John:

We are only moving ahead with additional CO collocates under very specific 
circumstances.

1)  We already have a sufficient volume of customers from that CO to justify 
the expense.
2)  Backhaul can be obtained affordably
3)  Any other tangible benefits from that CO that could be of value to us as a 
CLEC

With regards to your point 2 at the bottom, we don't pay the ILEC to get out of 
the CO in any of our CO collocates and in one case we build our own dark fibre. 
 In that case the "cable management fees" that you refer to were very 
affordable.

Bill

> -----Original Message-----
> From: John Lange [mailto:j...@johnlange.ca]
> Sent: Wednesday, December 22, 2010 1:23 PM
> To: Bill Sandiford
> Cc: TAUG Technical
> Subject: Re: [on-asterisk] Asterisk & 1 Gigabit Internet.
> 
> On Wed, Dec 22, 2010 at 10:57 AM, Bill Sandiford
> <b...@telnetcommunications.com> wrote:
> > The big cost is the exorbitant fees they charge just to setup your
> colo area.
> 
> You could file a Part VII with the CRTC requesting that they review
> and vary the charges. Have any competitive DSL providers tried that?
> Problem is all the costing is submitted to the CRTC in secret so it's
> pretty hard to challenge anything.
> 
> > As for your last point, yes you are correct.  That is what I was
> talking about when I referred to only being able to reach approximately
> 25% of our target market from the CO.
> 
> I'm surprised to hear that you are moving ahead with co-lo DSLAM given
> that percentage of customers will continue to decline. Is there
> something in place that will allow you access to the pedestal in the
> future? Bell could turn around tomorrow and convert all their peds to
> DSLAMs with fibre and you'd be screwed.
> 
> Co-Lo DSLAM (along with Third Party Access for cable & DSL) was the
> CRTC's original vision for competition in broadband. Largely it has
> failed for the following reasons:
> 
> 1) CRTC allowed the ILECs & Cable Co's to set the above mentioned
> insane setup and co-lo charges. This might not have been a show
> stopper if companies were able to get foreign investment but alas,
> Canada does not allow it.
> 
> 2) Even if you do invest in a co-lo DSLAM, the only way to get the
> traffic out is to buy access from the ILEC and this is unregulated.
> Even if you ran your own fibre, you still have to pay insane monthly
> "cable management" fees. On top of that, in most places in the country
> there are only 2 ways to the internet, the ILEC or the Cable co. so
> you pay them again.
> 
> It's an impossible business model which is why virtually nobody is
> doing it.
> 
> --
> John Lange
> www.johnlange.ca

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