On Thu, 2005-08-11 at 18:00 -0400, [EMAIL PROTECTED] wrote: 
> On Thu, 11 Aug 2005, dopry wrote:
> 
> > The FCC didn't necessarily kill wholesale DSL. They rules that ILEC no
> > longer have to provide access to their wireline broadband services.
> > Wireline broadband services being bundled layer2 or layer3 network
> > access and a physical line. It doesn't impact Unbundled Network
> > Elements(UNE-L), the physical lines. As long as you're running your own
> > DSLAM's you should be in the clear.
> I think you should see that it is a matter of time before UNE-L goes the
> way of UNE-P and line-sharing, with this FCC.

Let me maintain some optimism... I thought the hopes behind dropping
UNE-P was to get CLEC's to build out their own facilities using the
existing copper via UNE-L to get the ILEC's to stop complaining about
costs and how they can't compete with cable. I guess it is a logical
progression once the CLEC's have their own facilities. 

> > It doesn't really change the broadband landscape that much. Covad and
> > their resellers are safe and secure. The independents running their own
> > DSLAMS and providing T1 are ok.. Verizon will probably let their
> > existing resellers sit pretty.
> 
> a) Verizon may or may not let their resellers (or rather, partner ISPs 
> like us) to sit pretty. Right now, we are sitting nervous.

I guess I can see that. I figure if verizon really wanted to when your
contract term is up they could just consume your userbase, and cut out
the middleman... It may seem unethical, but as long as it doesn't break
any laws or breach any contracts it is about the Quarterlies.

> b) Covad isn't sitting all that pretty. Covad executed "commercial 
> agreements" with ILECs allowing them to continue to do line-sharing at a 
> cost that is substantially higher than their previous line-sharing cost. 
> Despite what you think, a minority of covad lines are UNE-L (non-shared).

I was unaware of that... Do you have a link to more info that I could
read up on? I'm a step farther out than you in covad territory...

> > FTTH is my real concern. Existing regulation only applies to the copper
> > plant, unless I've missed something in recent history. Incumbents do not
> > have to share access to their fiber networks. Hopefully they will to
> > help fulfill capacity and utilization, but that is a hope.  While
> > Francois Menard alludes to pricing wars preventing municipalities from
> > enter the FTTH race, I think it is unfounded, currently incumbent
> > pricing is below cost for independent ISP's when scale is considered*. I
> > don't think municipalities want to get involved in the expenses of
> > rolling out or maintaining a fiber infrastructure, and Verizon will beat
> > them to the chase anyway.
> > 
> > I do however see this as a nod from the FCC to FTTH and Cable carriers,
> > to go on their merry way and not to worry, their lobbying dollars have
> > worked and they can move everything onto an IP platform without worry of
> > having it yanked out from underneath them in the short term.
> Pretty much.
> 
> > verizon's introductory DSL offer is ~324/yr / user provides up to
> > 3Mbps/768Kbps depending on what your line will carry
> > 
> > access costs for a thousand users is ~60/yr(line) + ~156/yr(bandwidth) 
> >     -$5/month/user UNE access
> >     -13K/mo or $13/user/mo for a gige connection from HE.net
> > so total access costs/mo is about $216...
> Your math is completely confused. Where'd you take "5$/month/user UNE 
> access" number from? If you think "line sharing UNE" - that's *gone*. Now, 
> you have to pay for UNE-L, which is 20+$/month.

I pulled it out of my arse of course... Now I know, and knowing is half
the battle. 

I thought UNE-P was more expensive since it included both the loop and
the port, and UNE-L was just the copper loop. But UNE-P pricing was avg
10-15/mo/port in NYC area circa 2004.

> Also, you need only ~25-50Mbps of internet bandwidth to serve 1000 users 
> (surprising but true.)

I was just going on a guaranteed bandwidth kind of idea... but I didn't
realize the ratio was in the area of 20-40:1. I guess it makes sense
with http browsing habits and the fact that all users won't be online
all the time.

I guess even with your corrections you're only looking at 100-200K
revenue per year with UNE-P and even less with current UNE-L pricing...
I think It still supports the fact that ILECS are pricing below
competitor costs when scale is considered, except a few large ISPs.

........

now I'm worried... Thanks for pointing out the pale horse alex..
I always appreciate it when you share your knowledge and opinions. 

.darrel.

  

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