Following copied from NEWS section, 16.9.99
BT & ADSL
Let's price it so high no one will want it, then can say there's no demand - for those that can get it, that is.
" "
Insert your own sentence above.
Americans will gasp in shock, UK ISP's will hurl, and I'm taking up that job offer in Alberta...
I have spoken to the ADSL trials manager who told me what little he was able to, but I got the feeling he wasn't too happy about it either.
- USER
- STARTING PRICE £100 per month
- Installation £260
- ISP
- Cost to ISPS's for a 512kb/s line - £14,400,
- £25,600 for a 2Mb/s line rising to £68,600 for 34Mb/s
- Installation fee for ISP's from £2,000 to £15,000
- Limited to 40 users for backbones up to 2Mb/s (900 for faster speeds of ? )
- 28 page contract giving BT rights to any data the roll-out "trial" generates
- Delivery dates of 40 - 100+ days (up to 5 months+) depending on speed.
- BT - for every user the ISP signs up, BT gets:
- £260 installation fee
- £60.49 Internal shift (!?)
- £1065 - £1590 p.a. rental (512kb/s - 2Mb/s)
These figures mean that ISP's will have to charge UK users £200 a month for effectively a modem class 50kb/s link.
(Sources:
Computer Weekly - 16.9.99 - article for Cliff Saran
IT Week - 13.9.99 Vol 2 #33 - cover story
IT Week - 13.9.99 Vol 2 #33 - article by Rupert Goodwins
ARE THEY NUTS. That's a free local call back home. For $450 a month I could buy a house. I re-checked today and here's what Canadians are paying in Edmonton, Alberta, with Cadvision
Dedicated Home Account - Download 1.5Mb/s, Upload 640kb/s, dynamic IP, 10Mb space, etc
The cost? CAN $37.40 a month (set up fee $49).
That's around a wallet busting - NOT - £15 a month for unlimited high speed access.
Enhanced Account - Download 7.68Mb/s, Upload 1Mb/s 8 Static IP's, (sub nets available) et al.
The cost? CAN $124 a month (set up fee $199).
This has got to hurt, static IP's, 7Mb/s and no leased line costs. £50 a month. Mortgage the house guys.
Sorry, in case you misread, 1Mb/s in Canada is £15 a month (and much lower sales tax too, I might add) - or, compliments of BT's stranglehold on the local loop, £200 A MONTH - for a poxy 50kb/s connection.
Quotes my own, oft repeated thoughts from Rupert Goodwins
"With no competition and billions of pounds of call revenues from dial up Internet access, BT is in no hurry to make this work. Commercially it's understandable, even if it's hurting us."
The point though, Rupert, is that it is only possible because the government and OFTEL allow it. They COULD unbundle the local loop tomorrow. So, why don't they, especially given that most of that copper was laid when it was part of the government owned GPO. The UK got right royally stiffed when Thatcher and the Tories (?) sold off their crown jewels for a pittance.
The US was unbundled at the end of '97, Germany earlier this year, Holland around next February and BT, oh, we'll give them until July 2001 to milk the market. Understandably, competitors like MCI Worldcom are a bit biffed.
Just remember one thing. WHEN the number of businesses failing rockets, WHEN the national defacit escalates and WHEN the unemployment rate soars, you were warned.
True, the e-commerce issue is in it's infancy, but it won't remain so for long. The UK will be 3-5 years behind the rest of the connected world. I'm sure you all remember growing up - how many of you played with 8 year old neighours and siblings when you became a teenager...
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May 25th 1999
The news of concern to the UK is Microsofts' increased interest in the cable companies over here. In addition to their 5% stake in NTL (who have already begun a cable modem roll-out) and a 30% stake in Telewest, they are also said to be after a 30% cut into Cable & Wireless.
One or two consultants have posed the thought that a future consolidation could occur with the net result being the monopoly Telco's being BT against Microsoft (and friends). That will be interesting. Microsoft aren't exactly known for accepting second place, but are heavily pushing broadband Internet, while we all know BT refuse to budge on their lucrative tighthold on the local loop and per second charges...
