[LUAU] Fwd: [Arch-econ] Postponing the Internet Cafe Dream

Mon Jan 28 19:29:39 PST 2008

>>>>> SureWest, in the Sacramento area of California, charges $259.95
>>>>> for a symmetrical 50M Internet connection. Verizon currently  
>>>>> lists 30/15
>>>>> as its fastest regularly available for $159.95 (although it hints
>>>>> that a 50/20 service might be available in some areas). That  
>>>>> price is for
>>>>> month-to-month; lower prices, are available for one-year terms or
>>>>> when combined with video services.

taking the hindmost... Hawaii...

Begin forwarded message:

> From: "Savage, Christopher" <ChrisSavage at dwt.com>
> Date: January 28, 2008 5:18:04 PM HST
> To: "Economics of IP Networks" <arch-econ at cookreport.com>
> Subject: Re: [Arch-econ] Postponing the Internet Cafe Dream
> Reply-To: Economics of IP Networks <arch-econ at cookreport.com>
>
> This reminds me of an analysis I did a year or so back for the  
> Wyoming Telecommunications Council.
>
> I think I figured out that you could link a POP in all the towns in  
> Wyoming with > 1000 people with fiber back to a point well on the  
> way to the "real" Internet in Denver (I think I took it to Cheyenne)  
> for something like $55 million in cap-ex.  Which is less than 1/10  
> of what Wyoming spends annually on brick-and-mortar (ok, asphalt &  
> concrete) roads.
>
> My "business model," such as it was, was that between cable and DSL  
> there was plenty of activity at the local connectivity level; the  
> problem was feeding all those local POPs with "real" Internet  
> connectivity.
>
> There really seems to be a pump priming issue here, or something.
>
> Chris S.
>
>
>
> ________________________________
>
> From: arch-econ-bounces at cookreport.com on behalf of Rollie Cole
> Sent: Mon 1/28/2008 10:03 PM
> To: Economics of IP Networks
> Subject: Re: [Arch-econ] Postponing the Internet Cafe Dream
>
>
>
> I am reminded of two things I have mentioned on the list before:
>
> 1. The St. Joe Valley Metronet was organized because Notre Dame's
> lowest bid (in South Bend IN) for Internet connectivity was an order
> of magnitude higher than Northwestern's highest bid (in Chicago IL).
> Sometimes, for some things, big cities are cheaper..... Notre Dame
> joined with the city and a major hospital to create its own ring
> (actually 5 of them) and then put the whole thing out to bid and got a
> much, much better deal. But no FTTH as of yet.
>
> 2. Our friends in British Columbia have learned that they get a much
> better deal on connections back to Vancouver or Seattle if they first
> put together the community network and then bid it as a whole, rather
> than having individual firms, let alone individuals, try to connect
> alone.
>
> I was hoping to repeat the idea on a much smaller scale (say 9 friends
> and me), but at the moment, in my city, the economics do not scale
> down that far. But technology and economics IMHO continue to march in
> the right direction, so maybe someday.....
>
> Rollie
>
> On Jan 28, 2008 9:14 PM, Tom Hertz <thertz at fiberutilities.com> wrote:
>>> . . . is it not a shame that no one can find the money for the
>>> commons back bone that would have allowed community networks to  
>>> get to
>> these big city peering points cheaply?
>>
>>
>> Stay tuned . . .
>>
>>
>> Tom Hertz
>> Fiberutilities Group, LLC
>> thertz at fiberutilities.com
>> 605.660.5884
>>
>>
>>
>>
>>
>> On Jan 28, 2008, at 8:06 PM, Gordon Cook wrote:
>>
>>> well tom  is it not a shame that no one can find the money for the
>>> commons back bone that would have allowed community networks to  
