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Anon | reply to justin
Re: I tracked down Moon Global Not so. In the beginning, PacBell created major issues because they wanted to bill for the loop, and we would bill for the ISP services. This did not work out very well. In the end, the ISP was charged a lump sum for the customer loop and the service.
As to the bandwidth and colo, there are alot of providers who have recently empty cages, racks and partials. The SMS500 is like a 5u unit and the supporting equipment such as a few sun Netra servers (for DNS and Radius) and out of band management would take up like 12-15u of space. This could easily be had in half a rack or less in a shared colo room. The bandwidth costs can be negotiated until day turns into night. The costs will obviously be varialbe and as such your monthly income will vary. However, a 50K buffer leaves a lot of room for bandwidth charges.
The KEY (and would have made this much more clearly had I known you were going to post this on the front page  ) is that without Advertising, without the staff that it takes to shepard an order through the provisioning and installation process, and without the need for expensive back end automated processes for billing, trouble ticketing, and accounting (all outsourced) DSL CAN be a profitable business. | |
| ignore this dupe post
[text was edited by author 2001-04-05 13:23:41] | |
| reply to Anon
said by deakonblues2k:
Not so. In the beginning, PacBell created major issues because they wanted to bill for the loop, and we would bill for the ISP services. This did not work out very well. In the end, the ISP was charged a lump sum for the customer loop and the service.
There's one point (at least) where your business plan doesn't make sense. You say that an "ISP is charged a lump sum for the customer loop and the service." While this was true in the past (when dealing with a CLEC), what you don't mention is that the CLEC would normally absorb most of the monthly cost of leasing the line from the ILEC... this amount is between $5 and $40 PER LINE, PER MONTH, depending on the ILEC and the location.
I know Northpoint was paying this amount per line because I worked at Northpoint, and talked to engineers who were able to provide hard documents proving it.
When you 'buy' the rights to these lines, I'm sure you are also buying the leases (what, the ILEC will simply start giving out copper loops for free?), which are substantial: between 10% and 80% of the cost of these $49/mo lines that you are charging your new customers go to paying the ILEC each month.
Better figure this into your business plan, which otherwise sounds OK, but a bit in the fantasy realm: there are many miscellaneous (some small, some substantial, like maintenance of those lines) which you are not taking into account. It still might work! 
comments? questions? let 'em fly...
cheers,
creep
[addition:]
I'm confused here... who is going to be the CLEC provider? I misunderstood you to be talking exclusively about old northpoint circuits, but now, after going over a few of your posts, I'm not so sure any more. The bottom line is, how much are you paying covad/rhythms/CLEC for the wholesale cost of maintaining the DSL line... remember, you are still relying on SOME company for the connection between your redback and the EU............right?? 
Something's not been thought of. Re-examine, my friend.
[text was edited by author 2001-04-05 13:45:24] | |
| am i missing something? pardon my naivety here, i understand that you are all talking about the economics of buying up DSL customers, but i'm trying to follow a by-product of this conversation:
does the possibility exist that i could say talk to someone (pacbell?) and ask them if i can lease or buy my defunct northpoint circuit directly, in essence being my own DSL provider?
i'm already installed, i pay $x to the clec (?) for circuit and bandwidth and then whatever my normal ISP charges are...yes? no?
i'm sure they don't want to deal with every piddly customer directly, so i doubt this is a realistic scenario, but still... (can you smell the desperation? ) | |
Anon | Contractually speaking the DLECs have agreed to be the only point of contact between the ISPs/EUs and the ILECs. This means that they can't refer an ISP/EU to the ILEC to resolve an issue. They can't give out phone numbers. They can't tell you who to try to contact. Nada.
HOWEVER there is nothing stopping you from contacting your ILEC (PacBell in this case) without the assistance of your ISP. Of course, from talking to many EU's who've tried this, it can be a very frustrating and unrewarding experience as they call dept after dept that may or may not deal with DSL and may or may not know anything about the CLEC DSL depts which are separate from the ILEC DSL depts. On the other hand I've also talked to some VERY determined customers who persevered and went very high up in the ranks of their ILEC to get results. Sometimes it worked out, sometimes it didn't.
There is one little fly in the ointment that comes to mind. All DLEC, be it a CLEC or ILEC, want an ISP. Some make themselves the ISP while others (most) let actual ISPs handle it. I'm not sure which way PacBell works when it comes to DSL. I know Qwest uses ISPs and has their own internal ISP dept, too. Maybe PacBell would be willing to deal with you directly but you still have to get them or someone else to release your line from it's current DSL status.
In the end you'll just have to call PacBell and see which way the wind blows.
Hope that helps a bit.
Visionnaire | | |
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