once the average Joe and Jane saw what their fortunate tech-savy friends had. But the key point was that earlier attempts at such networks for non-tech savvy people failed, generally because of their closed design.
Would you also call for taxes so that GNU/Linux be made ready for the desktop? Or, worse, made free/open source development illegal unless it was with the express purpose of dumbing it down for the desktop?
Re:Good argument for government intervention... (Score:2)
Okay, I've been trolled and caught. But...
The lack of broadband is beginning to have a real effect on the economy, quality of life, education, and even traffic and pollution (since telecommuting is often impractical with a dial-up line).
Whose quality of life? My dad is perfectly happy without broadband at home. If he could, he'd dump the phone as well, but mom loves email.
Telecommunting's problems are outdated management ideas, not lack of broadband.
To all of you anti-government people, I say "get a clue!" The current system is not working and the free market is, by and large, not solving the problem.
While we're at it, let's pass a law forbidding bad luck and bad weather.
First, the reason we have telco and cable monopolies is because of legislation. You are advocating fixing the problem by calling the same people who screwed it up. If a plumber plugs your sewage line into your ice maker, do you call the same guy when you need to replace your faucets?
Second, how has the free market failed? The government-sanctioned monopoly wasn't providing the service, so a motivated guy put together an alternative. If, in the end, he isn't able to get access to the Qwest local loop, do you think he'll kick the dirt and say, "Darnit..."? Or do you think he'll move to 802.11b?
Nice troll, though.
Re: (Score:2)
Re:Good argument for government intervention... (Score:2, Insightful)
...
The Congress needs to issue mandates to the phone companies requiring that they make DSL available to all customers.
Quibble. If your county has given Cox a monopoly on broadband service in your area (I'm assuming that your local county gave them the monopoly, but I'm certain it wasn't Congress), then your county should be taking it away.
It bothers me when everyone runs to Washington to pass new laws everytime someone gets a hangnail and then turn around and complain that Washington has too much power.
Re: (Score:2)
Re:Good argument for government intervention... (Score:2)
We are left with two choices of service where there is a physical wire running to our house. That's DSL and cable. DSL is, at the present, hindered by transmission distances. You have to be relatively close to a central office to obtain adequate DSL service. And before somebody mentions iDSL, let me say that in my opinion, that's not high-speed. Cable modem is somewhat hindered by limits on how many locations you can put on a single loop. Certainly there are many areas that can receive cable TV that just have too many people out there to make cable modem available to all. To complicate matters, it seems that most areas that have one of these choices available lacks the other choice. This is, actually, not too surprising. Central offices will be closest to the most dense areas, while cable modem is actually more operable in areas with less density. You can also be sure that the avoidance of competition has been somewhat intentional. After all, you can charge higher prices and provide crappier service if there's nobody to compete against. I'm not going to accuse the big DSL and cable providers of collaborating on this, but I wouldn't be overly surprised to find out that they do. And as far as I know, there's nothing illegal about that unless they discuss pricing. (IANAL)
Now, let's suppose that Congress mandates the availability of DSL to all customers. That means that the phone company needs to build CO's close to every tiny little area on the map. That's INCREDIBLY expensive (obtaining land and permits, building the office, laying the cable), takes time, and the phone company may never see anything close to a return on their "investment." Cable providers would have similar problems, although it may be cheaper to lay cable for an additional loop than it would be to build a new CO. I'm not sure about that.
All of the service problems that have been mentioned (no VPN, no servers, bandwidth limits, crappy service, high prices) are the DIRECT result of the lack of competition. Unfortunately, the local monopolies OWN that "last mile" that is necessary to connect to the residences. They paid to install all of that cable and it's not really fair to ask them to just give access to it away at no price. And there are very very few startups who have the resources to lay their own wires. So, those few companies that provide any competition are forced to pay for use of the local loops. Once the big boys start charging for use of their wires, it's really easy for them to set the prices or service levels such that it drives their competition right out of business. And it's really hard to regulate that part of the industry.
So, how do we resolve the situation? There are really only a few choices as far as I can see.
Re:Good argument for government intervention... (Score:2)
As a side note I made a slight mistake this weekend and installed IIS on my Win2k box. I always keep up with the service updates and security patches. However, since IIS was installed after the patches (at 4am) it was unpatched and I didn't run Windows Update to correct this. The result was Nimda found my computer within 8 hours and setup shop. Then my virus scanner found it and I eradicated it. Could not believe how fast this stuff happens!