>>> get to
>>> these big city peering points cheaply?
>>>
>>> Folk involved on all sides of that proposal will be at the cook-in
>>> =============================================================
>>> The COOK Report on Internet Protocol, 609 882-2572 (PSTN) 415  
>>> 651-4147
>>> (Lingo) Back Issues: http://www.cookreport.com/ <https://dwtowa02.dwt.com/get/uri/http://www.cookreport.com/ 
>>> >
>>> browse_past_free2.shtml   Cook's Collaborative Edge Blog http://gordoncook.net/wp/ 
>>>  <https://dwtowa02.dwt.com/get/uri/http://gordoncook.net/wp/>
>>>   Subscription info: http://cookreport.com/subscriptions.shtml <https://dwtowa02.dwt.com/get/uri/http://cookreport.com/subscriptions.shtml 
>>> >
>>> =============================================================
>>>
>>>
>>>
>>>
>>> On Jan 28, 2008, at 8:50 PM, Tom Hertz wrote:
>>>
>>>> Prices in big metro's at a POP are under $20/Mb for Internet for  
>>>> most
>>>> everyone buying at per Gb ports; getting to a POP is easy and cheap
>>>> for carriers (including the small rural ones).  Some larger buys  
>>>> are
>>>> under $10/Mb.   And op-ex costs are "not so much." Very profitable
>>>> business this is.
>>>>
>>>>
>>>>
>>>> Tom Hertz
>>>> Fiberutilities Group, LLC
>>>> thertz at fiberutilities.com
>>>> 605.660.5884
>>>>
>>>>
>>>>
>>>>
>>>> On Jan 28, 2008, at 3:31 PM, Rollie Cole wrote:
>>>>
>>>>> Well, I finally got a call back from Indiana Fiber Network  
>>>>> relative
>>>>> to
>>>>> my dream of a "private Internet cafe without the coffee" for my
>>>>> neighbors and me. I can have a symmetrical 100 Mbps connection to
>>>>> the
>>>>> Internet, virtually anywhere in the city of Indianapolis that I
>>>>> want,
>>>>> for a mere $8,000/month. If I can live with 25 Mbps, the price is
>>>>> only
>>>>> $4,000/month. Sounds like T1 prices of a few years ago.
>>>>>
>>>>> On the other hand, the Glasgow, KY system that will charge $300/
>>>>> month
>>>>> for a point-to-point 100 Mbps, wants $175/MB/month for Internet
>>>>> connectivity, which for 100 Mbps Internet would be $17,500 (plus
>>>>> $300
>>>>> of course).  I wonder if some arbitrage might work -- how many
>>>>> $300/month local-to-local sites could share one Internet  
>>>>> connection,
>>>>> both physically and legally?
>>>>>
>>>>> SureWest, in the Sacramento area of California, charges $259.95
>>>>> for a
>>>>> symmetrical 50M Internet connection. Verizon currently lists 30/15
>>>>> as
>>>>> its fastest regularly available for $159.95 (although it hints
>>>>> that a
>>>>> 50/20 service might be available in some areas). That price is for
>>>>> month-to-month; lower prices, are available for one-year terms or
>>>>> when
>>>>> combined with video services.
>>>>> http://www22.verizon.com/content/consumerfios/packages+and+prices/packages+and+prices.htm 
>>>>>  <https://dwtowa02.dwt.com/get/uri/http://www22.verizon.com/content/consumerfios/packages+and+prices/packages+and+prices.htm 
>>>>> >
>>>>>
>>>>> None of these are close to European or Asian prices, of course.  
>>>>> But
>>>>> the Indianapolis deal shows how far we have to go. Sigh......
>>>>>
>>>>> --
>>>>> Rollie Cole
>>>>> 5315 Washington Blvd
>>>>> Indianapolis, IN 46220-3062
>>>>> 317-727-8940
>>>>>
>>>>> _______________________________________________
>>>>> Arch-econ mailing list
>>>>> Arch-econ at cookreport.com
>>>>>
>>>>
>>>>
>>>>
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>
>
>
> --
> Rollie Cole
> 5315 Washington Blvd
> Indianapolis, IN 46220-3062
> 317-727-8940
>
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