[169957] in North American Network Operators' Group
Re: Level 3 blames Internet slowdowns on Technica
daemon@ATHENA.MIT.EDU (Owen DeLong)
Fri Mar 21 15:34:21 2014
From: Owen DeLong <owen@delong.com>
In-Reply-To: <1B74B2F6-FCB1-41BC-8D65-5F32AD3B5F41@puck.nether.net>
Date: Fri, 21 Mar 2014 12:24:42 -0700
To: Jared Mauch <jared@puck.nether.net>
Cc: "nanog@nanog.org" <nanog@nanog.org>, Joe Greco <jgreco@ns.sol.net>
Errors-To: nanog-bounces+nanog.discuss=bloom-picayune.mit.edu@nanog.org
On Mar 21, 2014, at 12:13 , Jared Mauch <jared@puck.nether.net> wrote:
>=20
> On Mar 21, 2014, at 11:01 AM, Joe Greco <jgreco@ns.sol.net> wrote:
>=20
>> Why wouldn't you instead charge for the build out as a NRC and then =
charge=20
>> for maintenance as a MRC?
>=20
> I for one would be willing to bear a high NRC start-up cost for =
someone building fiber to my home. Not everyone would make that =
tradeoff. I know people who trade between the two local DSL/DOCSIS =
incumbents every year because it's $5 cheaper/mo to get the next =
12-month deal as a switcher. While their time may not be worth =
($5*12)/hour to account for this minimal switching cost, it's certainly =
a real economic cost if you're waiting for a 4 hour window for a tech to =
show-up and do an install.
>=20
> aside:
>=20
> I recently got natural gas at my home, the install cost was something =
like $2k, the utility had an option, pay an extra $27/mo for however =
many months, or pay the $2k up-front. Some folks can't absorb a cost =
like that, others can. I've heard from FTTH providers their install =
cost is in that same ballpark. Really wish they would have been able to =
pull fiber at the same time as the HDPE. The fact that it was a =
contractor as well certainly means they could run a side-business =
building their own fiber using the other utility as the main seed-money =
and have a wholesale fiber network for "cheap".
>=20
> - Jared
Which is why, in many cases, the most plausible solution is something =
like muni fiber where the infrastructure is rolled out as many initial =
public utility builds with tax dollars and/or government bonds, then =
operated on a cost-recovery basis where the costs considered include =
both operating and bond-repayment. All L2+ service providers are given =
equal pricing and access to any subscribers that choose to sign up.
Nothing wrong with $27/month for 'however many months' so long as =
'however many months' doesn't exceed about 9 years (108 months =3D =
2,916, which I believe approximates reasonable interest for the period =
in question). If it's $27/month in perpetuity, however, then that's as =
disingenuous as cellular rates that include phones and is the kind of =
pricing distortion that people are complaining about.
Owen
