competition - wisp vs cable vs dsl

competition - wisp vs cable vs dsl

Post by Phil Schuma » Wed, 09 Jul 2003 07:27:36



We're going thru an interesting business case in our local area
as a high tech suburb just west of Chicago - Lisle, Illinois -
We don't have our own CO, but draw dialtone from a neighboring CO.

As it turns out - the CO is too far for most to install xDSL service -
Therefore - no DSL service -

Next, the AT&T cable franchise never upgraded their equipment
to support Internet service.
Therefore - no cable modem service -

A couple of guys last fall started the ball rolling on putting up a
serious
wireless ISP - WISP - using Motorola Canopy equipment.
They finally got it up on the local water towers,
and started accepting customers in the spring.....
    http://www.wowaccess.com

Now comes the interesting part -
They were up and running at the same time as AT&T
sold their cable franchise to Comcast.
Now Comcast has gone thru the area
and upgraded their cable infrastructure to support internet service.
They now can offer customers cable modems...

Also - it appears that Ameritech/SBC
has started using their remote terminal cabinets
to install chassis and cards to support DSL in our area -
maybe as a final result of SBC being granted Long Distance permission.
no confirmed DSL users as yet -

So - a couple of interesting business case questions come to mind -
1) Did the cable and telco companies respond to the wireless competitor
?
    or was it just really bad luck to have BOTH coming online
    just as the WISP was getting up and running ?

2) The startup cost for the WISP customer is about $500 for the wireless
module.
    The WISP can't absorb this cost, else they will go out of
business....
    How can they compete with the telco & cable offerings - with no such
costs ?

3) How do you think this will play out ?

Phil -

 
 
 

competition - wisp vs cable vs dsl

Post by eMail2M » Wed, 09 Jul 2003 08:28:03



> We're going thru an interesting business case in our local area
> as a high tech suburb just west of Chicago - Lisle, Illinois -
> We don't have our own CO, but draw dialtone from a neighboring CO.

> As it turns out - the CO is too far for most to install xDSL service -
> Therefore - no DSL service -

> Next, the AT&T cable franchise never upgraded their equipment
> to support Internet service.
> Therefore - no cable modem service -

> A couple of guys last fall started the ball rolling on putting up a
> serious
> wireless ISP - WISP - using Motorola Canopy equipment.
> They finally got it up on the local water towers,
> and started accepting customers in the spring.....
>     http://www.wowaccess.com

> Now comes the interesting part -
> They were up and running at the same time as AT&T
> sold their cable franchise to Comcast.
> Now Comcast has gone thru the area
> and upgraded their cable infrastructure to support internet service.
> They now can offer customers cable modems...

> Also - it appears that Ameritech/SBC
> has started using their remote terminal cabinets
> to install chassis and cards to support DSL in our area -
> maybe as a final result of SBC being granted Long Distance permission.
> no confirmed DSL users as yet -

> So - a couple of interesting business case questions come to mind -
> 1) Did the cable and telco companies respond to the wireless competitor
> ?
>     or was it just really bad luck to have BOTH coming online
>     just as the WISP was getting up and running ?

My hunch is Comcast has had the plan to expand before the WISP. I believe it
was just a coincidence.

Quote:> 2) The startup cost for the WISP customer is about $500 for the wireless
> module.
>     The WISP can't absorb this cost, else they will go out of
> business....
>     How can they compete with the telco & cable offerings - with no such
> costs ?

With that kind of startup cost, your local WISP is going to go out of
business to compete with the local DSL and cable modem connections. These
days, the DSL/Cable modem connections are pretty stable with almost
and/more T1 bandwidth for download. As with WISP, do you know what is the
given bandwidth with that price? BTW, what is the interference on WISP?

Quote:> 3) How do you think this will play out ?

> Phil -

Well, free installation with free equipment to attract lots of customers.
Don't forget to provide good customer services. One other thing, most of
the broadband users would love to have an access to an NNTP server with
unlimited downloads on binaries NGs.

I hope that helps.

 
 
 

competition - wisp vs cable vs dsl

Post by d.. » Wed, 09 Jul 2003 08:39:06



Quote:> They finally got it up on the local water towers,
> and started accepting customers in the spring.....
>     http://www.wowaccess.com
> So - a couple of interesting business case questions come to mind -
> 1) Did the cable and telco companies respond to the wireless competitor

I doubt it.  They probably saw a vacuum, not served by DSL or cable, and
gave no thought to water towers.

Quote:> 2) The startup cost for the WISP customer is about $500 for the wireless
> module.
>     The WISP can't absorb this cost, else they will go out of
> business....

A- That's too high.  What's in that box, and why didn't they get a
        quantity discount?
B- cable/DSL sometimes charges $100-200, sometimes it's free.
        I pay $5 per month for a $90 cable modem.
C- MCI charged about $500.  DirecWay charges $500

Quote:>     How can they compete with the telco & cable offerings - with no such
> costs ?

That might be tough.  Can they drop the sophistication of the box for
residential, and keep it high for business.  (Otherwise the pricing of
business verses residential looks bad anyway.)

