***COMNET Education
(January 29)
The nice thing about COMNET, and I guess many of the conferences
we attend are the tutorials that precede the actual conference.
These daylong sessions are essential for technology newcomers and
those who want to tune up their skills before the conference and
exhibits begin.
This year we attended a tutorial on xDSL, Cable Modems and High
Speed Access, given by Michael Finneran, President of dBrn
Associates, an independent telecommunications consulting firm
specializing in new network technologies.
The session discussed both DSL and cable modems, but Finneran was
very clear on his preference for cable modems and claimed their
lead in the market was 3.4 million households at the end of last
year compared to DSL households which totaled 1.157 million. He
also poked fun at the many disasters that DSL providers have had
with installations – and suggested DSLreports.com as a good
source to read other user's "Greek Tragedies."
Finneran was a great speaker and educator – and we received lots
of good information, on DSL, cable modem and fiber installs,
equipment and future potential. More information below.
*4.57 million people have Internet access in the United States –
75% of those use cable modems.
*In areas where cable modem service is available, companies are
achieving a 6% buy rate. (Cablevision is slightly ahead with
12%).
*Fewer than 5% of cable modem subscribers, subscribe to voice
services. Average install time for voice service? 4 hours.
*Most cable modem customers are using self-installation kits.
About 90% of all Cablevision customers use these self installs.
*Merill Lynch is one of the first commercial operations that has
chosen cable modems for their telecommuting employees.
*Out of the 1.157 million DSL households, ILECs provision 75% and
½ of their share is controlled by SBC.
*There are 548,000 business DSL installations.
*Average price that ILECs charge CLECs for a copper line is $20.
Competition with cable modems has decreased the price CLECs can
charge consumers to $40. No wonder they are going out of
business!
*There are over 20,000 Central Offices for CLECs to try and
collocate with, if they want to compete nationally.
*Verizon's bid to buy Northpoint, was so high, they were actually
offering to pay $23,000/DSL customer.
*In order to start their operations, Northpoint approached 85
PacBell central offices for collocation. On the DAY of the
deadline (they must respond in 6 months) all 85 replied that
there was no space within their offices. Northpoint complained to
the PUCs and the company found space in 75% of the same offices,
but decided to charge Northpoint between$10,000-500,000 for the
space. These are some of the difficulties that CLECs face in the
DSL market.
Wave Issue 0107 2/5/01 Article 1-01