More Sidgemore on per-bit pricing

Nathan Stratton nathan at
Wed Dec 9 15:27:20 UTC 1998

On Tue, 8 Dec 1998, David Diaz wrote:

> Most small ISPs cant afford to do that.  Becoming a CLEC is not a $100
> turnkey option.  However you can get good pricing from many CLECs and then
> take a ATM (or even frame) T1 handoff.  Pretty small barrier to entry and
> it let's you scale from there without having to have the equipment, lawyers
> and patience.

That is just it, that is why I said using access method 5, you dont need
to colo in the CO, most ISPs can afford to become CLECs if they can get
rid of that 100 - 300K expense. It is not a $100 turnkey option, but it is
something you could do for 5K. You say that you can get good pricing from
the CLECs, I just have not found that to be true. Have you looked at Covad
and Northpoints pricing? It is hard to make any money at that when the
ISP down the streets cost is $30.
> I'm also thinking where this model might work well is in bldings where you
> can go in, drop a TNTdsl in the basement.  Use existing copper to provide
> 1.5meg (soon 2.23meg/sec??) handoffs to each suite.  Then run a frame
> through the local RBOCs cloud to your hub.  This would allow you to start
> small at several bldings and scale from there.

If you were in the building you could do VDSL and give everybody 53 meg. 

> It would make sense to charge by the bit since that most likely will be
> your #1 cost.  All the equipment can be leased including CPE side which
> would be some cheap PipeDSLs.

There also is CPE comming out with voice, video, and ethernet jacks all
under $750.

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