" Other figures from research firms like Forrester
show that only about 40% of Americans have high-speed connections at
home, 30% rely on dial-up and 25% don’t have any Internet connections at

I do not disagree with those statistics. I disagree with your statement that most DialUp users are DialUp users by choice, and that most people that don't have Internet are doing so by choice. The facts are, 60% of America is under served, which is both embaressing for the US, and a call for opportunity. In todays world, there is justification for every home in America to have broadband and to have a computer. Not having a computer, is no longer a valid arguement. Even the most impoverished homes, can manage to budget to buy a $300 computer from BestBuy, that includes monitor and printer. Or for that matter to get a FREE used donated computer. A pentium pc, does Broadband fine (although slow and problematic). The reason people do not buy broadband, is NOT price. It doesn't need to be cheaper. There is already cost justification, the end user just doesn't always realize it at first. Understanding that the Average DialUp user is paying $35 a month already (line and service). The problem is that broadband is to cheap. So large players can't justify expansion into lower profit centers, by subsidees of higher paying subs. The problem is that users DO NOT HAVE OPTIONS. USERS HAVE NOT BEEN SOLICITED WITH PROPER SALES AND MARKETING TO CONVINCE THEM THEY NEED IT, BECAUE IT IS POINTLESS WHEN IT IS NOT AVAILABLE.

One of the biggest mistakes I made in this industry, which I am paying for now dearly, is I did not recognize the market. I was bold, ambitious, and competitive, and wanted to prove I was good as any one else, and hit the competition head on in their prime territory. Its not about win or loose, I often won. The issue is its a hard war and a peric victory. What I didn't realize is that the under served market was actually the larger market over the "tier1 prime market". 60% underserved, 40% served. Why in the world did I decide to go after the smaller market with more competition? This is the only reason, that DIAL UP providers still hold half the US's Internet traffic, providers are stupid, and don't properly identify the gravy when its already stearing them in the face at the table. In my defense, I have the excuse that I live in a Urban Tier 1 market.

This is why "WIRELESS" is such an exciting play today. We have a completely different economics and different set of limitations and criteria than wireline providers. We often can do well what they can't, although limited in other areas that they do well.

Wireless on the other hand, is still to expensive on a individual level, to replace Dial Up. The cable isn't already there, we need to actually deploy something, and wireless companies do not yet have the same support structure that monopolies and utilities have. I'd argue that under served America is NOT the fault or choice of consumers, it is the CLEAR undisputed failure of Governement officials and legislators and wireless manufacturers. The manufacturers have an excuse, they don't want to risk money on a potential business model, when the industry has zero support by the governement. It important not to confuse what I am saying, this is NOT a request for Muni broadband. The problem is that somewhere along the line, the Governement decided that it is no longer necessary to support small business. Set up programs that gives it all to the goliath companies. They'd rather develop programs to support a super company, than thousands of companies that could work togeather to create a greater more efficient army. Everyone wants Earthlink. Yeah, thats going to be fast, as they all wait in line for the same company. Forgetting that the people that want to bring broadband to the underserved with a vengence are the ones that live their and know the deficiency and market exists. Any way you slice it, a small local company can deliver service more accurately and quickly, and more sincerity for quality, for all the advantages that the local provider possesses. Sometimes I wish our governement was run by Pre-Schoolers, because even they get it, and are tought the principles early on. You don't hire a giant, to crawl into a tiny crawl space, they don't fit, no matter how big and strong they are. Its OK to be small.

The truth is a broad statistical survey will never bring out the true feelings of all the people needing served. Small samples do not adequately find the holes full of frustrated people. Your local provider know who these people are. What the country needs is not governements facilitating exclusivity in exchange for incouraging third party investment in their communities, to put their local community professionals in the field out of the business. What this country needs is powerful support for the small local company. Every local government should be asking themselves, "who is in town" and "how many of them can we help" and "in what way". Because these are the guys that care about their local town, and know their towns first hand.
The day this happens, the politics and public deception will be over.

It will take a long time for the small independant provider to tackle the problem alone. But if the governement had the guts to start spending consumers tax dollars to help the army of small providers help the consumers, it could happen a lot faster. They need to stop begging money and help from the big companies, and use tax dollars whats it for, helping the people. If they spent just a fraction of what they budget for Public Safety and Homeland security, to help small providers, the problem would be solved. Dial Users would quickly start to switch to their friendly local broadband provider. The problem today, is the Urban is handled by default, RUS handles the lowest 1% of the market, but the other 59% of them go unrepresented.

