[169948] in North American Network Operators' Group
Re: Level 3 blames Internet slowdowns on Technica
daemon@ATHENA.MIT.EDU (Keegan Holley)
Fri Mar 21 14:06:16 2014
From: Keegan Holley <no.spam@comcast.net>
In-Reply-To: <9578293AE169674F9A048B2BC9A081B4B5420CA4@MUNPRDMBXA1.medline.com>
Date: Fri, 21 Mar 2014 14:06:07 -0400
To: "Naslund, Steve" <SNaslund@medline.com>
Cc: "nanog@nanog.org" <nanog@nanog.org>
Errors-To: nanog-bounces+nanog.discuss=bloom-picayune.mit.edu@nanog.org
On Mar 21, 2014, at 12:13 PM, Naslund, Steve <SNaslund@medline.com> =
wrote:
> We don't know because the service provider rolls that cost up along =
with the services they sell. That is my point. They are able to spread =
the costs out based on the profitable services they sell. If they were =
not able to sell us services I am not sure they could afford to provide =
that infrastructure.
Monthly fees do much more than finance the cost of infrastructure. Most =
large providers take a significant margin. It=92s all about how these =
services are perceived. The preservation of this margin is the number =
one reason why internet access isn=92t considered a utility or a basic =
right today. It also allows prices to increase unchecked, based on =
nothing other than the goals of specific companies.=20
There are many places where infrastructure is subsidized and controlled =
by the government. To them some things are more important than the need =
to make markets. They just trust that the overall benefit to society is =
worth modifying the market.
> In fact, having been a service provider I can tell you that I paid =
the LEC about $4 a month for a copper pair to your house to sell DSL =
service at around ten times that cost. I am sure the LEC was not making =
money at the $4 a month and I know I could not fund a build out for that =
price.
Being a LEC is more profitable than anything else because they control =
the prices. If you found an iLEC that charged $4 for something worth =
$40 that doesn=92t mean being a LEC isn=92t profitable. After the =
long-distance carriers were forced to divest from local the LEC=92s grew =
and quickly bought them. It=92s more profitable to be a LEC than to =
resell their services. The only large carriers left are former LEC=92s =
AKA baby bells.
>=20
> -----Original Message-----
> From: Jim Popovitch [mailto:jimpop@gmail.com]=20
> Sent: Friday, March 21, 2014 11:07 AM
> To: Naslund, Steve
> Cc: Sholes, Joshua; Larry Sheldon; nanog@nanog.org
> Subject: Re: Level 3 blames Internet slowdowns on Technica
>=20
> On Fri, Mar 21, 2014 at 11:48 AM, Naslund, Steve =
<SNaslund@medline.com> wrote:
>> What do you mean by average monthly bill?
>=20
> What is the average monthly (non-subsidized) access cost that your =
friends and family pay each month?
>=20
> -Jim P.
>=20
