Archive of UserLand's first discussion group, started October 5, 1998.
Re: ISP Service Agreements
Author: Jim Stegman Posted: 8/2/2000; 8:32:46 AM Topic: ISP Service Agreements Msg #: 19380 (In response to 19377) Prev/Next: 19379 / 19382
but what about DSL or Cable?In my area there is only one cable provider, Time-Warner, which currently has a monopoly. I can't offer cable service, even if I had the means to run my own cable. (obviously I don't)
We do offer 768K ADSL service, which is connected through our local Ma Bell. We are connected to Ma Bell via a 10 Mbaud fiber line that carries all our ADSL customers. It runs about $1000 per month, and carries all our ADSL customers at a time. Obviously if they are all pounding the line pretty hard, we can't give them each 768K bandwidth over a 10Mb line. We need to buy another one.
Obviously we also need our own connection to the Internet. T1's (approx. 1.5 mbaud) run about $1500/mo., including local loop charges. So theoretically 2 ADSL customers could tie up a T1 all by themselves.
In our area, ADSL service is sold for a wallet-busting $10-15 per month. (Ma Bell gets $30/mo. for her part) So I'm not exactly rolling in the dough.
This is not counting personnel and equipment costs.
In the ISP business, the only way you are ever going to make money is to get a large number of subscribers, and hope and pray that the law of averages gives you only a few "power users". Every week we have to deal with incompetent consultants who have screwed up things while trying to set up a proxy server of some sort, to deliver the equivalent of dedicated service for $20/month.
Everyone wants something for nothing. (I'm no exception) It's just no fun if you are the poor sap who is expected to provide the something.
With the power of desktops these days, PCs can create big problems if not operated correctly. Early in the summer we had a dedicated account where a user set up a vacation auto-reply email. Just before walking out the door at 5 PM on a Friday, he decided to test it by sending a message to himself. Soounds like an innocent thing. Talk about a nasty chain-reaction! Think about it for awhile. Stuff like this affects all my customers, not just the guy who created the problem.
I know that P2P is the big buzzword now, and everyone is excited about the possibilies. That's great, but please be careful in the design of server software that is going to run on the PCs of "the masses". The Melissa & Love Bug viruses showed how quickly PCs enmass can bring the Internet to its knees.
I hope this doesn't sound like I'm whining, I'm really not! I just wanted people to see an ISP's POV. Dave's explanation of his situation at Userland has been very helpful IMHO. Just thought I'd add mine to the mix.
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