JOhn
Re:telcom monopolies exist ONLY because of governm (Score:2)
And then there's the logicistical constraints. How many people will be allowed to string up their cables? There is a finite space on the *ahem* power companies poles and in the state's right-of-way. So, how many 8" water mains do you want in your front yard? There is a reason why we have public utilities. The fact that we are now using a public utility for something other than a public utility (internet access, broadband, etc.) is creating the problem.
Re: (Score:2)
Re:Sad state of broadband (Score:2)
Re:Sad state of broadband (Score:2)
Basically, you have a FUBAR'd telecoms sector (Score:2)
[1] Not that Europe's telecoms industries are well run either.
Is this really so bad? (Score:2)
I think it's interesting that many people consider this to be a necessary evil instead of a wonderful opportunity.
Coops seem like the perfect way to handle connectivity. It's minimized middlemen and cost, minimized involvement from people from afar (both in terms of regulators and faceless corporations), maximum local accountability, and maximum fairness. Solving the last mile problem by having people in the last mile deal with it, sounds pretty ideal to me. The only real drawback is that it requires a bit more activism and getting off one's butt, as opposed to just writing checks.
Re:Sad state of broadband (Score:2)
Re:Sad state of broadband (Score:2)
Think that's bad? Have pity on us here in Ireland, where our national telco is touting ISDN as 'high speed'. Hah! :-( We don't even have flat-rate analogue.
Check out Ireland Off-line [irelandoffline.com] for more info ...
Actually BT are getting their act together (Score:2)
[1] 10 days[3] down on my adsl connection and counting...
[2] £20 ($30) / month
[3] Bastards.
Re:Actually BT are getting their act together (Score:2)
Bastards...
Stick your postcode into the Consume node lising, there may be nodes nearby: http://consume.net/
Cooooooool! (Score:3, Insightful)
And it could never occur in the middle of a city, though I would think T1 wiring would end up being cheasper in an urban area.
But... Here's to hoping my neighbors wise up and realise that they, too, need to stick it to the establishment and form a neighborhood broadband ISP!
Re:Downtown shared broadband impossible? (Score:3, Interesting)
New Yorkers feel your pain (Score:3, Informative)
I live on the upper West side of New York -- which by New York standards is pretty nice. Doesn't matter -- Verizon is all in it like termites. I've yet to meet a DSL provider that can go head to head with the V monster and stand a chance of providing me reasonably priced, consistent DSL over 128kps.
One particular company I worked with in midtown had outages in their DSL line at least twice a month -- the DSLs excuse: Verizon. What exactly is the matter with this company? I suppose I expected too much just because they changed their name from xBell to Verizon.
__________________
Charges (Score:2, Insightful)
Re:Charges (Score:2)
Most lines like that (and all bigger lines) will be run under some sort of 95th percentile pricing...basically, you pay the flat monthly rate until your usage passes 95% of full, continuous. (There's lots of argument as to just how to compute that 95%, but that number's pretty standard.) Above 95%, there's a "burst" rate that you'll pay for the extra usage (the point is to get you to upgrade rather than smoke a little line/router).
That sort of contract is pretty standard for T-1's and the like...I would think that the bandwidth bit is already taken care of.
About time (Score:3, Interesting)
A barn? (Score:4, Funny)
Wow, that's a much better idea than any of the Verizon installations I've seen....
--saint
Damn-it (Score:2)
bastards....it better be somthing lik 2000MB per month.
Any co-op can work in the right place (Score:2, Informative)
The best option appears to be a large apartment complex inhabited almost exclusively by business and law students. The complex has its own T1, and I am told it charges a flat fee of under $250/year for each unit. The residents with whom I spoke said there were never any speed problems.
Perhaps high-speed access is similar to cable 20 years ago. Back then, companies trying to gain customers would promise lifetime rate guaruntees and free premium channels when pitching to condominium complexes. Some of the older condos still are under these plans - to the displeasure of the current cable monopolies. One resident even was able to turn away the cable guy who was sent to disconnect his cable because he proved that he was protected by the condo agreement. The cable guy left in a huff after verifying it with the central office.
The beauty of internet access is that it is (for now) a commodity based on open standards. As long as you have IP connectivity and open ports, there's really no differece what kind of access (DSL, cable, microwave, pigeon, etc) you have. This openness could promise a rosy picture for co-operative pricing models.
fallacies and good info (Score:2, Insightful)
Broadband is dirt cheap here in the states.
Besides, look at cellular... back in 1986 it was horribly expensive.. now you can get 60bajillion minutes for $39.95 (nights between the hours of 3:00 and 3:15am and weekends during full moons and if the outside temperateure is above 59 degrees)
broadband is a spanking new technology.. and these grass roots attemptes are great! (I run a 802.11 open WIFI network in my city.. I give away some of my expensive bandwidth..)
