woodward
XMission Broadband
VIP
join:2000-12-28
Salt Lake City, UT
1 edit | reply to viperlmw
Re: New high speed tier and price increases.
Far as XMission is concerned? Truth is, we're far past the days when connectivity was bread and butter. In fact, hosting broadband is our least profitable service. Believe me, all the DSLR bluster about ISP services ripping off consumers over monthly quotas is far, far off the mark. Most heavy data consumers are costing us a small fortune.
These days we do most of our business in colocation (our data center is virtually maxed out), hosting, business solutions, and dedicated access. And we're increasing our pcat all the time, with varying levels of success. Right now we're getting our feet wet with VoIP, and hope to grow quickly into full PBX and unified communications hosting.
But we haven't given up on access, and yes, we have considered our own fiber footprint. But saying its expensive is an understatement. You're talking anywhere between $5,000-10,000 per location install depending on area. It can be far more expensive for us to roll such a network than it is for incumbents who have a hundred years worth of subsidized infrastructure to build on - particularly when you face legal obstruction at every pole juncture. And, I admit, we're just not that skilled at leeching VC. We've always been privately owned and have always self-financed growth, which just isn't compatible with these needs.
We also started a CLEC subsidiary that we can use for interconnect/colocation and just lease last mile. Dunno if its worth the investment, though.
Waaayyy off topic now  |
|
viperlmw
Premium
join:2005-01-25
 ·Qwest.net
| Thanks for the interesting reply. I agree most residential consumers don't understand the cost of the bandwidth they use. And the heavy users want 100meg x 100meg for $20 a month, with no caps. But the part about a hundred years of subsidized infrastructure, I was asking about FTTP, and very little of that has been subsidized. Basically, it's all new stuff, so I believe much of that argument is a straw man. But focusing on the business side of the house, and not primarily on residential is probably a smart move. And I have always been impressed by companies that self-finance. Sure, growth is slower, but the profits are all yours. Good luck with the CLEC stuff! |
|
mathyou
join:2002-01-03
Minneapolis, MN
| reply to flyguy42
In my reading, woodward wasn't saying that fiber build-outs have been publicly subsidized for a hundred years. He said that the copper infrastructure has been, which is why the FCC's decision to allow ILECs to deny access or grant it on discriminatory terms was bad. |
|
macroff
join:2001-02-23
Sandy, UT
1 edit | reply to woodward
said by woodward  :Far as XMission is concerned? Truth is, we're far past the days when connectivity was bread and butter. In fact, hosting broadband is our least profitable service. Believe me, all the DSLR bluster about ISP services ripping off consumers over monthly quotas is far, far off the mark. Most heavy data consumers are costing us a small fortune. I think if you look at the cost on an individual basis, this is the case. If you look at the whole picture, then, in my opinion, you need those heavy data consumers and residential connections. Lemme explain...
I'm just guessing with all this... by looking at your graph stats, your Qwest DSL customers use about 50% of your bandwidth. Add Utopia to that and your bandwidth usage by providing connectivity is probably pushing 70-80%. That's a lot of bandwidth usage that gives you leverage to negotiate lower prices with your backbone providers for a lower Mb/s cost. That lower Mb/s cost makes your collocation/hosting/other business more profitable. If you stopped providing connectivity right now, your backbone costs (per Mb) would probably go up quite a bit. The Qwest DSL and Utopia customers also help offset the cost of running your datacenter. Take DSL and Utopia out, you would find, in my opinion, that your data center wouldn't be as profitable. I would also give a little credit to residential and heavy bandwidth users in helping you (possibly forcing you) to build out a larger capacity network that makes Xmission competitive in the collocation market in Utah. Honestly, I wouldn't even look at Xmission for collocation if they didn't have GigE connections and larger routers. There are a number of large collocation companies in Utah that have big data centers, large pipes and facilities designed extremely well for 100% uptime. I just don't think Xmission would have built as good of a network without the connectivity customers. In many ways, you're following in the footsteps of ViaWest.
Right now we're getting our feet wet with VoIP, and hope to grow quickly into full PBX and unified communications hosting. I hope you can find success in these areas. So many companies are into this and a number have closed up shop (or are really struggling). If you can find ways to be different, then I think you can succeed in this area. You HAVE to be different.
We also started a CLEC subsidiary that we can use for interconnect/colocation and just lease last mile. Dunno if its worth the investment, though.
I don't know that becoming a CLEC is really worth it either. CLECs seem to be struggling too with either closing up shop, merging, or getting bought out. I think it's hard to make money in this area, but it may be the only option to reach some customers. There is, however, some really neat copper-based equipment out there that shows that copper still has a lot of potential.
I think it is an interesting time for Xmission. I'm really interested to see what Xmission does over the next 2-4 years. Things are changing. It seems that a critical junction point is forming. I just hope that Xmission isn't too late to enter some of the different markets out there. Xmission has to change and is probably large enough to do it. I think Qwest building a separate ADSL2 network shows the beginning of the end of 3rd party ISP's. |
|
woodward
XMission Broadband
VIP
join:2000-12-28
Salt Lake City, UT
| Your thinking is dead on for the most part, and we have pages and pages of data breaking down this relationship. There is indeed symbiosis. But our bandwidth consumption has always been driven by the coloc, and not access subscribers, and that's for one critical reason -- coloc = upload. Access = download. We've always essentially used the glut in inbound data to fuel our access service. It is a very, very rare occasion that we have to increase bandwidth for access subscribers.