April 29th update
No, I haven't lost interest in the site or pages, just busy with other matters!
A plug first. CUT - the Campaign for Unmetered Telecommunication charges are organising a Europe wide none phone day in definance of greedy telco's over here. In their own words...
"On Sunday 6 June we are taking part in a European Telecommunications
Boycott with nine other European countries. The formal announcement is at:
C.U.T.
The aim is for as many people as possible in those countries to pull out
their telephone plugs, and lay down their modems, for 24 hours on that day
in protest at high telecommunications charging in most EU countries, not
just ours."
Personally, I think it's a great idea, but my feelings are that it doesn't go far enough. Now, a two hour boycott EVERY Friday morning (say 10am - 12am) from businesses Europe wide and a TOTAL weekend once a month, that would be more to my taste - make the blighters sit up and take note! Of course, I'm rather extreme, and besides, that isn't quite CUT's aim. The thought behind it is to make them sit up and say "Maybe the users (That's us, lining their greedy pockets) are serious, we should listen to them." If it was up to me I'd have every telephone in Europe unplugged - indefinately - until they relented and listened to the silence of the angry majority...
X-STREAM
The sage continues. This month the 'deal' is that 0800 connection is only at set times, specifically:
Monday to Friday 12pm midnight to 2am.
Might just me me, but the line automatically disconnects after being logged on for an hour. If so, that's very fair and something I mentioned here, and to them last month - stops people hogging the lines - he says, having happily logged on for some 30+ hours. Getting flack of the wife for stopping up till 2am every night, mind :-)
Anyway, how is it for me? Mixed feelings, I connect at between 41,333 and 49,333 - constantly better than I get from U-NET or Demon, the other ISP's I use. However, the response rates and download speeds can be so bad... The worst examples were:
- a ping response to a chat room that measured a whopping 8 minutes!!!
(457seconds instead of the normal 1 to 3 seconds).
- Times of up to an hour or longer to get my email down for the day (about 40-50 messages)
- Download times below 0.01kbs - (3.5 - 4.2 using other ISP's)
I've not talked to X-Stream yet this month but I will see if I can get any comments from them shortly. Perhaps they were having teething problems, or it was down to the sheer number of people that, like me, will stay up all hours to 'cheat' the telephone companies out of our coin. I will point out that on the regular 0845 numbers, the connections are invaliably excellent and that the above do not reflect on X-Stream as a service, but do, I believe, show just how many folk are using the service at these times to reduce what I, and a great many others believes are extortionate and monopolistic telephone charges. And, yes, they are monopoly charges. Whether deals occur behind closed doors or on general principle, I guarantee, if you examine the charges across the board (leased, ISDN, POTS etc) the difference between the UK telco's is less than 5%. That, to me, is a monopoly.
FALLING OFF CHAIR!
I did write quite a bit on Kingston Communications, who DO offer unmetered internet access at a realistic rate - on THEIR local loop (remember the line on monopolies...) but I appear to have lost the links! I'll put them back in a day or so.
"ARRGHHH! I hear the true xDSL crowd scream, where the ADSL news. Well..., While I was looking, I found a letter from Hull - for a 2Mb ADSL line - it's £55,000 A YEAR + SETUP +VAT. - ONE HUNDRED TIMES MORE EXPENSIVE THAN CANADA....
Not that I'll name names, or say mention that the E1 (2Mbs leased) is £90,000 + + +.
First chance I get, current circumstances aside, I'm on the next flight back to Canada. Don't even care if it mean moving to Yellowknife first. Blowed if I can take this country and its hold 'em back, knock 'em down attitude any longer. Phoeey!
March 19th update
Short note on X-Stream. Trying to log on is still a total waste of time. Even after 3am it is nearly impossible to connect due to engaged tone. Assuming that it's not a con and they only have haft a dozen modems live, then it is something of a statement for them to be so massively over-subscribed that connection is virtually (but not completely) impossible 24 hours a day while it's free. I really must get some figures.
