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Ars Gives Sonic.net Some Love
Treating Customers With Respect Pays Dividends. Who Knew?
by Karl Bode Monday 27-Feb-2012 tags: competition · business · alternatives · bandwidth · consumers · SONIC.NET
Ars Technica has a nice write up on independent ISP Sonic.Net, which against all odds not only survived the U.S. CLEC-pocalypse, but managed to thrive and proceeded to build their own network. Sonic's current the top rated U.S. ISP in our good, bad and ugly rankings. It's a success that has come from not only offering a good product (they're now offering 1 Gbps fiber for $70 in parts of California), but by treating customers well. Instead of trying to nickel and dime his users at every opportunity, Sonic CEO Dan Jasper can often be found over at his blog arguing how caps make little technical sense, or how most ISPs don't respect your privacy and sell all of your information and online activity (like clickstream data) under the table.

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aztecnology
O Rly?
Premium
join:2003-02-12
Murrieta, CA

Jealous

Somehow living with Verizon FiOS at 25/25 seems like a pittance to Sonic's 1gbps offering...
--
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drew
Automatic
Premium
join:2002-07-10
Port Orchard, WA
kudos:6

Re: Jealous

10/1 cable here says what?

SethChas

join:2001-03-03
San Francisco, CA

This is why I dumped Comcast

I dumped Comcast and went with Sonic.net even though I am getting slower speeds. The moment that their 1GPS is up in my area I'm making the switch.

I'd rather give my money to someone who isn't going to screw me in the end. It's too bad there is not a cell phone company like Sonic.net I'd dump AT&T just as fast as I did Comcast.
25139889

join:2011-10-25
Toledo, OH

Re: This is why I dumped Comcast

the problem is they can only stay private so long. There will be a day that they are bought out by a larger company and that warm fuzzy feeling will go away and they will become a regular ISP.

Remember: all good things MUST come to an end. and Sonic.net will be next.

Linklist
Premium
join:2002-03-03
Longport, NJ
kudos:5

1 edit

Re: This is why I dumped Comcast

said by 25139889:

the problem is they can only stay private so long. There will be a day that they are bought out by a larger company and that warm fuzzy feeling will go away and they will become a regular ISP.

Remember: all good things MUST come to an end. and Sonic.net will be next.

Or even if they aren't bought by a larger company, the current private owners will want to REALLY cash in on their success and issue an IPO to go public. And when the stockholders start demanding ever increasing qtrly returns, the old prices and polices will be a memory.
»arstechnica.com/tech-policy/news···cnet.ars

But expanding on a much larger scale might create financing issues. "On the scale that Sonic.net is currently considering, they can self-finance,” he added, “but if it works and they want to go beyond that, they will need a lot of capital that, as far as I'm aware, they don't currently have."

Jasper confirmed the suspicion; Sonic will have to take on debt if it continues to expand—as it hopes to do so.
In a few more months, he said, it will start to advertise the service; by the end of this year, Sonic aims to pass about 2,500 homes in Sebastopol with fiber, plus some 20,000 more in San Francisco's Sunset District.

--
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»www.politico.com/2012-election/

25139889

join:2011-10-25
Toledo, OH

Re: This is why I dumped Comcast

and that generally means making someone happy in payments each month towards those loans.

DataRiker
Premium
join:2002-05-19
00000

1 edit

Re: This is why I dumped Comcast

You guys really can't stand small business can you?
25139889

join:2011-10-25
Toledo, OH

Re: This is why I dumped Comcast

i actually own a small business. It's the fact that Dane will NEVER be able to expand without any major debt or IPO or anything of that sort. It's a proven fact that he'll have to take on some large debt of his own to really become a threat and expand. And by deploying Fusion DSL based services is NOT a threat to ATT as they're still relying on ATT and the COs. He's actually spending DOUBLE the amount of $$$ in the run by still deploying that.

DataRiker
Premium
join:2002-05-19
00000

1 edit

Re: This is why I dumped Comcast

I don't think sonic.net is trying to "beat" ATT, but rather survive and make decent money doing it.

