Re: AT&T: 15 Mbps Internet connections "irrelevant"

From: Sean Donelan (no email)
Date: Sat Apr 01 2006 - 05:25:40 EST

  • Next message: David Lesher: "Re: AT&T: 15 Mbps Internet connections "irrelevant""

    On Sat, 1 Apr 2006, Mikael Abrahamsson wrote:
    > http://arstechnica.com/news.ars/post/20060331-6498.html
    >
    > "In the foreseeable future, having a 15 Mbps Internet capability is
    > irrelevant because the backbone doesn't transport at those speeds," he
    > told the conference attendees. Stephenson said that AT&T's field tests
    > have shown "no discernable difference" between AT&T's 1.5 Mbps service and
    > Comcast's 6 Mbps because the problem is not in the last mile but in the
    > backbone."

    You can listen to Randall Stephenson's presentation at the BoA conference
    at the site:

    http://www.veracast.com/webcasts/bas/media06/id98101155.cfm

    This particular topic is in the Q&A towards the end of the talk.

    It was a financial analyst conference, so the technical language was
    probably a bit loose. AT&T has an OC192+ backbone, so obviously it
    wasn't a technical answer. At other conferences, other speakers have
    publically said they are also looking at bonding pairs to get even
    greater link speeds (40-100Mbps), not to mention other dedicated
    Internet access products with even faster link speeds. You have second
    phone lines, why not second DSL lines for people who feel the need for
    speed? Likewise cable modems (DOCSIS3.0) are adding channle bonding for
    higher access link speeds.

    But I think Mr. Stephenson's point was a network bottleneck is not always
    based on the access link speed some ISPs put in their advertising. Just go
    to any ISP user forum and you will see long threads complaining they can
    only download X Mbps from site Y in city Z. The bottleneck may be the
    remove server, a peering interconnect, a backbone link, a city router,
    etc. On the other hand, its not a good idea to generalize because other
    users in other cities may get better performance from other sites.

    There are also differences in how people use the network. Power
    users and gamers are looking for any edge they can get. Casual users
    may be more price sensitive and may not perceive enough of a difference
    between 6Mbps and 16Mbps for what they do. If you consider it from a
    marketing point of view rather than a technical point of view, if you
    are a mass marketer where do you find the biggest target markets?
    Wal-Mart targets a specific price point and target market and is very
    successful even though it doesn't sell ultra high-end goods.

    That's not to say things are static, and will never change. If you
    listen to Stephenson's presentation, he says access link speeds will
    increase, as well as the backbone capacity will increase. For financial
    analysts, the foreseeable future is the next quarter's financial
    results. Next year is long term. Two years is an eternity.


  • Next message: David Lesher: "Re: AT&T: 15 Mbps Internet connections "irrelevant""





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