Compaq, in the US at least, is supplier ADSL modems AS STANDARD is a few of their models!!!
March 19th update
Oftel, bless their socks, have demanded that phone operators cut their tariffs for Internet calls. They do, however, resist the idea of free access over the Pubic Switched Telephone Network, as in the US. The article goes on, but in my opinion, it's utter tosh and even if it happens, it won't be major. The gist is the telcos must reduce costs - without "adversely affecting profits." As mentioned earlier, when you (in the UK) dial the ISP, they get a percentage of the call fee. This is just re-distribution of profits.
What I read into it is that the telcos will pay less to the ISP's and pass the reduction to the consumer. AAAArgghhhh! Hello, out there, have you got a ounce of a a clue? This is still billing by the minute. OK, a extra 5% saving, perhaps. What the UK WANT is charge capping if we can't enjoy, free local access.
March 15th update
AOL must read my pages (*grins*) as even they have called for a flat rate charge for Internet access in Europe, saying that the high cost of call charges is smothering e-commerce. The move is said to have come after a number of "net strikes" across Europe by Internet interest groups protesting at high call charges.
You might like this STOP PRESS from this month Network Reseller Magazine
ISP CARANET HAS LAUNCHED CLARACALL, A PROGRAMME FOR ITS CUSTOMERS OFFERING UP TO 40 PER CENT OFF THE PRICE OF DIALLING INTO THE NETWORK. THE DISCOUNT COMES FROM THE MONEY TELCOS PAY TO ISPS TO TRANSFER CALLS.
According to (UK) Trade secretary Stephen Byers, we benefit from a world-class IT and communications structure (so where's my xDSL Ste!?) and one one the most intensively competitive telecoms markets in the world. (With BT strangling the local loop and the rest staying just far enough beyond to appear competitive whilst maximizing profits).
What utter twaddle.
Anyway, for anyone interested, they have published a consultation document about it on :
Look for "Building Confidence in Electronic Commerce" (Link I had is dead).
I'm not touching e-commerce with a barge pole on this site, but I will add a number of useful addresses I have to my links page later.
NTL Cable Modems Press release 20/1/99
OUT-TAKE -
"We fully expect that cable modems will become hot property for serious Internet users," adds Chris Skudder, NTL’s Group MD for Residential Services. "Full details of the package will be announced nearer the launch date, but we can already reveal that pricing will be based on a flat rate monthly charge. This will completely remove the worry about excessive and unexpected telephone bills for households that make extensive use of their Internet connection."
Kind of echoes my views. I believe Microsoft bought a 5% stake in them for $500 million! They estimate release in September - like the date I weaseled out of BT who, I'm informed, appear to be having teething problems with their London ADSL test site.
On a closer note, Easynet, as expected to offer Satellite connections next month. Defeats the object slightly as you still need a modem for the uplink. If this is included in the price - estimated at £460 a year plus £150 for the Mediastar modem - then fair enough.
The X-Stream saga continues.
According to a current news story in today's IT WEEK some analysts are saying that this freecall Internet access model will become the standard when e-commerce trading reaches critical mass, with ISP funding it via advertising and, moreso, getting a percentage from the transactions made. (So don't hold your breath England!).
I feel that I would rather pay the ISP and the flat rate and not have all the intrusive adverts and frustration trying to log on thank you very much. Now give me the darn flat rate model...
March 14th update
I know this gripe isn't ADSL, but it is related, because ADSL isn't just a far faster connection it's also a much cheaper one for anyone who surfs the net to any extent - around 10 hours a week.
Wasted hour after hour trying to (re)connect to X-Streams 0800 dial up to no avail.
Tried re-installing the connectivity software twice to no avail. Last night, fair enough, as the number - on a phone - was permanently engaged. But today I am getting a dial tone but still cannot connect. I am REALLY annoyed about this.
