SSidlov
Other Things On My Mind
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join:2000-03-03
Pompton Lakes, NJ
 ·Optimum Online
 ·Cingular Wireless
| Re: All ISPS Marginal said by jc100  :Most isps suck. We're paying 5x the cost of many countries with 50x the bandwidth. Isps in American simply give the least amount of service for the highest price they can offer. This is not a rational statement. When looking at pure won to dollars or yen to dollars it might be true, the per capita income of the areas are not comparable. Using a per capita income basis the costs are comparable. Here are the facts and I'll use So. Korea as the comparison as it's one of the fastest broadband sites in the world.
1. The infrastructure in So Korea (around 39Ksq mile) is only 13Kmiles long. West Virginia (around 24.5Ksq miles) is going to be wired with 3X that amount by Verizon. Verizon is cherry picking areas so, reaching everyone in West Virgina may take considerably more cable.
2. That infrastructure was funded by the So Korean government. They lease the 90% overbuild to the ISPs. Cost comparisons to the US are not valid.
3. Metro SEOUL is were more than 48% of the entire country of So Korea lives-- the second highest density city in the world. The most dense US city metro area is the NY Metro area (#4 and that's So. Conn to North Jersey) but it's less than 10% of the entire US's population. But, it's 50% bigger than the metro Seoul area. It has 50% less population per sq mile. The number of people passed per mile are significantly less a significant issue for costs.
4. Let's compare the two areas, the densest US and So Korea's city's broadband services.
a: 70% of the metro NY is serviced by Cablevision using a hybrid coax and fiber network. It's 34Kmiles long. Almost 3 times the size of So Korea's fiber network and Cablevision paid for it. While CV does service NYC's outer boroughs it does NOT service Manhattan which would add a third to the number of residences it passes.
b: CV's standard speed is 15mbps down and 2mbps up. It also offers 30/5 service and 50/50mbps service -- today. Prices range from $49 before discounts to $199/mo. 100mps service has been announced and is in testing in Oyster Bay, long island NY. That's 7X what they offer in So. Korea, today for standard service.
c: 50% of So Korea's population is wired. 50% of Cablevision's possible customers subscribe to broadband services. 76% of Cablevision's possible customers subscribe to digital video which on CV's network is IP-switched video. So if CV's potential customer base is 4 million homes, what we are saying here is that 76% of them use internet service even if they don't realize it. 50% use traditional Inet service, the same rate as So. Korea. 25% of CV's possible customers use VOIP from CV. No figures are available for non-CV VOIP services, but it may be significant since Vonage et al, are cheaper than OOL's VOIP.
d. the per capita income in So Korea is $20K US. The per capita income in Metro NY is $40K US (US per capita income is $28K). The $25 per month rate vs the $50 rates are equivalent especially when infrastructure costs is taken into account. CV spent about $5B to wire it's 35K miles starting in the late 90's.
So, what does this show? That when you compare similar areas at least as close as we can get by density - Metro NY vs Metro Seoul, I at least find that Metro NY is more than equal.
When looking at Tokyo with it's No.1 status in density, the advantages of number of customers passed per mile becomes even more significant. Higher speeds and bigger backbones are a basic requirement for the services to be even functional. It's so cost effective to run more cabling that competition truly exists.
Here in the US, it's significantly more difficult to maintain, wire, and it all was done without direct funding from the gov't. (fed/state direct funding usually has some tax related basis for it)
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