On Thu, 22 Mar 2001, Ely Levy wrote:
> You actually sort of proved my point,
> it's not a problem in ISP but in how israel treat them.
> With how bezeq leech small isps and make them pay tons of money for
> tashtiot. and how the israel govermenet doesn't do anything about it.
my dear miss-informed ely. bezeq has very little to do with prices of
_international_ links from israel to europe or the USA. such links are
leased from companies such as med1 (or their name is lev1), euronet,
israsat, etc.
> the reason 012 gives such low prices it cause they have thier own link to
> the backbone.
the reason they give such prices is because they use them out as a 'loss
leader'. they are loosing on their internet business, like everyone else
in the industry here. only the smaller ISPs are standing on the break-even
point (and remain there for quite a while so far, except those that went
bankrupt over time).
so, get this strait - the price of leased lines between israel and abroad
has got nothing to do with bezeq. it does shrink dramatically over time,
but is still much higher then it is in the states (for example). one
reason is probably because we're still a small market. as the market
grows, so will these prices reduce, until (perhaps) we get to the price
levels you have in the states. _then_ you'd be able to expect high
bandwidth.
for a slight comparison - in 1996, a fiber-optic T1 link to the states
cost about 1,000,000$ per year. a satellite link cost around 750,000$.
at those days you could fit approximately 200 concurrent users on such a
link to give them their full bandwidth (of an 28.8kbps modem).
these days, you can buy such links at a price of (approximately) 100,000$
or 200,000$ a year (i might be wrong by a factor of 2, btw). so the price
was reduced by a factor of 5 or 10. at the same time, the bandwidth users
take has grown significantly - many business users using frame relay and
sifranet links. regular modems download at approx. 40kbps (assuming a
57.6kbps modem manages to make a connection on at that speed due to
various line condition problems). many users use ISDN (64kbps). some use
dual isdn (128kbps), and a few use ADSL and cable modems. so you can't put
200 users on a T1 link now - you can put much less then that (probably 100
or less, to get a satisfactory speed).
there are also other factors in the game, but i hope this gives you some
idea. i'm not sure about the accuracy of my current figures, btw. and
these figures are changing every few month due to increased competition.
and no - bezeq is not very much in this game. and no - israeli ISPs don't
buy their bandwidth from bezeq. in fact, many now buy it from kavei zahav
and barak (which probably bought it from med1 and co.).
--
guy
"For world domination - press 1,
or dial 0, and please hold, for the creator." -- nob o. dy
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