More Sidgemore on per-bit pricing

Dean Anderson dean at
Thu Dec 10 00:31:25 UTC 1998

At 06:43 PM 12/9/1998 -0500, Jay R. Ashworth wrote:
>> I was just saying how you could lower the cost of the ADSL loop from
>> around $150 to $30, with both you would need to supply the IP. The idea
>> would be that you would not just use the port for internet traffice. You
>> would provide voice services, you would provice VOD (video on demand), and
>> cable services (using something like I Magic TV).
>Oh yeah, I got that, Nathan.  It's just that I get miffed when people
>keep going on (don't take this personal) about how cool it is that I
>can get my loop down from $300 to $150... when my router port is still
>$1800.  Nice, yeah, but not what people mean when they blather about
>"cheap bandwidth".  If it's _that_ cheap, it's running under completely
>different assumptions than a standard T-1; viz: cable modems.

Um, actually, I think think you can get DSLAM's for about $700 per port or
less going by my recent informal surveys.  

Router ports have been way overpriced for a long time. They were overpriced
when an AGS sold for 30K with a stack of ethernet, serial, and an fddi
port.  Of course, back then the pricing model optimistically expected to
sell only a few thousand. They got even more overpriced later, and now
expect to sell hundreds of thousands.

What I've yet to find out is what sort of latency one gets with a DSL modem
as compared to a DSU...

I'm not sure DSL is somehow inferior technology (as Bob Metcalfe seems to
think from an article several years ago), or if it just represents a
(slight) change and a collapse of the fee structure.


           Plain Aviation, Inc                  dean at

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