This means one (or more) or three things.
1) Those logged in have left the connection permanently open whether they are at the computer or not. This is pure selfishness and mean minded - like those " " on holiday resorts who put a towel etc on the poolside chairs, then go on a coach trip, in case they want to sit my the pool hours later. Also, that X stream has took no precautions against this by using scripts etc to disconnect users where no activity is recorded over a time. (Assuming they could implement this).
2) The service is massively and hopelessly oversubscribed
3) The server / routers on the freephone number have crashed and burned
4) It's all just a big con! The latter I don't believe as I have managed to connect on the 0800. I have just put this in for the many who will have tried and tried and tried...
The technical support line (£0.50 a minute) do confirm some difficulties and that it is oversubscribed, but that if you are lucky you can connect.
If I can I will get some figured of X-Stream about the number of hits and use them as ammunition against the telco.
Incidentally - will this be a regular thing? No, for 0800 numbers the host if paying for the phonecall!
March 13th update
Check out this news byte on GVC ADSL modems (link dead now)
With every day that passes I get more and more angry and frustrated with the way we are treated by the telephone companies and their relentless heel dragging over the Internet. Can they really so nieve and narrow minded to believe that if - WHEN - someone offers a better deal that they will not lose customers BY THE MILLION.
The Canadian owned ISP X-Stream (now owned by Tiscali (July 2003)) is currently offering FREE - 0800 - dial up connections of a weekend. Along with 20Mb free webspace and free e-mail. Try and get a connection! I got though earlier, but my wife logged me out - I've been trying to re-dial for over 2 hours but the server is grossly oversubscribed.
I would - in front of the entire world - stake my reputation and honour on the following.
"The first telco to offer US / Canadian style billing is guaranteed over 5,000,000 subscribers within the first weeks of promotion."
Dixons [ Freeserve.co.uk ] - now Wanadoo - went from zero to over a million subscribers in a matter of weeks. Given that the saving is around £10 a month, imagine what the response rate to, for example, all calls to one number for a set £20 a month. The telco is assumed of £240 a year income and an immediate rise in the number of subscribers. This is what the consumers want - and cannot get.
I shall begin a survey of the chat rooms around the world and get some concrete examples of just how much we are getting short changed by the Fat Cats CONTROLLING use of the internet by dial up fees that inherently deter connectivity.
I have been accused of being rather extreme in my views. Good. Because my feelings are echoed by almost every single person with a computer in the UK. As a very rough figure, over 10 millions people are believed to have a PC at home. Of these, around 2 million are believed to have an internet connection. And the rest? A great many of these are on lower incomes and cannot afford the telephone bills to connect...
March '99 - Thoughts and update:-
After a lot of thought, given the amount of work involved, I have decided to leave out most of the technical information (ATM, routers, buffer cells etc) as these are only really of interest to Telcos and ISP's, who should be aware already - or extinct...
The bigger picture is, I believe, the true roll-out and availability of ADSL and related technologies like cable modems - and what the heck we, in the UK especially, can do about it. Monopoly concerns, like BT, are controlling the local loops, to stop or slow down any competition and maximise profits for as long as possible. I've some really juicy articles to digest on this from the TMA (Telecommunications Managers Association) and other trade sources.
I genuinely believe that these actions will turn the U.K. into a 3rd world economy. I'm hardly a Harvard Graduate, but I'm not stupid either. Sooner rather than later e-commerce will be truly global, with consumers buying ever more goods over the net. I'm not talking concerns over the use of credit cards, but about dial up charges.
As a Canadian, paying - by the second - sets my teeth on edge like you would not believe. Every second that you are connected you can feel the clock ticking, pushing up BT's bloated profits. Not just BT, all the other telcos are equally as guilty, with the possible exception of Kingston Communications (ADSL vision statement (8th/Dec/98)). The folk of Kingston Upon Hull have long enjoyed the fact (I believe) that they have control of the local loop.