But please get real people... Broadband at home is dirt cheap. and if you cant afford $50.00 a month then why the hell are you wasting your money on luxury items like broadband?
Re:fallacies and good info (Score:2)
I have 1 MB DSL with a cap and extra charges. But guess what I have full DSL speed access and the lines are always up. You know how much fun it is to download at 1 MB? Tons....
Re:fallacies and good info (Score:3, Interesting)
If you didn't read the article, here is a choice quote:
"By far the biggest challenge faced by the Coop - a challenge that dwarfed any of the technical and financial challenges - was gaining access to subloops from Qwest under the Telecommunications Act of 1996," reads the homepage introduction. "The course of negotiations was such that the Coop found it necessary to file an informal complaint with the Federal Communications Commission and subsequently found it necessary to pursue arbitration before the Colorado Public Service Commission."
Re:fallacies and good info (Score:3, Informative)
Cable providers do not purchase bandwidth in T1 size chunks. They buy OC-48's, OC-192's and split it through their own network (most of which was funded and built by the TV side of the business) In a mid sized market, broadband costs the cable company about $12-17 a month, while you are charged $40-70. Plus they are making money on the cable modem lease.
The cable companies biggest expense is depreciation on equipment purchased 3-5 years ago.
Your notion that bandwidth is so expensive is not really that accurate. Monopolistic telephone companies charge inflated rates for T1 service because they can. Broadband will be similar soon as the cable companies flex their monopoly muscles to the end-user's detriment.
Re:fallacies and good info (Score:2)
Um, you are basiclly agreeing with the guy. Hence:
The cable companies biggest expense is depreciation on equipment purchased 3-5 years ago.
Wrong. The biggest expense in any semi-large business is always the salarys of your employees.
broadband costs the cable company about $12-17 a month, while you are charged $40-70.
Er, that's not really that much of a markup there Jimbo. Do you have any idea how running a buisness works and how much it costs? That markup wont even pay for one tech support guys salary + benefits for one hour of work! Assuming you need at LEAST 1 tech support person available per 100 or so users at any given moment, and these techs earn a modest 15 dollars / hr including benefits, it takes a 30 dollar a month profit just to pay the support guys. Now add in your costs for things like rent, power, heat, and a general profit margin, and see how badly they are "robbing you".
Re:fallacies and good info (Score:4, Insightful)
Have you ever heard of something called "accounting"???
As a business, if you buy $2 million worth of equipment that has a life of 5 years, you charge $400,000 per year against your bottom line as a depreciation expense. Cable companies invested heavily in equipment for broadband service 1-5 years ago, so they are still feeling the pinch of depreciation expenses for capital equipment purchases.
If a line costs $12/month and you charge $40/month, you have a gross margin of 70%. That is incredibly high -- ripoff things like extended warranties and car undercoating usually run in the 50-80% margin range. Supermarkets run 2-5% margins, department stores run 8-15%, manufacturing companies run 5-20%. If you cannot make money with those margins, you are incompetent.
Your call center numbers are crazy too. At my last gig we had a call center with anywhere from 20-120 people working at any one time. These folks handled upwards of 2500 calls per hour peak and 75% of them made $8.50/hour or less.
Re:fallacies and good info (Score:2)
I know for a fact that my cable ISP has an OC-48 link to a larger peer in Boston, and a bigger OC to NYC. From the other posts here, I gather that other cable ISP's run everything from T-1 to smaller sonet connections for much larger metro areas. I guess that's why they complain so much about the quality of service.
I have zero complaints about my Time Warner Cable franchise; they are fast and fix things quickly when problems strike. But they are not going broke. I have to pay $40 a month for a crappy basic cable package so that I can pay $45 for cable internet. I read in the local paper last week that the average cable bill in our area is $100/month.
The simple fact is that AOLTimeWarner is pushing up the price of "standard" road runner to make other because other options like AOL Highspeed and Earthlink are more profitable at the customer's expense.
Re:fallacies and good info (Score:2)
I personally agree with what you are saying. However, not everyone has the $1500.00 a month to shell out for a static ip.
btw, who in the hell says DSL access is cheap?
Re:fallacies and good info (Score:2, Informative)
The bigest fallacy is that the bandwidth is expensive. Bandwidth does cost money (and good reliable bandwidth cost more.) BUT almost half the cost for that T1 is the local loop charge, which goes to the "Bell"s. They are reaping huge rewards from the digital boom! (and if you are paying 1500/mo for a Tier-1 T1 my friend, you are getting ripped off big time!)
