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View Full Version : competition - wisp vs cable vs dsl


Phil Schuman
July 8th 03, 12:27 AM
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 -

July 8th 03, 01:39 AM
In alt.internet.wireless Phil Schuman > wrote:
> 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.

> 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

> 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.)

> 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. ;-(


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

July 8th 03, 01:59 AM
Phil Schuman > writes:

> 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.

> 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.

> 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 **** 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.

> 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..

Mark
July 8th 03, 04:40 PM
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.


"Phil Schuman" > wrote in message
...
> 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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