[133632] in North American Network Operators' Group
Re: Some truth about Comcast - WikiLeaks style
daemon@ATHENA.MIT.EDU (Jared Mauch)
Tue Dec 14 21:24:33 2010
From: Jared Mauch <jared@puck.nether.net>
In-Reply-To: <4D0804C8.60508@rollernet.us>
Date: Tue, 14 Dec 2010 21:24:23 -0500
To: Seth Mattinen <sethm@rollernet.us>
Cc: nanog@nanog.org
Errors-To: nanog-bounces+nanog.discuss=bloom-picayune.mit.edu@nanog.org
On Dec 14, 2010, at 6:59 PM, Seth Mattinen wrote:
> I just see this as a natural progression of what happens of a single
> player with a captive audience due to mergers and attrition. They know
> their customers aren't going anywhere. The only way to "fix" it would =
be
> to go back to the days when there were a bunch of competing local =
providers.
This requires one or more of the following:
o regulatory action
o last mile regulation or competitive access
o subsidies for new players
o massive capital outlays
o state laws changed in various markets
o reformation of USF
o changes at NTIA
o changes at USDA (RUS)
I'll once again use my example of the verizon assets going to fairpoint. =
it shows that the costs are significant.
I can get a 10G across an ocean for cheaper than I can get one delivered =
over a 1 mile distance in a neighborhood.
I do believe that FTTH will eventually become the solution to all the =
edge network ills, but at the same time, replacing that costs a lot of =
money.
Take a look at this article from 2008 - =
http://bits.blogs.nytimes.com/2008/08/19/a-bear-speaks-why-verizons-pricey=
-fios-bet-wont-pay-off/
"Here is how Mr. Moffett looks at the costs of the plan that Verizon has =
announced for FiOS. Through 2010 the company will pay an average of $817 =
to run the fiber past the 19 million homes, on poles or under the =
ground. It will also incur $172 per home passed in other costs related =
to the video infrastructure. He assumes that 40 percent of the customers =
passed will buy at least one FiOS service. If you allocate the cost of =
running the fiber past the homes that don=92t buy FiOS to those that do, =
that makes the cost of building the network $2,473 per home. (That cost =
would be less if more than 40 percent of the potential customers sign =
up. Or it could be higher, if sales don=92t achieve the 40 percent =
level.)"
If you are willing to pay $2500 to have service installed, I'm sure the =
incumbents would be jumping at you. Instead, these are often regulated, =
last I recall in Michigan it was $42/line, even if they had to trench a =
quarter mile to reach you.. or if they just tested the existing copper =
to your home. This masks the actual costs.
- Jared=