If you are a big time ISP and you can afford to colocate in the "Bell" facilities you can cut your local loop charge, while taking it up the *** for the colocation fee, you still come out ahead, but not by much.
Bandwidth does cost money, but the Local Exchange Carriers are keeping a strangle hold on the cost by charging a ton of money for the right to use thier lines. A monopoly by any other name is still a monopoly.
~Sean
Luxury (Score:2)
Thats right. I found the half was restrictive, phoned the telco, asked for a quote for a 2 Meg upgrade and was told it would SAVE me £30 a month.
Bitches!
This had been correct for about 6 months. Thats £180 they shafted me for! THATS what makes it seem expensive. People dont know what it costs, and have nasties (or nicies - which people still perceive as nasties) jumping out at them.
I consider my line good value- actually, I consider it cheap. Thats because I NEED it to work through. If I NEEDED it to play games on I'd think it was fucking expensive. Needs must!
People never complain about the price of water - only the price of beer.
Re:fallacies and good info (Score:2)
broadband is a spanking new technology..
True! For the first few months I had my cable modem, all I did was stay at home, download porn and spank 24-7.
InitZero
Re:fallacies and good info (Score:2)
A T1? What are you thinking?
If you really want to run a server, do what the pros do and get space in a facility that is dedicated to doing that. You can get a dedicated server [he.net] with 1Mbps of traffic for less than half that price. I like Hurricane Electric, but there are also dozens of other companies that do the same thing, do a search on Google for "dedicated servers".
If the company is any good, they include the computer, the space to store it, the electricity to run it, the UPS to make sure it keeps running, and a staff that spends their day making sure your connections stay up, and of course, a static IP, all for a fraction of the price you quote.
-- this is not a
Experiences in a Condo / Home Owner's Association (Score:3, Interesting)
Together our Condo Home Owner Association runs our own ISP/network. Every unit has 2 cat5 cable drops connected to our central server room. There we operate a simple mail/proxy/DNS/dhcp server for the residents of the building. In addition we now have wireless access on most floors of the building and are considering adding network attached security cameras so we can see how's at the front door.
About 20 people are sharing a 1.5/1.5Mbps SDSL connection for the paltry sum of $22/month/user. Each person saves around $30/month and gets the higher peak bandwidth. I would definitely recommend doing this, especially if you have the tech volunteers to implement it.
Re:Experiences in a Condo / Home Owner's Associati (Score:2)
ostiguy
Broadband is cheap, bandwidth is expensive (Score:4, Interesting)
You can't get data to your house for nothing.
It's already pay for what you use on a larger scale. It's no different for broadband. Bandwidth itself costs money, infrastructures cost money, international sharing agreements cost time and money
Get real people. Having access to 2mbps is not the same as downloading at full speed all the time on it.
Internet always on != downloading all the time.
Here I pay a huge amount for 2mbps. But, I resell parts of it an calculate that I can cut costs because everyone is not using the bandwidth all the time.
Broadband users are generally bandwidth hogs and ISPs just got the pricing wrong. Live with it. The economic reality is that your real cost to your ISP is:
local loop + equipment (probably monthly fee + equipment depreciation) = not a lot
Actual KB transferred = a fixed, calculable cost to them.
So that's all there is to it.
Re:Broadband is cheap, bandwidth is expensive (Score:2)
However, the important point is that the 7GB/day is from the local networks. I'd guess it's about 90/10 from telco/cableco networks. And You know what that means? That the cable traffic may be significant in that it's shared bandwidth (except that as it's pretty much evenly distributed, it's not much in the end), but the telco traffic is nothing, as it's 10Mbps dedicated to their backbone. And in there, it's local traffic, and thus there's so much bandwidth that it won't be a problem, and also it doesn't cost them a cent in addition to local equipment and bandwidth, as opposed to any traffic from/to outside their network where they probably pay by the bit to peers and global backbones.
The point is, if the providing ISPs manage to provide such content that the consumers want from within their own network, the issue of bandwidth becomes irrelevant. Then we can finally start talking about broadband content and price of the content.
Oh yes, both the telco and cableco have different kinds of audio and video content services.. Alhough I do prefer my regular TV set for AV content, and the cableco provides enough content via standard cable TV means that I haven't checked what additional AV content do they provide for broadband data customers.
