[WBEL-users] What to do with idle bandwidth and processor?

Dennis Gilmore dennis at royalpublishing.com
Fri Feb 25 10:08:48 CST 2005


On Friday 25 February 2005 08:59 am, Scott Heisler wrote:

> That being said, it was the BELLs who marked the DSL as cheap as they
> do.  DSL has put mountains of ISPs out of business because the bandwidth
> to provide DSL costs more and provides less revenue than dial-up or
> business dedicated users.  I resell DSL for this reason as it was not
> possible, as a small ISP to provide DSL.  Did you know that the static
> price for the DSL line is $34.99/month.  So, if I'm charging $49.99 a
> month, I'm only making $15/month per subscriber.  Take the same model
> for dial-up.  Dial-up users pay me $15 a month and my cost is around $4.
> Dial-up users, however, only use 56k of bandwidth so if you stretch that
> out, I can provide 24 simultaneous dial-up subscribers with 100%
> bandwidth usage easily on a  T1 (which costs around $400-500 a month).
> Usually, you can double or triple this number because of the "shared"
> access dial-up user model.  In the old days, some ISPs would go as far
> as 10-to-1.  With DSL, I can only provide service to 3 or 4 dedicated
> subscribers for the same $400-500 cost for the T1.  In the shared model,
> double or triple that.. You're still at 8 or 12 subscribers.  At a
> profit of $15/month, that's only $180 a month off of 12 subscribers.
> It just doesn't make good business sense as it doesn't even cover the
> cost of the T1 line.  DSL is a looser and is much too cheap.  The only
> one that really benefits from DSL is the phone company.  Just wait,
> prices will go up once all of the competition is gone!  The end user is
> enjoying a heyday right now but that will end soon enough!  Look at the
> whole telecom industry.  How many companies are left now?  What happens
> when competition goes away?  Look at Microsoft for that answer! GREED!
> PRICE HIKES!


Actually Most ISPs implemet a 30:1 Ratio of subscribers to bandwidth for ADSL,  
Well that is acording to the ISPs i delt with in Australia and the ones ive 
delt with here in the US  even business Class DSL is not 1:1    its more like 
5:1 - 10:1   so yeah your closer to dediacted  but your not getting it.  The 
next place that your going to see competiotion is from Wireless providers.  
there they can bypass the copper  and cost associated with it.

Dennis


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