By all accounts they are doing that exceedingly well, with extremely pleased customers.

cork1958
Cork
Premium
join:2000-02-26

Re: This is why I dumped Comcast

Yeah,
Who says they HAVE to go big. Nothing at all wrong with staying small and local.

If they are making money and surviving and employees working there are making enough also to survive, who says you have to get totally greedy, stupid and ridiculous like Verizon or AT&T, or Comcast or etc.....................

It's small companies like this that made the USA what it is (or was)
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Linklist
Premium
join:2002-03-03
Longport, NJ
kudos:5

Re: This is why I dumped Comcast

said by cork1958:

Yeah,
Who says they HAVE to go big.

Nobody says they HAVE TO. But the sonic guy said he WANTS TO in an interview quoted in a post above.

DataRiker
Premium
join:2002-05-19
00000

Re: This is why I dumped Comcast

Yes, but I doubt he will actually do it.

Firstly, now would be a very bad time to do it with credit for small start ups in short supply.
25139889

join:2011-10-25
Toledo, OH

Re: This is why I dumped Comcast

credit for small companies is NOT in short supply if you know where to go. Banks around the country are in fact giving out money to small businesses. The fact is they are NOT investing in technology businesses or anything that can and will go bankrupt within 2-3 years.

GE Money Bank is one of the banks giving out small business loans, 5/3 is another giving out small business loans and credit unions are ALWAYS giving out loans.
25139889

join:2011-10-25
Toledo, OH
and where are 99% of those small businesses? they've gone bankrupt trying to stay with the changing world or they get bought out by someone else that figures out how to do the same thing on the lower end and steals their business in the free market place.

DataRiker
Premium
join:2002-05-19
00000

Re: This is why I dumped Comcast

Almost every thing NWOhio says is some cliche corporate BS.

Sonic.net is making money EVEN when reselling ATT lines.

Your propaganda is a little thin.
25139889

join:2011-10-25
Toledo, OH
and their only way to "survive" is to kill off the leased portion of the ATT network that they use; thus creating MORE cost for them in the long run as they're deploying 2 different networks at this time instead of being smart about it and deploy one and by pass DSL.
bn1221

join:2009-04-29
Cortland, NY
Just look at what happened when BB bought Speakeasy!
sandman_1

join:2011-04-23
11111

Wish they were in my area

Got a 30/5 line through TW and currently no data cap but I bet it will be soon that TW starts implementing their own caps just like the other cable/tele co's.
elray

join:2000-12-16
Santa Monica, CA

1 edit

"Parts" of California?

Does wiring a portion of a zip code really count as offering service in "Parts of California"?

Karl?
25139889

join:2011-10-25
Toledo, OH

Re: "Parts" of California?

when it has anything to do with Dane and Sonic.net YES! Sonic.net is the FTTH poster child on this site since their and indy doing it. on a VERY small scale.
elray

join:2000-12-16
Santa Monica, CA

Re: "Parts" of California?

Meh.

"Parts" to me means a footprint like Fusion, not a demonstration project and a small portion of an elite college campus. Since when does anyone in the Sunset District have service?

DataRiker
Premium
join:2002-05-19
00000

Re: "Parts" of California?

To all the people reading this site.

Ask yourselves why would the same people constantly defending ATT and Comcast belittle a stellar small business competitor?
25139889

join:2011-10-25
Toledo, OH

Re: "Parts" of California?

i have nothing against Sonic.net. What I have stated is true sense from a business stand point. Where do you think Sonic.net is going to get the capital to expand? Do you think they have a tree that they just pull of $100 bills? I don't think so. And when the company has actual investors to please and a bank to pay back a loan to- that is the only thing that is going to matter. Earthlink was the same way. Small company, went national with an IPO and went down the toilet and still is going.

Show me one business that is not public where they actually sit and hold the hands of their customers and treat them like a child and kill their bottom line and barley scrap by? I can tell you that there is NONE as they have to pay those huge amounts of debt off.

leibold
Premium,MVM
join:2002-07-09
Sunnyvale, CA
kudos:6
Reviews:
·SONIC.NET
Sonic is offering FTTH at 1Gbps in Sebastopol and the Sunset District of San Francisco. In addition they also offer this service in partnership with Google at Stanford.

