To sum it up.... Location, location, location.
:) Bob- -----Original Message----- From: wireless-boun...@wispa.org [mailto:wireless-boun...@wispa.org] On Behalf Of Fred Goldstein Sent: Tuesday, July 20, 2010 7:56 PM To: WISPA General List; WISPA General List Subject: Re: [WISPA] What if you can't get a T3? At 7/20/2010 06:57 PM, Faisal Imtiaz wrote: >I have been quietly watching this discussion.... > >I don't claim to be an expert, but being a wire line ISP, let me add / >clarify some thoughts / facts .... > >T1 / T3 or DS3 / OC3 are all TDM / Legacy services........ That really shouldn't matter. The price of the equipment needed to generate those services, other than the outside plant cable (glass or copper), has plummeted in recent years. Even OC-48 gear now costs approximately bo diddley. Hence the recurring price for a local, in-city SONET circuit from a Bell is typically about the same as their total capital cost, paid every month or two. The installation cost of the circuit is added to the NRC or TLA so they can't lose. Nice work if you can get it, being an unregulated monopoly in a vital field. >T1, can be extended (long distance) via field repeaters... (T1's are >based on HDSL technology and go about 12000ft from the CO or Repeater.) >T3/DS3 are peeled off OC3 or Sonet (optical) Muxes....These are larger >expensive pieces of equipment that require a lot of power and are fiber fed. The stuff they pulled in the '90s was relatively expensive. Nowadays you can get an OC-3 or OC-12 Adtran or Fujitsu fiber MSPP (line terminal, mux, DACS) for around $10k, depending on the line card count, and it eats one or two amps. Cheap optics can go about 50 miles without amplification. However, the prices Bells charge for Special Access (regulated DS1, DS3) fall into one of two categories. In most metro areas, they are unregulated; the Bell can create its own price list. (SBC/ATT had a 3-year merger condition to lower rates a smidgen; that just expired and most rates have skyrocketed.) In other areas, they're price capped, where the caps are based on 1992's tariffs. Those pre-Internet rates were set when 56 kbps was considered a lightning-fast backbone data circuit. The price per DS0 was supposed to recover the lost toll revenues of leased voice tie lines. It's not based on cost. Did I mention that being a monopoly can be nice work if you can get it? >While all of the legacy TDM services are regulated (i.e the price is >disclosed on a tariff) but the ILEC is allowed to recover build out >costs... these costs are high, in addition, the ILEC's are also aware >that these High Cap transports are used by other Competitors and as >such exercise full discretion on discouraging purchase of these >circuits, by using extra inflated build out costs, and if you agree to >pay that, then the 2nd option they use is extra extra long build out >time schedule... 9 to 12 months easy. Yes, it's how ATT and VZ are putting the squeeze on Sprint, T-Mobile, and their other non-ILEC competitors while favoring their own wireless carriers. Dial tone is a shrinking business; Special Access is making up for it in spades, with typical rates of return over 100%. >... >The most cost effective form of transport that an ISP / WISP can >purchase from a Carrier (ILEC or Cable Co or another type of provider) >would be Ethernet ...... >100Meg or Gig E.... While these are un-regulated services, which means >an ILEC's can exercise their discretion on providing this type of >service to you and I or another Carrier.... however in many places >(typically office buildings in a metro downtown area) would have >equipment / fiber already installed that they can deliver the service >at that location. In a major city, like say Miami, you can often get Carrier Ethernet from a non-ILEC, into major buildings. But even there, the price into other buildings is very high. Last year I asked Verizon for a quote within Boston. The "on-net" price, where VZB had its own fiber, was very reasonable. But to go across the street to an off-net building, VZB would have to hand off service to VZ Core, who would sell a Special Access DS3 to carry the 10Mbps Ethernet. That was several thousand dollars/month for a local loop. But the vast majority of WISPs are in rural areas, where there are no such choices. That's why Special Access reform is so important. -- Fred Goldstein k1io fgoldstein "at" ionary.com ionary Consulting http://www.ionary.com/ +1 617 795 2701 ---------------------------------------------------------------------------- ---- WISPA Wants You! Join today! http://signup.wispa.org/ ---------------------------------------------------------------------------- ---- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/ -------------------------------------------------------------------------------- WISPA Wants You! Join today! http://signup.wispa.org/ -------------------------------------------------------------------------------- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/