Quote:> 3) How do you think this will play out ?

The company might die before people figure out that a good local company
beats the hell out of conglomerate cable modem. ;-(

--
---
Clarence A Dold - Hidden Valley (Lake County) CA USA  38.8-122.5

 
 
 

competition - wisp vs cable vs dsl

Post by ab.. » Wed, 09 Jul 2003 08:59:32



> Also - it appears that Ameritech/SBC
> has started using their remote terminal cabinets
> to install chassis and cards to support DSL in our area -
> maybe as a final result of SBC being granted Long Distance permission.

Not a chance this is anywhere even anywhere remotely close to the truth.

Quote:> So - a couple of interesting business case questions come to mind -
> 1) Did the cable and telco companies respond to the wireless competitor
> ?
>     or was it just really bad luck to have BOTH coming online
>     just as the WISP was getting up and running ?

They are all out to eat each other alive, except perhaps the wireless guys.

Quote:> 2) The startup cost for the WISP customer is about $500 for the wireless
> module.
>     The WISP can't absorb this cost, else they will go out of
> business....
>     How can they compete with the telco & cable offerings - with no such
> costs ?

They can not.  There is no way, at least not on price alone.  Luckily
for them sbc is absolute dog shit amongst phone companies, and comcast
is not far behind them in the world of catv, so if the wireless people
can provide decent service they might have some itsy bitsy chance of
surviving and prospering.  Maybe.  But probably not.

Quote:> 3) How do you think this will play out ?

sbc will cream everyone else on price then the very day their competition
has been destroyed they will jack the prices up like there is no tomorrow.

Billy Y..

 
 
 

competition - wisp vs cable vs dsl

Post by Mark » Wed, 09 Jul 2003 23:40:01


Expect the start-up costs for the WISP to drop to around $300 soon as the
subscriber hardware costs drop with volume increases to Motorola.


Quote:> We're going thru an interesting business case in our local area
> as a high tech suburb just west of Chicago - Lisle, Illinois -
> We don't have our own CO, but draw dialtone from a neighboring CO.

> As it turns out - the CO is too far for most to install xDSL service -
> Therefore - no DSL service -

> Next, the AT&T cable franchise never upgraded their equipment
> to support Internet service.
> Therefore - no cable modem service -

> A couple of guys last fall started the ball rolling on putting up a
> serious
> wireless ISP - WISP - using Motorola Canopy equipment.
> They finally got it up on the local water towers,
> and started accepting customers in the spring.....
>     http://www.wowaccess.com

> Now comes the interesting part -
> They were up and running at the same time as AT&T
> sold their cable franchise to Comcast.
> Now Comcast has gone thru the area
> and upgraded their cable infrastructure to support internet service.
> They now can offer customers cable modems...

> Also - it appears that Ameritech/SBC
> has started using their remote terminal cabinets
> to install chassis and cards to support DSL in our area -
> maybe as a final result of SBC being granted Long Distance permission.
> no confirmed DSL users as yet -

> So - a couple of interesting business case questions come to mind -
> 1) Did the cable and telco companies respond to the wireless competitor
> ?
>     or was it just really bad luck to have BOTH coming online
>     just as the WISP was getting up and running ?

> 2) The startup cost for the WISP customer is about $500 for the wireless
> module.
>     The WISP can't absorb this cost, else they will go out of
> business....
>     How can they compete with the telco & cable offerings - with no such
> costs ?

> 3) How do you think this will play out ?

> Phil -

 
 
 

1. competition - wisp vs cable vs dsl

We're going thru an interesting business case in our local area
as a high tech suburb just west of Chicago - Lisle, Illinois -
We don't have our own CO, but draw dialtone from a neighboring CO.

As it turns out - the CO is too far for most to install xDSL service -
Therefore - no DSL service -

Next, the AT&T cable franchise never upgraded their equipment
to support Internet service.
Therefore - no cable modem service -

A couple of guys last fall started the ball rolling on putting up a
serious
wireless ISP - WISP - using Motorola Canopy equipment.
They finally got it up on the local water towers,
and started accepting customers in the spring.....
    http://www.wowaccess.com

Now comes the interesting part -
They were up and running at the same time as AT&T
sold their cable franchise to Comcast.
Now Comcast has gone thru the area
and upgraded their cable infrastructure to support internet service.
They now can offer customers cable modems...

Also - it appears that Ameritech/SBC
has started using their remote terminal cabinets
to install chassis and cards to support DSL in our area -
maybe as a final result of SBC being granted Long Distance permission.
no confirmed DSL users as yet -

So - a couple of interesting business case questions come to mind -
1) Did the cable and telco companies respond to the wireless competitor
?
    or was it just really bad luck to have BOTH coming online
    just as the WISP was getting up and running ?

2) The startup cost for the WISP customer is about $500 for the wireless
module.
    The WISP can't absorb this cost, else they will go out of
business....
    How can they compete with the telco & cable offerings - with no such
costs ?

3) How do you think this will play out ?

Phil -

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