[8301] in Commercialization & Privatization of the Internet
Re: Net Access/Service Providers
daemon@ATHENA.MIT.EDU (Ed Tully)
Sat Nov 13 00:50:33 1993
From: tully@cscns.com (Ed Tully)
To: postman@lists.psi.com (Miles R Fidelman)
Date: Fri, 12 Nov 93 22:47:54 MST
Cc: sharilee@aol.com, com-priv@psi.com
In-Reply-To: <Pine.3.87.9311122206.A29285-0100000@world.std.com>; from "Miles R Fidelman" at Nov 12, 93 10:56 pm
Miles F. wrote
>
> just as a benchmark: it costs MIT about $100k per year for their
> connection into the Internet through NEARnet (I believe they have two 10mb
> microwave links) -- at 10,000 desktops on the campus network, that comes
> out to 83 cents/per desktop/month! -- MIT charges internal users a $300
> one-time connection fee to the campus net, and $20/month thereafter -- so,
> the cost of campus networking is $19.17/month, or just about the cost of a
> residential phone line or a basic capble tv service (note: the average
> bit rate available to a desktop it pretty low when you divide it out, but
> the peak rate is 10mb, which is what really counts)
I missed someting here. Can you tell me where the $19.17 comes from?
>
> now: the current cost for a 56kb full-period Internet link to a site is
> around $1000/month and a dedicated SLIP port is $200/month plus the
> dialup costs ($.90/hour, say $90 for 100 hours - for a total of $290/mo.)
>
> there's a big gap between $20/month and $290/mo. and between $290/mo. and
> $1000/mo.
>
> since I don't think it costs that much more to provide metropolitan area
> service over campus area service, there's a lot of money from smaller
> sites being split right now between local telcos and Internet providors
The difference is the campus is a captive audience and marketing costs are
minimum. And there are a large number of users within a short period of
time. and they don't have to borrow money to get going. And they get
"free" support from students on campus.
>
> the entrepreneurial profit is in bringing the cost/user/month for small
> sites down towards the $20/user/month currently achieved at larger sites
I agree that is the target - we just have not figured out how to do that.
If there were more metro area participation, I think it is possible. Maybe.
>
> one example of people getting ready to do this is the Continental
> Cablevision / PSI deal, which will bring 24-hour Internet service to
> cable tv taps at under $100/user/month
>
Why should it be that high? the cable is there - it is old plant and has
been paid for several times and then again- the return amp is less than
$150. The "modem" at the customer site is about $200 in quantity. Why is the
price so high? New toy?
> **************************************************************************
> Miles R. Fidelman mfidelman@civicnet.org
> Executive Director 91 Baldwin St. Charlestown MA 02129
> The Center for Civic Networking 617-241-9205 fax: 617-241-5064
>
--
Edward J. Tully
Network Training & Consulting
Community News Service
Colorado Springs, CO
