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« easy.Re: Fairpoint deal »
This is a sub-selection from telephone service

xsiddalx

join:2005-03-11
Chicago, IL
reply to tschmidt

Re: telephone service

said by tschmidt See Profile
DSL is a clever engineering kludge designed to extract additional value from existing copper cable plant but it is just an interim step to an all fiber network. FairPoint acts as if DSL is Broadband nirvana rather then just a stepping stone.
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How is it really a kludge?

A rock solid T1 is still tons more than a DSL circuit (price and throughput but very different markets and uses).

It makes sense though if you believe that the telcos are no longer telephone companies but internet providers with telephone service on the side (makes sense to me).

FTTH doesn't pay for itself (IMO) on internet access alone.

DSL is a card swap, ftth is a physical build out. Big dollar difference (all initial sunk cost, but a gamble in cost depreciation and profit I imagine).

said by tschmidt See Profile
Having DSL rather then dialup will be great for rural areas not currently served by DSL. However DSL speed, limited by copper distance, will become increasingly marginalized in the future. An analogy is V.90 dialup modem technology. It represents clever engineering that extracts higher speed then most though possible over the PSTN. That said dialup performance is wholly unsatisfactory today for Internet access.
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DSL might well be the new dial-up.

Depending on configuration, it is effectively a dial-up service (at higher speeds).

Although I agree with you in principle, every technology that exists today is obsolete, or as you politely put it, marginalized. It's all a matter of time. Are you willing to fund the acceleration of technology without expectation of a profit?

I hate to admit, the way I use the internet, I discovered dial up was quite fine for the games I play and the web sites I visit with my current browser configuration. I am fully aware that doesn't reduce the BW delivered to my ISP, but then again, they have agreements in place...dial up has a place, but it is likely cheaper for telephone companies to provide DSL than tie up circuit switches.

said by tschmidt See Profile
The big question is will FairPoint be able to raise enough Capital, in face of falling land line revenue to invest in DSL and next generation broadband?

/tom
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A good question for Wall Street!

Then again, to turn the tables, the big question is will Verizon be able to raise more Capital, in face of falling land line revenue to invest in DSL and next generation broadband after they sell off properties?

Using your metrics of capital, where is the Capital best invested for a return? Maybe NH isn't the best place (though you can certainly start a company to prove wall street wrong).

Welcome to deregulation 2.0

How much electric choice do you have since deregulation?

How much natural gas choice do you have since deregulation?

How much cable choice do you expect since deregulation?

How much telco choice do you expect since deregulation?

Hell, let me throw in the roads that we are selling off under lease to private investors such as fairpoint. It's America, love or leave it, right?

Given that the Cable and Telcos (and cellular affiliates) are ISPs now, what are you expecting?

There are certainly small pockets of competition out there though!