[169943] in North American Network Operators' Group
RE: Level 3 blames Internet slowdowns on Technica
daemon@ATHENA.MIT.EDU (Naslund, Steve)
Fri Mar 21 11:49:11 2014
From: "Naslund, Steve" <SNaslund@medline.com>
To: Jim Popovitch <jimpop@gmail.com>
Date: Fri, 21 Mar 2014 15:48:40 +0000
In-Reply-To: <CAGfsgR0ofbVKjg=-_oXkw6rhxH+hEmRKoijJSKveQbvZVvNmbQ@mail.gmail.com>
Cc: "nanog@nanog.org" <nanog@nanog.org>
Errors-To: nanog-bounces+nanog.discuss=bloom-picayune.mit.edu@nanog.org
What do you mean by average monthly bill? That is the issue here. The ave=
rage monthly bill includes the services you are getting. In the Chicago ar=
ea a fiber optic access circuit unbundled from the imcumbent carrier to a c=
ompetitive carrier is something like $10 a month or so. How could you poss=
ibly think you can fund a build out in a new area for that price? It may b=
e possible to pay for that over 20 years. The problem is that no one goes =
into business to break even over 20 years. Would you fund my business mode=
l if I told you I needed hundreds of millions of dollars in capital expense=
and I might show you a profit in 20 years?
How much are you willing to have added to your cable and Internet service b=
ills for the access component of the service?
Now think of this. I am the guy who owns all of the layer 1 in your area. =
What if I go out of business? What if I overcharge you? What if I charge=
$100 a month to access the infrastructure? Who fixes that. The governmen=
t regulations.=20
I think this business model existed before. It was called the Bell System =
and the only way they could pay for it was to charge you high rates for ser=
vices.
Steven Naslund
-----Original Message-----
From: Jim Popovitch [mailto:jimpop@gmail.com]=20
Sent: Friday, March 21, 2014 10:15 AM
To: Naslund, Steve
Cc: Sholes, Joshua; Larry Sheldon; nanog@nanog.org
Subject: Re: Level 3 blames Internet slowdowns on Technica
On Fri, Mar 21, 2014 at 10:25 AM, Naslund, Steve <SNaslund@medline.com> wro=
te:
> Nice idea, too bad no one can make any money on building infrastructure b=
ut not selling the services on top of it. Remember Global Crossing? You a=
re asking one company to put up all the capital expense and then try to rec=
over it by allowing access to their infrastructure to anyone at low rates. =
Not gonna work. Just on a piece of paper, figure out what it costs to get=
fiber to your neighborhood from the nearest central office and then how mu=
ch you have to charge to pay for that. If you can get a reasonable price t=
hat returns your investment within 20 years, I will be impressed.
IIRC, GLBX didn't receive taxpayer funded subsidies, nor municipal bonds, i=
n order to roll out their infrastructure.
I would gather that a fiber plant, on whole, costs less than the number of =
subscribers, multiplied by average monthly bill, and again by average lengt=
h of service.... not to mention 20 years.
-Jim P.