Dunno, here local loop is kinda costly (Score:2)
Bandwidth certianly does cost money, noone is arguing that, however I do feel that an awful lot of the charge is in the local loop part, and with no good reason. Like here Qwest provides DSL lines at varying speeds, andthing from 256k up to 7mb. Thing is, the faster lines cost more. Not just for bandwidth, but for the actual line itself. If you want to get a 640/256k line and connect it to say a company network it'd be like $30 a month or something. Take that same line and upgrade it to 7/1mb and now you are talking $400 or so. In both cases you are talking just line costs, no bandwidth on top of that.
Qwest... the world's worst telco? (Score:2)
equipment list (Score:2)
2) Microwave relays
3) DSLAM
4) webserver running on a 386... site is already slashdotted
Re:equipment list (Score:3, Informative)
our city apartment shares T1 lines (Score:5, Informative)
We are in NYC and have co-op apartment in a 5 building complex with 400+ units. The co-op arangement means that the units are owned collectively by people who live here, so the decision was made by people live here and who have very much the interests of those who live here in mind. Our course, many of the people who live here are not taking full advantage of the bandwidth (there are many little old ladies who emigrated from Eastern Europe post WWII here.) In a sense, their maintenance is subsidizing the rest, but even those who do not use it or do not use it much are very pleased with what it has done for the resale value of the apartments. ("Free high-speed internet included with unit.")
Before we did this, we tried to figure out how much it would cost per unit, but that was hard to get a true cost since much of it was one-time costs like wiring and the firewalls and hardware, and since much of the setup and planning was done for free by people who live here. Even the most pessimistic estimates, though, put it at around than $10/mo /unit long-term, way less
than the $50/mo
cost of cable modem "service", which had been
the only previous option. Since around
one in five units already were paying for cable
modem service, with more people signing up
each month (that was two years ago), it was
cost-effecive and a significant improvement in
many respects.
Re:our city apartment shares T1 lines (Score:2)
Re:our city apartment shares T1 lines (Score:2)
Actually, it wasn't a total no-brainer cost-wise as to how to actually do something, and we did look into wireless and thought that might work out cheaper, but are happy with how it is arranged now. Our buildings are prewar and running the wires was nontrivial (we used ventilation ducts and some space in the trash compacter areas) but now that it is there, we are happy. There are occasional outages (30 minutes/month, usually less) and some odd config problems, but overall our service (run by community members, primarily) is way better than what some of us were paying for beforehand from Time Warner.
Re:our city apartment shares T1 lines (Score:3, Informative)
You should look at the cost fo a T3, they can be cheaper than many T1's
-- Tim
Re:our city apartment shares T1 lines (Score:2)
what a small world (Score:2, Informative)
I'm sure his stunning interpersonal style will have greatly contributed to the ease with which the negotiations with Qwest were carried out.
Re:what a small world (Score:3, Informative)
Anyway, his opinions on patents are not directly relevant to getting your own DSL coop running. Just understand that the guy behind this one is a high-powered, media-savvy lawyer who knows how to deal with his counterparts in government agencies and corporations. Given the kinds of cases he appears to have been involved in, I suspect money is no problem either. Somehow I think mere engineers like us have no realistic prayer of getting nearly as far.
Re:what a small world (Score:2, Informative)
Re:what a small world (Score:2)
You can't seriously believe that local phone companies wouldn't fight this tooth and nail. Our phone company has been promising DSL for years and failed to deliver. But you can bet that they would come up with an endless stream of legal and technical obstacles for why we couldn't do what you did, and we wouldn't even begin to know how to challenge that. For that matter, without a lawyer, we wouldn't even know how to structure the cooperative that would be delivering service. We'd spend more money in legal fees just to set this up than you spent for all your equipment, assuming, of course, that we even could interest a lawyer in this.
I actually think of myself more as a "mere engineer" than as high powered or media savvy.
I'm not questioning your qualifications as an engineer. But the fact is that you are (also) a practicing lawyer, and a well-known one at that. That's great for you, because you have both the experience and resources to get your legal rights, when it comes to patents, dealing with telephone companies, dealing with traffic stops, or the FCC. Other people don't have that choice. In fact, you yourself keep pointing out tirelessly that engineers just aren't qualified to assess the legal significance of patents.
I'm sorry that my previous message sounded a bit like a personal attack. But I just can't help being cynical about a small legalistic victory by a lawyer. The sad fact is that the US is a highly legalistic society in which most people just have to live with whatever governments or companies dole out to them. As other Western democracies show, it doesn't have to be that way, but as long as the entire US political system is completely dominated by lawyers, this won't change. In fact, as you seem to demonstrate, most of them probably don't even think anything is wrong.
