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| COVAD vs. ISPs.. Many ISPs a year or so ago when DSL was New and everyone thought that Covad was great.
Covad had all of the ISPs in competition with each other, they would tell one ISP that "Earthlink is waiving the install, you should too to stay in competition with them!" So the ISP waived the install fee, and then started waiving equipment costs..They all thought that they would make it up in the end. Covad also said if they made their "line commitments" that they would not charge the ISPs for the installs or equipment. Well in order for the ISPs to compete with the larger ISPs they had huge huge huge line commitments that they were not able to keep, so in the end Covad charged the ISPs for the installs and equipment...unfortunately the ISPs now had to pay $800.00 for the lines that they sold on top of the monthly fee. The could not go back to the end user and say.. "Sorry, we did not make our line commitment so we are going to have to charge you $800.00 for your DSL install and your equipment". We all know how well that would have gone over..So began the fall of the ISPs and Covad's Chapter 11..They just thought that they would just take the ISPs customers..that did not happen either.
Now smaller ISPs are charging for equipment and installs because they are being charged for them. It is not that the ISP is making any money off of the install and equipment, most of the time they are sold at or slightly above cost in order to cover costs. DSL is not a money maker for any ISP.. it is just a way for them to provide a service that the people want. Covad did not make this a money making adventure by any means. ISPs still make money on Domain Hosting, Dial up Connections, T-1s etc.. NOT DSL.. ISPs don’t want to charge installs or for equipment, we all think that it is a waste...as far as installs and equipment for DSL we too think it should be Free... or at least cheap.
I work for another ISP, and we have the same issues with our DSL vendors as well. We would rather sell DSL from the providers who are waiving installs and equipment charges, but sometimes Covad is IT (limited choices...try Cable that is easier to install than DSL anyway, you call them and in two days...BROADBAND!!! | |
| I am unsure as to what was the point of your long winded sentiment. Is that you expect the Clecs to waiver installation fees for the ISPs? You state,
ISPs don't want to charge installs or for equipment, we all think that it is a waste...as far as installs and equipment for DSL we too think it should be Free... or at least cheap.
So are you stating you think that Clecs, such as Covad, should absorb the cost of installation and equipment as part of doing business? What about the ISPs responsibility? I am sure Covad would be willing to make a trade-off on expenditures. The Clec will be responsible for the installation and equipment cost once the ISP starts taking the initiative. This means:
1) actually supplying the correct information for your End User. One order for an EU could take up to forty minutes in trying to resolve an address issue. This means paying a Clec employee to decipher where the DSL site is when the ISP should have provide the necessary TN and ADDR information.
2) Will the ISP ensure that there is only one attempt at the FOC date? Every time Covad submits a loop request to the Ilec, this costs the Clec over $70. Will the ISP make sure the End User is home or willing to accept the Ilec tech or will this take 4+ attempts at loop delivery?
3) When you submit a Line Share order will it have the necessary criteria to be allowed to be qualified for LineShare? That means actually asking your EU if they are with the Ilec, do they have active DSL on the line, are they the bill holder?
Every time the ISP negates to do their homework, the Clecs clean up crews spend lots of time, which means, lots of money doing the work that should have been submitted on the ISPs original order.
I can tell you work for an ISP as I have pointed out with the erroneous orders we receive from ISPs, it seems that you like to put forth before you ensure you are even correct in your information.
Here is also another thought, paying the installation fees, well maybe that is just the cost of doing service. When was the last time you got something for nothing? | | |
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| I never stated that Covad should eat the cost for the installations or equipment, and neither should the ISP. If Covad is charging the ISP $350 to $395. for equipment and $99. to $225. for installation, plus the monthly fee that cost rolls down to the end user. Every ISP that I have worked with charges the same amount for the equipment or install that Covad charges them. If they charge a little more it is to cover the cost of the order process, which like you said, can take as long as 40 min. per order. When LEC issues arise out of one order that could add more time and more staff. I have seen orders take as long as three months to install, at some point someone is loosing money on DSL...Residential DSL is not cost effective for some of the ISPs or in some cases even Covad. Unfortunately for end user who wants Covad residential DSL they will end up paying high price for it. Covad could have inexpensive DSL such as you get with DirecTV DSL, (but then with DirecTV DSL you do end up getting what you pay for.) Covad may be expensive for the end user, but it is still the best DSL service out there. The ISPs should not cover the costs for the end users, if you want DSL (Good DSL) there is a cost. | |
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