On Fri, Jan 23, 1998 at 11:56:44AM -0600, Paul J. Zawada wrote:
At 09:19 AM 1/23/98 -0800, Jim Shankland wrote:
Of course, this is orthogonal to xDSL; the same economies of scale would apply with T-1 local loops.
Seems to me that for the RBOCs, the big disadvantage of xDSL is losing all those fat, high-margin T-1 local loop fees.
Two problems with this...
1) If the RBOCs try to keep status quo with the T1 situation, the cable companies may eventually eat the RBOCs' lunch.
2) The RBOCs can deploy fewer HDSL-based T1s due to Near-End cross-Talk (NEXT) concerns... ADSL doesn't have a NEXT problem so they can deploy many more ADSL loops than HDSL loops in the same cable sheath... In this case, volume will win over keeping prices high...
--zawada
Paul J. Zawada, RCDD | Senior Network Engineer zawada@ncsa.uiuc.edu | National Center for Supercomputing Applications +1 630 686 7825 | http://www.ncsa.uiuc.edu/People/zawada
The problem isn't the local loop. Its how you get the data anywhere ELSE after the local loop has provided its piece. A T1 from us, for example, is $600 a month - WITHOUT the circuit. Its $600 regardless of whether you use tin cans and string, a HDSL DS1, a traditional DS1, a wireless DS1 using whatever, or genies flying around with the bits. The reason is that the local loop cost is not included in the price! Now, ADSL can affect local loop prices (downward). What it can't do is change the basics of how data is transported on a national and international scale, and THAT is where the cost components that go into the $600 fee come from. Anyone claiming they can deliver T1 speeds for $30-40 a month is lying given the current state of interconnection expense across real distances. Quest and others laying fiber will not lower these costs by 95%, which is PRECISELY what has to happen to hit those targets. Now, if you want to *CLAIM* DS1 speeds but actually deliver something that looks more like an ISDN connection, then its possible. But where I come from advertising something you can't deliver is commonly known as fraud. -- -- Karl Denninger (karl@MCS.Net)| MCSNet - Serving Chicagoland and Wisconsin http://www.mcs.net/ | T1's from $600 monthly to FULL DS-3 Service | NEW! K56Flex support on ALL modems Voice: [+1 312 803-MCS1 x219]| EXCLUSIVE NEW FEATURE ON ALL PERSONAL ACCOUNTS Fax: [+1 312 803-4929] | *SPAMBLOCK* Technology now included at no cost