Re:what a small world (Score:2)
Re:what a small world (Score:2)
Pretty much says it all, doesn't it? And that alone should tell you that you have very little in common with 'mere engineers'.
Max
where is Moore's law (Score:2, Insightful)
Since then, PC's have gone from 90 MhZ to 2 GHz.
RAM has dropped in price by a factor of 20 or more. Disk drives by a factor of 100. Bandwidth inside of CMOS chips is up by a factor of 100.
So
digital signals is now cheaper than any
analog phone technology. Why should a T1 line be
any more expensive than a regular voice line?
The thing stinks of monopoly practices.
Re:where is Moore's law (Score:2)
1995 to 2002 is 7 years, which should be 3 to 4 doublings or a factor of 8 - 16.
If you were paying $2000 for 1/4 of a T1 in 1995,
you should be able to get a full T1 for $500-$1000 in 2002.
Guess what, you can.
If a long distance service offered three cents a minute anytime day or night,
you'd probably think it was an amazing bargain.
At $1000 a month, a T1 is under 2.5 cents a minute.
Even without compression, you could carry more than 1 phone conversation over a T1.
With compression you could do 30 streams of higher quality than the phone company,
at a cost of under
The question isn't "why does a T1 cost more than a voice line?",
the question is "why does long distance cost so much?".
-- this is not a
I was thinking of doing this (Score:2)
I was thinking wireless, and slightly wired ethernet for near neighboors.
Ok...DSL..Cable.... (Score:2)
It seems the real battle here in government will be whether or not the companies get the green light (green for cash in this instance) to do whatever they want or will governmnet step in to mandate changes to therefore push for quicker implementation and better competition.
The sad part is that initiatives by the government helped to get telephones and electricity to rural areas but at the same time I fear that government in its current state can't pull of the same move for high speed access. Why? Because we are not living in the same times and current government movement for such initiatives lately have been messes of bad comprimises and half thought out proposals that have just made situations worse.
We have the choice between industry strangling growth out of greed or government stepping in and quite possibly making the situation even worse.
I understand that the rates for telephone service in this country are much less than many parts of the world comparing to average incomes and such but what move can government or the consumer make to promote the kind of growth and price lowering to make broadband a true mass consumer reality?
_______________________________________________
Site Slashdotted - Mirror (Score:2, Informative)
Welcome to the Ruby Ranch Internet Cooperative Association The Ruby Ranch Internet Cooperative Association ("the Coop") is a member-owned and operated provider of high-speed Internet connectivity to homes in the Ruby Ranch neighborhood [rubyranch.com] in Summit County, Colorado.
The Coop was founded in 2001 because no one offered DSL or cable modem Internet access in our neighborhood, and because the voice telephone service to the neighborhood is of such poor quality that it is not possible to get modem connections faster than about 26K bits per second. The Coop is a Colorado nonprofit corporation [slashdot.org] and is federally tax-exempt under 501(c)(12) [slashdot.org].
The Coop's ProgressThe Coop has by now accomplished almost everything that is needed to be able to launch service. The Coop has obtained a DSLAM [slashdot.org] (DSL access multiplexer) and the subscribers have their DSL modems [slashdot.org]. The Coop has tested the DSL equipment and has confirmed that it will do what we need. A point-to-point microwave link [www.patents.com] needed to connect the DSLAM to a frame relay T1 line has been designed, constructed, and placed into service. Cabinets and protective equipment have been installed in a barn [slashdot.org] where the DSLAM will be located. You can see a system diagram [slashdot.org] and description [slashdot.org]. Nearly all of the subscribers have arranged for inside wiring work as well as installation of DSL modems and DSL routers, and several subscribers have installed local area networks permitting two or more computers to share the DSL connection. The DSLAM and associated routers have been configured and a block of IP addresses has been obtained and routed. A monitoring system has been set up to monitor the DSL connections, and a second monitoring system has been set up to monitor the UPS (uninterruptable power supply) and the cabinets. The Coop has acquired spares for some of its equipment, with the goal of reducing down-time in the event of equipment failure.
