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Bluntly i think the whole question is disingenuous and just another how
can we charge more for XX mantra without doing diddly except change the
calculations <br>
<br>
10 years ago we called this the French fry question<br>
<br>
Extract here ::: <br>
<p><i><small>The next component that you add to make CONNECTIVITY work
is TRUST. </small></i></p>
<p><i><small>Those of you who stopped at McDonalds this morning trusted
that you could get breakfast including coffee for about $4. That’s how
McDonalds makes money: anticipating customers’ needs and meeting them.
What would you do if one morning the same McDonalds offered you a
single French fry for $10 and when you complained they haggled the
price down to $7.50? I know this sounds silly but bear with me. You
would think that they had gone nuts! And you would be right. Trust
would have broken down and you would go elsewhere for your breakfast. </small></i></p>
<p><i><small>This is what has happened in the connectivity market. The
basic infrastructure vendors, whom you trusted to anticipate your most
basic business need (CONNECTIVITY), are now in haggle mode. They are
focused on how many French fries you want instead of looking for the
right price and quality of your breakfast. This is what US West and
their partner in crime, AT&T, are doing with connectivity. </small></i></p>
<p><i><small>One thing I hear all the time is “How much connectivity do
you really need?” I call this “the French fry question.” 1 megabit (1
fry)? 10 megabit (fries)? How much are you prepared to pay? Or even
worse with DSL/ISDN, “How much of a piece of a French fry do you want?”
People keep trying to set a ceiling on an unknown need and then work
backwards. If you stick a “this is a large box of French fries” label
on one French fry, what do you have? Still one French fry! If you stick
a Ferrari label on a tortoise you do not get a faster, or more
valuable, tortoise.<br>
</small></i></p>
<p><small><big>Full text here <a class="moz-txt-link-freetext" href="http://www.ideapete.com/leapfrog.html">http://www.ideapete.com/leapfrog.html</a><br>
</big></small></p>
<p><small><big>DT in their Qwest US West endeavor calculated that they
would need to supply the following and this was in 2000<br>
</big></small></p>
<p><small><big>Extract here:<br>
</big></small></p>
<ol>
<li><small><i>Homes want video on demand. So, calculate the number
of NM homes X 35 meg (that's megaBYTE, not megaBIT) per second
(streaming video speed). </i></small></li>
<li><small><i>Business will need approximately 300% more than homes.
That’s 100 meg per second X the number of New Mexico businesses. </i></small></li>
<li><small><i>Government and research labs and are ultra high speed
users that require 1 gig per second. Multiply the number X 1 gig. </i></small></li>
</ol>
<p><small><i>All these speeds are basic inside buildings, so why not
between buildings? Therefore the infrastructure demand map of NM is a
representation of the above calculations and where the different
categories of users are. SIMPLE! But apparently the major incumbent
telecom and consultants want excess millions of dollars to work this
out.<br>
</i></small></p>
<p><small><big>I don't know of anyone who uses an electronic system for
speed, what they use are services which are mostly hampered by the lack
of it and thats piss poor engineering.<br>
</big></small></p>
<p><small><big>We run bandwidth monitors on all our systems and
although we pay for 6 meg a second down ( really .75 megabytes ) but
rarely see 60% even on forced traffic that collapses at the weekends
and after 6. . We recently had the snake oil salesmen trying to sell us
10 meg services ( really 1.25 megabyte ) and we said fine lets see your
SLA and he was dumbfounded that anyone would want one after we
explained what it as<br>
</big></small></p>
<p><small><big>Whats happening here is that some nice political
promises are being made to raise taxes without really doing anything
but frustrate the user.</big></small></p>
<p><small><big>Anyone in IT knows is you supply a meg a meg will be
used same with a gig and onward up to pet and those are bytes not bits<br>
</big></small></p>
<p><small><big> Service application need always drives components and
speed not vice versa<br>
</big></small></p>
<p><small><big>Use goes up cost goes down EXCEPT with bandwidth<br>
</big></small></p>
<p><small><big>( : ( : pete<br>
</big> </small></p>
<p></p>
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<br>
<br>
John Brown wrote:
<blockquote cite="mid:486C065E.7040203@citylinkfiber.com" type="cite">
<pre wrap="">two ways of improving the balance sheet.
increase revenue
decrease costs
I hate to say it but, IMHO, many of the providers out there today like
to quote inflated costs to the regulatory world to help support rates.
Maybe I just don't get it and will learn someday that its the right way
to do it ;)
much of the inflated costs could also be attrib'd to sloppier practices
and not running as tight of a ship as possible......
John Brown, CTO
CityLink Fiber Holdings, Inc.
Albuquerque's first FTTH provider
</pre>
<br>
</blockquote>
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