While admittedly small, those are 3 parts of California and they definitely count.

If you include other Internet service offerings such as their outstanding Fusion (Phone and Internet) product and their legacy DSL product you will find that large parts of California are offered Sonic service.

Sonic has repeatedly stated that they will prioritize FTTH deployment in those areas where they already have a high density of existing customers. Sign up for DSL or Fusion now and FTTH may follow.
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25139889

join:2011-10-25
Toledo, OH

Re: "Parts" of California?

and again; where are they going to get this money? Dane just isn't going to pull this money off his money tree. Him and the company will be taking on mass amounts of debt in order to expand that FTTH and Fusion product. But if he was truly smart he'd skip Fusion DSL/Phone product that relies on ATT's copper network and just build out his own completely. Instead he's going to spend twice the amount of $$$ when it comes to rebuilding that same area

DataRiker
Premium
join:2002-05-19
00000

Re: "Parts" of California?

These people are so angry at Sonic.net I love it!

I also love the hypothetical "impossible" for a small business to expand rhetoric.

A tad cliche but totally in character.
25139889

join:2011-10-25
Toledo, OH

Re: "Parts" of California?

NOBODY IS MAD AT SONIC.net!

why do you assume someone is?

And it is impossible for them to expand the way they need to without taking on debt and large amounts, even the article and its sources state the same thing. Anyone with any knowledge of expanding a business knows this. Large businesses and a wireline network costs HUGE amounts of money and debt to fund. Why do you think VZ is offloading their networks (besides getting rid of their Union employees)?

DataRiker
Premium
join:2002-05-19
00000

1 edit

Re: "Parts" of California?

Way they need to?

Companies don't have to expand at all. My family owned a successful business for 25 years and never needed nor wanted to expand.

In fact we turned down business constantly because it would require hiring outside employees ( not family ) and we prefer not.

But if they wish to expand they can either do it:

A:) sustainably and without debt slowly

B:) selling out to a larger carrier

They are free to do either one.
25139889

join:2011-10-25
Toledo, OH

Re: "Parts" of California?

yes the way they need to. See my post above. The days will be numbered for them if they don't learn how to cut costs even more and expand their networks to cover more people or to raise prices- which people already complain about with them.

And you hire family for one reason- due to taxes and liability laws.

But they'll never be able to fully expand or become another true carrier without expanding and a larger carrier will in deed end up with them. There Google partnership is just that. When Google decides to kill the network Sonic.net is NOT going to be able to pay to support that network all the way across the country; they're for they will have to expand as far as techs and any install crews unless they outsource. But when they do that; BBR blog readers will just bitch about them not hiring true employees or even Union contractors due to they "know what they're doing".

and as far as A- will stop happening as they won't be able to keep up with how long it takes to achieve ROI to keep going.
elray

join:2000-12-16
Santa Monica, CA
said by DataRiker:

These people are so angry at Sonic.net I love it!

I also love the hypothetical "impossible" for a small business to expand rhetoric.

A tad cliche but totally in character.

Not impossible, but there is a huge difference between reselling AT&T copper, and wiring the streets as a public utility; the latter requires, literally "heavy lifting", and massive amounts of capital. Without a strategic acquisition from the likes of Google, Sonic is going to have to get that money from somewhere - and in doing so, likely compromise much of its small-town-hero status.

Dane has demonstrated over the years that he's willing to think way beyond the norm, and there probably are a few clever and innovative ways to achieve *some* growth, including FTTH wiring, without "selling out". But such efforts will remain of limited success.
25139889

join:2011-10-25
Toledo, OH

Re: "Parts" of California?

very true and Google will NEVER become an ISP or any real company due to lack of customer service, support and billing help.

Google will NOT be able to meet State requirements that would be set on them.

And you don't even cover the fact that Dane is spending TWICE as much by leasing copper from AT&T for Fusion DSL/Phone and yet still deploying FTTH. When he should choose one or the other. Why spend double if not triple what you would if you just skipped DSL and went FTTH. Especially when you have the chance to work with HOAs and wire them and move that way to fully expand.
elray

join:2000-12-16
Santa Monica, CA

Re: "Parts" of California?

