On Jul 22, 2014, at 13:55 , Scott Helms <khe...@zcorum.com> wrote:

> Owen,
> 
> This specific issue has nothing to do with splitters versus all the fiber in 
> home runs.  If you buy a shelf that can support 16 ports of PON or 96 ports 
> of Ethernet you will pay more per port than if you buy a shelf that supports 
> 160 PON ports or 576 ports of Ethernet.  If every ISP has to buy their own 
> layer 2 gear that's what happens.  If that gear has to all be hosted in a 
> central meet point then that room will need much more power, space, and 
> cooling.
> 
> "Not really... You buy OLTs on a per N subscribers basis, not on a per N 
> potential
> subscribers, so while you'd have possibly Y additional shelves per area served
> where Y = Number of ISPs competing for that area, I don't see that as a huge
> problem."
> 
> There are scenarios where it doesn't matter, mainly where the number of ISPs 
> is very low.  If we only have 4 service providers trying to offer services in 
> city then the extra power and heat isn't that big of an issue and the wasted 
> money in chassis and management cards is only in the 10s of thousands of 
> dollars.  The problem is that you very quickly, as the city, run out of a 
> location that has suitable space, cooling, and power.  Remember that each 
> extra shelf has the same power supply and heat dissipation.

Areas that will attract a high number of ISPs will have sufficient subscriber 
density to justify larger-capacity shelves for each of them. Places where ISPs 
will buy smaller capacity shelves are places that will have a low number of 
ISPs.

> 
> 
> "OTOH, if the municipality provides only L1 concentration (dragging L1 
> facilities
> back to centralized locations where access providers can connect to large
> numbers of customers), then access providers have to compete to deliver
> what consumers actually want. They can't ignore the need for newer L2
> technologies because their competitor(s) will leap frog them and take away
> their customers. This is what we, as consumers, want, isn't it?"
> 
> No, what we as consumers want is inexpensive and reliable bandwidth.  How 
> that happens very few consumers actually care about.  What they do care about 
> is the city saying we have to raise $300,000 extra dollars in bond money to 
> build a new facility to house the ISPs who might want to collocate with us.

No, what consumers want is cheap reliable bandwidth that doesn't become slow 
and antiquated in a few years.

Frankly, I don't care whether it's a municipality or an NGO or a private 
enterprise. What I want is a law that says "If you operate L1, you can't play 
at L2+. If you operate L1, then you must offer the same product offerings to 
all L2+ providers on the same terms at the same price.". If you've got that, 
then someone will find a way for everyone who wants to compete for L2+ services 
in a given area to get or create an L1 capability that they can share.

Doesn't seem to me that it would be that hard to justify building a colo and 
SWC together in most cases. $300,000 sounds pretty cheap, actually.

Owen


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