RE: An Attempt at Economically Rational Pricing: Time Warner Trial

From: Frank Bulk (no email)
Date: Mon Jan 21 2008 - 20:07:42 EST

  • Next message: Frank Bulk: "RE: An Attempt at Economically Rational Pricing: Time Warner Trial"

    Your points about the marketing and usage value of higher asymmetric is
    right on. Not only are the higher numbers attractive, they generally
    reflect a residential subscriber's usage pattern (there are some on this
    listserv who have pointed out that those with very high symmetrical speeds,
    100 Mbps, for example, do have higher upstream, but I think that's because
    they are more attractive P2P nodes) and so residential broadband networks
    have been designed for asymmetric service. One of the reasons that business
    broadband is more expensive is that they not only use their 'pipe' more
    heavily than a typical user provisioned with the same speeds (i.e. bandwidth
    costs are more), they also prefer a symmetrical connection for their e-mail
    server and web traffic which requires different (lower volume and more
    expensive) equipment and/or they consume more of that shared upstream link.

    BPON/GPON is also asymmetric, as you point out, but because the marketed
    highest-end speeds are a fraction of the standards' capabilities, the
    asymmetry and potential oversubscription are easily overlooked. This works
    to Verizon FiOS' advantage while marketing its symmetrical plans.

    I personally prefer Active Ethernet-based fiber solutions for the reasons
    you allude to -- they more closely match enterprise network architectures
    (that's why we see Cisco in this space (i.e. Amsterdam's fiber network) and
    so networks of this type can leverage that equipment, volumes, and pricing):
    symmetrical in speed and switched. The challenge with the Active Ethernet
    architecture is that most often active electronics need to be placed in the
    field, while many PON solutions can use passive optical splitters.

    Frank

    -----Original Message-----
    From: Sean Donelan [mailto:]
    Sent: Monday, January 21, 2008 4:47 PM
    To: Frank Bulk
    Cc:
    Subject: RE: An Attempt at Economically Rational Pricing: Time Warner Trial

    On Mon, 21 Jan 2008, Frank Bulk wrote:
    > You're right, the major cost isn't the bandwidth (at least the in the
    U.S.),
    > but the current technologies (cable modem, DSL, and wireless) are
    thoroughly
    > asymmetric, and high upstreams kill the performance of the first and
    third.

    There are symmetric versions for all of those. But ever since the dialup
    days (e.g. 56Kbps modems had slower reverse direction) consumers have
    shown a preference for a bigger number on the box, even if it meant giving
    up bandwidth in the one direction.

    For example, how many people want SDSL at 1.5Mbps symmetric versus ADSL at
    6Mbps/768Kbps. The advertisment with the bigger number wins the consumer.

    I expect the same thing would happen with 100Mbps symmetric versus
    400Mbps/75Mbps asymmetric. Consumers would choose 400Mbps over 100Mbps.

    > Long-term, fiber avoids the upstream performance issues.

    Asymmetric fiber technologiges exists too, and like other technologies
    gives you much more bandwidth than symmetric fiber (in one direction).

    The problem for wireless and cable (and probably PON) is using shared
    access bandwidth. Sharing the access bandwidth lets you advertise much
    bigger numbers than using dedicated access bandwidth; as long as everyone
    doesn't use it. The advantage of dedicated access technologies like
    active fiber (or old fashion T-1, T-3) is your neighbor's bad antics
    don't affect your bandwidth.

    Remember the good old days of thicknet Ethernet and what happened when
    a single transceiver went crazy, the 10Mbps ethernet coax slowed to a
    crawl for everything connected to it. The token ring folks may have
    been technically correct, but they lost that battle.

    There was a reason why IT people replaced shared thicknet/thinnet coax
    Ethernet with dedicated 10Base-T pairs and switches replaced hubs.


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