By far the biggest challenge faced by the Coop, a challenge that dwarfed any of the Coop's technical and financial challenges, was gaining access to subloops from Qwest under the Telecommunications Act of 1996. (The subloops are needed to connect the DSLAM to the subscriber homes. The buried telephone cable in our neighborhood has some three times as many subloops as are actually needed for voice service, and the subloops we wish to rent are among the hundreds of spare subloops which otherwise would generate no revenue for Qwest.) The course of negotiations was such that the Coop found it necessary to file an informal complaint with the Federal Communications Commission [slashdot.org] and subsequently found it necessary to pursue arbitration before the Colorado Public Service Commission [slashdot.org] ("CoPUC"). In the arbitration, the CoPUC found that "all of [the Coop's] proposed equipment is compatible with the Qwest network," and that "Qwest is technically able to accommodate [the Coop's] proposal." The CoPUC found that the Coop is entitled to pay "wholesale" rates for the subloops rather than much higher retail rates. Finally, the CoPUC found that because the Coop will be providing only data services (not voice services) and because the Coop will be offering its services to everyone in its service area, the Coop does not need to be a CoPUC-licensed telephone company. (This is very good news, since being a licensed telephone company would impose prohibitive accounting and record-keeping burdens.) After the CoPUC's arbitration decision there were further negotiations with Qwest, and a signed Interconnect Agreement between the Coop and Qwest has now been submitted to the CoPUC for approval [slashdot.org].
What remains to be doneThe chief remaining action items are:
Barring unforeseen difficulties, the Coop expects to be able to launch service by June 1, 2002, and perhaps sooner.
This page is http://www.rric.net .
They lost the hearing at PUC (Score:5, Insightful)
This will cost them thousands in set-up fees, $120 activation fee for each line to a house, and $8.37 per month for the bare wires. All this does is connect them to a barn. Now they need to get an internet connection via microwave and a frame relay circuit. This is an example of millionaires at play, not for the rest of us
Re:They lost the hearing at PUC (Score:3, Interesting)
Huh, Germany is better in DSL than the US? (Score:2)
And its cheap too, we got ADSL 768 kbit downstream and 128 kbit upstream. The price for the DSL is $8.80 per month, but you have to purchase the internet connection seperately. You can either choose some providers with time- oder volume-based billig, or you can get all-you-can-suck (called flatrate) for $21.90.
So for a total of $30.70 per month i'm having 24/7 dsl with normally arround 80 kb/sec. Not too bad. I don't understand why it is all that expensive in the US. The US used to lead the internet competition and used to have to lowest prices, but it seems its loosing fast. This could be a real treat to US economy.
Weird (Score:2)
I planned-out a network for 36 homes in the Newton area of Surrey BC, Canada utilising 2 4 Mbit ADSL lines (for a total of 8).
If I get around to it, I'll convert it to HTML (it is in Word format right now) and possibly risk getting my server Slashdotted.
Can someone explain... (Score:2)
Unused T-1 (no profit) =
Unused T-1 (profit) =
100% used T-1 (no profit) =
100%used T-1 (profit) =
I do understand there are network engineers (big bucks people) and equipment costst a bunch too, but still...
Why is bandwidth soo expensive???
Useful discussion list (Score:2)
It's full of interesting tidbits on what is involved in making such a system work.
And the phone companies say... (Score:2)
...that demand for broadband isn't there. Hell, they're not willing to listen to the demand.
I came close to starting a wireless network in my neighborhood fed by a T1 (or better) line. We're all about 500 feet farther than the phone company will allow for any DSL service. But they'd gladly charge a fortune for a T-class line. Unfortunately most of my neighbors are happy with their cable modem access to AOL and I opted for an IDSL connection.
You just have to ask: What good is mandatory copyright protection in computers to protect digital movies that require broadband that the phone companies aren't willing to provide in the first place?
Re:And the phone companies say... (Score:2)
Sucks to be you. And I mean that in the kindest possible way: I was in the same boat.
That strikes me as expensive. If your're willing to pay that kind of $$$, perhaps you can arrange what I did to get 768kbps x 384kbps ADSL at 15.6 kft from the C.O....
I got a dedicated pair for the DSL, and didn't piggyback it on the existing POTS line. True, this cost an extra $15/month (I pay a total of $81.18/month with tax, in Allen, TX), but it was worth it -- Internet America was the only ISP willing to do this, and they do this as a matter of course for people at the end of long loops. The only catch is, they can't guarantee any particular rate when the service is ordered, but they will qualify the line, and offer the best service they can up to what you desire. If they can't meet your requirements, all bets are off. Struck me as fair.
It also required that I pay for "professional installation" ($150, IIRC), which I didn't need as I ran all outside pairs to my voice/data/video headend myself (ISP guy showed up, looked at my head-end, mutterred "Damn, better than I would have done," checked my up/download speeds, and left. I found out later that about half that fee covered the cost of the telco (SWB) to drop the pair to the demarc (literally connect two wires inside the demarc box that were already there) and connect it to the DSLAM at the CO, so IA wasn't exactly getting rich on that fee (and seeing their installer's expression at my headend was worth it :-).
