It means what the contract says it means, but there's probably at least 3 
issues:

1)  Taking away potential customers.

2)  Whether it is shared/oversubscribed service (either residential or 
commercial), or DIA which by definition is dedicated bandwidth that you can use 
100% 24x7 if you want.

3)  Who has the end customer relationship, for purposes of AUP/TOS, 
maintenance, etc.  I will no longer sell through middlemen, where I don't have 
the end customer relationship.  If someone wants a commission of some sort for 
bringing me the sale, that's different.  But if the customer wants to open a 
trouble ticket, I want them to call me, not some reseller.  If we see a 
violation of our terms of service, or get a court order from LEA regarding 
customer's use of the connection, or an abuse report, or we need to do 
maintenance or a repair, I want a name and number to call.  If the connection 
is down, I want an actual site contact to find out if power is on, etc.  If we 
do a dispatch, I want a contact for someone who will meet us at the site.

We've all heard stories of WISPs who get calls about an outage or lousy service 
from customers they don't recognize, only to discover that a customer is 
reselling their service to several neighbors.  You go to a site like 
speedtest.net and it tells you the provider, not the reseller, so that's who 
you badmouth for having bad service.  Even if it's the guy with the Linksys 
router in the Tupperware tub who is reselling the service.

Comcast has had cases where some guy orders one residential cable connection in 
each of several dozen MDUs, and then goes into business selling that service to 
the other residents, at a rate below Comcast's retail rate.  So they don't get 
any other customers in those buildings.  Needless to say, they got their 
lawyers involved.

-----Original Message-----
From: AF <af-boun...@af.afmug.com> On Behalf Of Adam Moffett
Sent: Monday, August 17, 2020 7:02 PM
To: af@af.afmug.com
Subject: Re: [AFMUG] What is “reselling”?

I think if you provide some significant part of the infrastructure required to 
reach that end user then you're not reselling, you are just the next tier in 
the chain of service providers.  The ongoing use of the concepts of "Tier 1" 
through "Tier 3" providers supports that notion.

I've always thought of reselling as being a middle man in the sales channel 
without putting in significant last mile infrastructure.  At one time we were 
reselling Verizon DSL.  We had a connection to them and they would somehow L2 
bridge the DSL traffic from our customers' lines over an ATM circuit to our 
office.  We provided AAA and L3 connectivity to the Internet, but they provided 
the entire last mile connection.  If you paid them more per unit they would do 
the entire thing from the house to the Internet and all you did was push money 
around (and take the support calls).  Those are clear reseller scenarios.

To Chuck's comment about the AUP: I would definitely disallow the first 
practice unless someone is paying appropriately for a Tier2 service.  I don't 
actually care if they do the second scenario. If they want to buy my service 
and mark it up $20 and call it their own then I 100% don't care (MSP's do that 
all the time, in fact).  I'm getting paid either way.  I might even be inclined 
to encourage that if the middle man is competent.

-Adam


On 8/17/2020 6:54 PM, Matt Hoppes wrote:
> Define “reselling” a circuit.
>
> Obviously getting a connection and sticking customers on the provider’s IP 
> addresses would be reselling without a doubt.
>
> Is running a tunnel over a circuit back to a data center and sticking 
> customer traffic in the tunnel reselling?  I would think not as the only 
> thing the connection is carrying is my VPN traffic.
>
> So now further down the rabbit hole - if the provider supports BGP and I’m 
> using my IP addresses - am I “reselling” the provider’s service or mine?

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