You're absolutely right about the per-Mb cost, though. But, believe it or not, it isn't until just within the last couple of months that we have crossed into significant discounts. We also have a bad habit of re-investing those savings into our customer's service (*GASP* what are we thinking?!?!?!).  At the end of the day, we're still only making pennies on every access subscriber.
quote:
I think Qwest building a separate ADSL2 network shows the beginning of the end of 3rd party ISP's.
There were about 160 third party ISPs on the Qwest conference call that announced this who were realizing the same thing. |
|
macroff
join:2001-02-23
Sandy, UT
| said by woodward :We've always essentially used the glut in inbound data to fuel our access service. It is a very, very rare occasion that we have to increase bandwidth for access subscribers. I didn't even think of that. It seems like the two really complement each other and can help the bottom line.
We also have a bad habit of re-investing those savings into our customer's service (*GASP* what are we thinking?!?!?!).
Have you had any word on video with these new speed tiers or with the ADSL2 deployment? I ran across something interesting today going through some Sandy City Council minutes. They're about 6 months old, but I haven't heard/seen anything about this until now -- at least here in Utah. Here are two links to the minutes:
»sandy.utah.gov/fileadmin/downloa···_min.pdf -- Public hearing 3
and
»sandy.utah.gov/fileadmin/downloa···_min.pdf -- Council item 4
It appears as though Qwest wants to obtain a video franchise agreement in Sandy City to offer video/cable services over (what I'm guessing) their ADSL2 network. |
|
Sefirato
Turambar, Master of Fate
Premium
join:2002-05-08
Anchorage, AK
| reply to flyguy42
Apparently already available to me. |
|
Rubepeta
@exitcare.com | reply to flyguy42
Just checked in Forest Lake, MN and it is showing available here also........ 129.98 Month for 20Mbps and Phone or 104.99 for just Internet |
|
Karl Bode
News Guy
join:2000-03-02 | Has anyone successfully ordered? |
|
evilpeppard
Always Fight For Freedom
Premium
join:2003-08-20
Aurora, CO
clubs: 
| reply to Sefirato
I show it now available (4/23/2008) to me in Denver, CO (Centennial). Only up to the 12MB flavor though.
I'd like to upgrade, but not going to. I'm using the 7MB tier with no problems right now. If I went to 12MB, it would just be for bragging rights at this point.
--
"My actions are not revenge...they are punishment..."
|
|
AthlGrond
Premium,MVM
join:2002-04-25
Aurora, CO
 ·Comcast
1 edit | said by evilpeppard :I show it now available (4/23/2008) to me in Denver, CO (Centennial). Only up to the 12MB flavor though. I'd like to upgrade, but not going to. I'm using the 7MB tier with no problems right now. If I went to 12MB, it would just be for bragging rights at this point. Apparently some lines in my zip code go up to 20Mbps, however my home phone number is still limited to 1.5Mbps. Oddly enough, I'm now even less interested in getting DSL at home as a result. (Perhaps it's the getting %7.5 of the speed for %46 of the price of their fastest service. )
--
"You are technically correct. The best kind of correct." -Bureaucrat 1.0 |
|
spectra
join:2000-07-21
Tempe, AZ | reply to Karl Bode
I thought about ordering, but I'm going to hold off for now. Primarily because I want to see if this new service is fastpath or interleaved. You can never get a straight answer from Qwest over the phone. |
|
slimmy
join:2008-03-30
Idaho Falls, ID | reply to flyguy42
I was about to order, but here in Idaho Falls, ID I can only get the 3mb dsl. That is for 46.99 and my 3mb cable is only 43.00.
If they could at least get the 7mb to my house. I would be all over it. Oh well. |
|
woodward
XMission Broadband
VIP
join:2000-12-28
Salt Lake City, UT
| reply to Karl Bode
said by Karl Bode :Has anyone successfully ordered? Yes, I know of at least two subscribers that have canceled their DSL service with XMission because they upgraded to FTTN this week and we were unable to host the new line. |
|
Karl Bode
News Guy
join:2000-03-02 | Gotcha. Thanks for the info.
For what it's worth, I'm hearing the official announcement should be Thursday, so hopefully we'll hear some solid launch markets... |
|
brmasha
join:2000-05-16
Logan, UT | reply to woodward
Woodward, do you know what parts of Utah your subscribers that canceled were in? |
|
skriefal
join:2002-12-26
Sandy, UT
1 edit | The 5/7mb tier is still the fastest available option here in Sandy, according to Qwest's web site.  |
|
bleagh
join:2004-03-11
Salt Lake City, UT
| reply to flyguy42
Well I am only 2 blocks away from the Qwest offices in downtown SLC. If I check my zip (84111) online it shows speeds up to 20meg. But if I put in my phone number, it only gives up to 7meg.
I called Qwest on the phone today, and they also stated that the fastest speed for my line is 7meg. They also said that the faster speeds are only available for 2% of their customers. |
|
woodward
XMission Broadband
VIP
join:2000-12-28
Salt Lake City, UT
| reply to brmasha
said by brmasha :Woodward, do you know what parts of Utah your subscribers that canceled were in? SLC area, but I couldn't tell you exactly where.
We're seeing a lot of what bleagh is reporting, where the area qualifies but the service is not quite yet live. |
|
dispatcher21
join:2004-01-22
united state
| reply to flyguy42
Are there any zip codes that the new speeds dont show up on? I put in a zip code for Touchet,WA 99360, the whole town is fed by a RT(s) and it still shows up with the new speeds available and I cant believe that they would have it, the population is like 396. I think that any zip code entered will show the new speeds, kinda irritating. |
|