So, sorry for the ramble, but this might be an option if your ISP is willing to play ball (like alarm companies, they can generally get dry pairs cheap, IIRC).
Re:Wouldn't it be easier... (Score:2, Informative)
Things like laying a section of fiber (say by, oh, I dunno, Qwest) requires money, money, money -- some of that money buys you permits to dig (after a long, painful battle with the city), some of that money gets you the equipment to dig, and some of that money repairs the things you cut that weren't supposed to be there when you dig (and the fines for cutting it). It can easily cost a baby Bell half a million dollars to lay a mile of fiber. It's doubtful at best that what takes a major power $500k to achieve you're going to be able to do on your own. Especially if you want it to keep working, because I don't think anybody's really going to care if they cut Joe Blow's homemade fiber run while excavating down the street.
Re:Wouldn't it be easier... (Score:2)
I remember two years back in NL everyone and their mom was putting things in the ground, officially and with permits and all, and we'd *still* get an inordinate amount of power outages, sewer leaks, cut phone lines and what not. Having a permit does not, apparently, make you competent. One time, I couldn't use my phone for an entire weekend because some cable provider had been mucking about on the sidewalk in front of my house.
Which may have been a tactic of theirs to try to get modem users to switch to cable, dunno
Re:Wouldn't it be easier... (Score:2)
Cost of DIY buried cable (Score:2)
Here in SoCal, last time I checked (about 10 years ago) the cost of buried cable, any type, was about $40/foot, assuming it could be laid in an existing easement or right-of-way that didn't charge any fees for the privilege, and went only thru level ground with no rocks. (Compared to $16/ft for overhead lines including setting the poles, but new overhead lines are now prohibited almost everywhere in California.)
At the time, the maximum distance any telephone or cable TV company would bring a new line, without making you pay by the foot, was 500 feet (vs 1500 feet for SoCal Edison). If more than 10 new homes were to be served by the same cable, then the utility companies generally picked up the cost instead.
Re:Wouldn't it be easier... (Score:2)
I'd agree, but from the looks of their setup, they have about as good as it gets when one HAS to deal with the local telco. The only thing they have is the cable, cross connect, and loops to the individual houses. Once connected by Qwest, unless the cross connects are labeled or some guy mucks around in there, it should be trouble free. The dslam and everything else is house on their premises vs. a CO and the access, power problems and high charges any independant seems to have in that situation. It should be as simple as when one used to get a private loop for alarms monitoring, etc.
Re:Wouldn't it be easier... (Score:4, Informative)
Re:Not unexpected? (Score:2)
Possibly, but as far as I could tell from the site, the co-op is currently three people -- not really critical mass for a business offering in the area.
Seems likely that Qwest is unhappy about dealing with this because they're obligated by law to "provide unbundled access" to subloops, but doesn't necessarily make money off of the deal when working on this scale.
Re:Wireless Connection Bonding (ADSL) (Score:2)
What you might be able to get away with is a single edge router machine with two NICs, each connected to the respective DSL links. With two equal cost routes to 0.0.0.0 (one for each link) you should end up with a poor-man's round-robin routing.
This is not bonding and probably a weak form a load sharing at that. Other interesting options would be some kind of policy routing (all WWW traffic on one link, everything else on the other), or start splitting up the address space an
Some guy tried to sell me a box that would do this more intelligently. It was a router-like device with like 4 or 6 ethernet connections. One side went to your firewall's output, one side went to your ISP router, and the other 2 or 4 went to presumably cheap business DSL lines.
You set a "policy" based on traffic type that sent "high priority" traffic over an expensive T1 to your ISP. "Low priority" traffic, presumably web browsing, was shunted over the DSL lines. Smarter than just round-robin routing, the box monitored traffic levels and tried to make sure that the load was balanced. I think there might have been some kind of fail-safe than ran even low priority traffic over the high-cost interface if all the low-cost interfaces were down.
Re:Killed a neighborhood Dsl (Score:3, Informative)
e.
Allready happening: Freenetworks.org (Score:3, Informative)
Re:I've been thinking of this. (Score:2)
Now, you realize that bandwidth is only a small fraction of the cost of providing your own "ISP". The real expense comes in the servers for Mail, News, etc. Plus DHCP servers and tech support. Also, you'll probably have to look at the contract that the T1 provider has and maybe even incorporate a small business to handle the expenses and distribute the billing amongst your friends.
IMHO, getting the 1's and 0's to the door is the least of the issues with an endeavor like this.