In America, Canada and parts of Europe (depending on location, State, Province) Internet connection for 56kb / V90 varies between $0.00 and $20.00 US a month - for UNLIMITED access. In England, the same connection (before discounts are applied) would cost a whopping £804.69* (inc sales tax / VAT) - around $1,200 US
ADSL and Cable starts around $25.00 a month for unlimited access at far faster speeds.
Go to to MP, to your telco, to the papers and ask WHY!
BT Business Rates * Figures are based on 24 hour connection to the net on a dial up connection (invariably an O845 number). Figures correct at March 8th, 1999. (BT moved the page!)
The end result, for business in the UK and other parts of Europe, is that the 2-5 year lag behind the rest of the world will be so great that it will be impossible to catch up.
Think I'm kidding? Surf their web sites for "ADSL" and "Cable Modems", phone BT or C&W or any of this others in the UK and ask for an ADSL connection (or even a cable modem). If anyone out there doesn't get asked "What's that then?" I'll be extremely surprised. As a test, I phoned Cable & Wireless last week and asked them to send me some information - they sent me a CD and brochure to connect to their dial up ISP service!!!
What's more surprising is the likes of BT acknowledge this importance; go figure! See:
(Search for) Success in Internet time (Link now dead).
Feb 2nd '99 - Short update:-
I'm now receiving several hundred messages a week on xdsl, not to mention technical details from the router & telecoms folk. When I've gone through some of them I'll do a massive update.
One taster, 6Mb/s is now commercially available in the UK - for a mere £500 p.m. (+VAT). Update this week after when I've asked them how they justify 1,000% mark-up...
This is something I am following very closely in the UK. Canadians and Americans, depending on location and ISP, have had the option of cable modems and ADSL links since January 98. Below are some examples; the Canadian ISP is CADVision, based in Alberta, the American ISP is ( ):
| Connection: |
2Mb/s dialup |
2Mb/s dedicated |
7Mb dedicated |
| Canadian ISP (p.a.) | $599 | $995 | $1495 |
| American ISP (p.a.) | $ | $ | $ |
| UK equivalent (at $2.49 Can : £1.00) | £239 | £399 | £599 |
| UK equivalent (at $ US : £1.00) | £ | £ | £ |
| For comparision, ISDN dedicated lines*: | 64kb/s - £4,500 | 128kb/s - £7,000 | 1Mb/s - £34,000 |
*Competitive ISP quote (ex vat). A fair comparison would give US rates, which I don't have yet. They are, however, substantially lower than UK and European prices - up to a tenth, I'm told!
All prices exclude any initial connection fees and equipment costs.
Before anyone starts bombarding me, yes, there are a number of differences between the two, not least of all the upstream rates and yes, dedicated T1 connections will still have their place, though prices will have to fall in line with the States and not just Europe.
This is more aimed aimed at the general public -
- students wanting permanent connections to JANET
- Business (or grandparents...) wanting to try video conferencing
- Gamers who want fast connections to on-line servers offering Quake etc.
- Researchers and heavyweight surfers wanting to slash phonebills
There are million(s) of people in the UK alone with internet access. For those willing to pay the estimated £30 a month fee it will mean no more hassle logging on & off, no more worrying about running up phone bills, not getting fragged in the latest iD server as the ping rate drops.
Web pages will appear almost instantly and links followed without the usual scowls and fingers drumming on the table while images load. Huge files and bug-fixes you've shied away from should load in minutes instead of hours. Nirvana is achieved - at least until the morons out there start filling the bandwidth with mpeg movies of "My dog Spot in the garden".
It is no exaggeration to say it's regular now to get ping rates averaging below 350 down to total failure and, despite connecting at up to 50kbs, average transfer rates down a 1bps - yes that's 1 bit. As I have access through a number of gateways, it's not (always) just the ISP not upgrading. I've taken to doing my surfing in the early hours of the morning now, as I can get sustained rates of 4.5kbs+
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