It isn't a matter of choosing one or the other.

Fusion is an incredible-to-awesome product, which Dane has managed to deploy to a substantial number of central offices in Middle California, within which over half of AT&T subscribers are eligible, as they're not on remote terminals. He's managed to reach a large number of customers in a short period of time, by leveraging existing infrastructure.

New forms of FTTH hold promise, but they will still be selectively deployed.

I'd much rather have 10Mbps ADSL2+ for $40/month *today* than the promise of 100Mbps FTTH 10 years from now.
nishiko7
Premium
join:2007-05-01
Pleasant Hill, CA

Sonic is such an amazing company!

Yes, it has become quite evident that Sonic and it's CEO, Dan Jasper are completely amazing. A rare-ish example of a company doing well by doing good, or in this case, doing well by doing great! Thank you Dan for leading your company in a respectable, honest, fair way.

I would love nothing better than to become one of your subscribers if you ever get fiber out a little furither east (~20 miles or so) to Pleasant Hill.

I can dream, and maybe eventually!

In the meantime, please continue to be such a positive force in the world! It's noted and greatly appreciated by many, even those who may never be able to get your service! Your company is the standard by which all other ISP's (in the US anyway) are measured, and that must feel great!

See 8 replies to this post

CompNrdCR

@sonic.net

I love my sonic service...

I hope they expand further so more people can use their service. A surely great company with a soul, hart and love for the internet.
Tobester

join:2000-11-14
San Francisco, CA
Reviews:
·Google Voice
·SONIC.NET

1 edit

Yes, Sonic really is as good as you have heard.

Like the previous posters, I also find pleasure in dealing with such a motivated company.

Here in San Francisco, I have had five friends switch from AT&T and love it. Best of all their current Fusion feature package of speed and pricing is better too.

Comcast cable internet pricing snags you with initial teaser rates, and then hits you over the head with higher cost later.

The Sonic road ahead is certainly going to get rough by lobbied adversaries waging war at lawmaker offices to stop their expansion.

Hopefully, in the future our current lumbering "internet giant" options will be overtaken by the little Sonic train than can

EDIT: quotes for clarity
puck0114

join:2005-12-24
Portland, OR

Please come to Oregon...

... and free us from our CenturyLink/Comcast hell!
25139889

join:2011-10-25
Toledo, OH

Re: Please come to Oregon...

never will happen. That would cause more debt than what they could afford at this moment.
Dan2112

join:2001-08-24
San Jose, CA

1 edit

Loved them when I was with them, but ....

When I was with Sonic I loved them. The 6Mbit/768 Line was very solid. Then fusion rolled out, couldn't get it my location - why? - the dreaded AT&T remote terminal. If I were closer to the CO where Sonic had access by law, I could get Fusion, but not so on a RT. I stayed with Sonic for as long as I could trying to support it, but I eventually switched to Comcast.

In order for Sonic to reach people like me they would have to roll out their own version of a RT or lay fiber down my street. (Sonic has not ruled this out yet, but it is not likely either.)

While I applaud Sonic every time I hear news about them there is always that bitter pill to swallow. There are lots of us who love Sonic, but are to far from the CO (but not an RT) to make any Fusion product offering worth while. So for me it's 6Mb/768k DSL or 22/5Mb Comcast for almost the same price.

I wish them the best of luck, but the elephant in the room is AT&T and their Remote Terminals. It makes perfect sense for them to go after dense population centers first since they are close to the infrastructure (an ATT CO for the Fusion and fiber they have put down). I hope like heck Sonic figures out how to roll it out to the rest of us and not just large urban centers.

Dan

pkorx8

join:2003-06-19
San Francisco, CA
Reviews:
·Comcast
·SONIC.NET

From my experience,,, YMMV

I wanted to love Sonic's offering, so I tried it in San Francisco.

Unfortunately, Sonic rides on ATT's copper lines and so my speed was still limited by distance to ATT's CO.
I ended up with a pathetic ~2M down.
Sonic did allow me to promptly cancel the service and even refunded my modem. However, I wished they could have told me before wasting time with the whole ordeal, which involved dealing with 2 days of waiting for two ATT truck roll.

See 7 replies to this post

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