If the small providers had the help, they could easilly do the volume that is needed to encourage manufacturers to built better cheaper gear. And with better cheaper gear, ISPs could develop value propositions to make broadband affordable to convert Dial Up from.

Tom DeReggi
RapidDSL & Wireless, Inc
IntAirNet- Fixed Wireless Broadband

----- Original Message ----- From: "Peter R." <[EMAIL PROTECTED]>
To: "WISPA General List" <>
Sent: Wednesday, September 20, 2006 9:58 AM
Subject: Re: [WISPA] Lack of Competition

Which stat don't you like Tom?

The PEW Report:
"As of May-June 2005, 68% of American adults, or about 137 million people, use the internet, up from 63% one year ago. Thirty-two percent of American adults, or about 65 million people, do not use the internet and not always by choice. Certain groups continue to lag in their internet adoption, including Americans age 65 and older, African-
Americans, and those with less education."

Numbers vary depending on the poll/survey/source.

From America's Network:

"Some 62 million Americans are still using their telephone lines to dial into the Internet, according to recent figures from the Pew Internet and American Life Project. Other figures from research firms like Forrester show that only about 40% of Americans have high-speed connections at home, 30% rely on dial-up and 25% don’t have any Internet connections at all!"

So how come the US is lagging behind most of the developed world in broadband access? Some analysts cite price as a factor, but that seems doubtful. DSL deals from Verizon and ATT often are priced below monthly dial-up rates, and millions of cable television customers can get cable-modem service packaged at a discount with their TV and phone service. So why stick with slow dialup?

The main problem seems to be the free-market telecom frenzy that has enveloped the US (and much of its population) in technology and price uncertainty. With no national broadband policy in place, multiple service providers are targeting affluent urban areas, while leaving many poor and rural dwellers to fend for themselves. In big cities, that means consumers face daunting broadband choices. Should they sign a contract with their cable provider or telco? Wait for the installation of a Wi-Fi network? Choose an alternate provider like EarthLink? And which broadband technology is the best? Many just stick with what they know best: the slow but reliable telephone.

Even the service providers themselves are confused. A plan by the city of West Hollywood, Calif. to install Wi-Fi has stalled for two years because the local utility company can’t decide whether to grant a right-of-way for the equipment on its lampposts.

Inevitably, this is going to change, but the change would come much more quickly if a national policy and direction were put into place, consumers knew what to expect and the service providers better focused their efforts. Until then, Americans will have another reason to worry about the rise of China.


Doesn't matter if you like or believe the numbers. The fact is that Broadband growth has stalled. So ISPs have to find out why (fear, tired on PC troubles, too much crap, don't need the internet, no PC to use) in order to have growth in those flattened or no-growth areas.

- Peter

Tom DeReggi wrote:


I do not agree with those statistics.
Why would anyone prefer DialUp for the same price? Don't think so.
A large part of that 68% are DialUp Users NOT by choice.

Tom DeReggi
RapidDSL & Wireless, Inc
IntAirNet- Fixed Wireless Broadband

----- Original Message ----- From: "George Rogato" <[EMAIL PROTECTED]>
To: <[EMAIL PROTECTED]>; "WISPA General List" <>
Sent: Monday, September 18, 2006 7:49 PM
Subject: Re: [WISPA] Lack of Competition Leaves U.S.16th Among IndustrializedNations

Peter R. wrote:

We are actually at the point where about 68% of the US population has Internet.
The rest don't own a computer or do not want Internet.

Some of that 68% is still on dial-up. For some it is a price thing. For some it is not understanding technology. For some it is to make the experience painful to avoid wasting hours on the internet.

So dropping the price - as SBC and VZ have experienced - to sub-$15 gets you some dial-up conversions. But when the price returns to normal, some switch back to cheaper dial-up.

The dilemma becomes How do you get more internet appliance (PC's, laptops, PDAs, internet terminal) penetration?

The marketing question is: What Remarkable & Useful things can you do with broadband (other than entertainment)?

That's my 2 cents.

Peter @ RAD-INFO, Inc.

WISPA Wireless List:



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