> CO facilities rental.  CO equipment.  Data link between CO 
> and ISP NOC (T1, multiple T1s, or even T3 or other *REALLY* 
> high-speed stuff).  ISP backbone equipment.  
> ISP servers (DNS, mail, etc.).  ISP NOC facilities charges.  
> Test equipment. Support/service/administrative overhead.  
> Upstream feed.

The exsiting ISP, be it Vitts, MV, Joe Blow local ISP, they should
already have ISP backbone equipment in place for their dialups. At the
most they'll have to upgrade their pipe or get an aditional T and they
can do this while new customers roll in.. That's what MV did. DNS and
POP mail (what most ISPs offer) you can run on a beefy workstation for
the most part unless you have a MASSIVE customer base, then you just get
a big 'ol Dell server and be done with it. I found when I did tech
support that it was FAR easier to deal with troubleshooting DSL problems
then dial-up.
 
>   When we resold Vitts Networks (before the went under) back 
> in 2001, their up-front cost to open a CO was between 
> $200,000 and $300,000.  Each.

Yah, and Verizon was already rolling out Cos for their DSL service, and
there's all the other ISPs out there. There is no reason for one ISP to
eat the cost of an entire CO

>   I'm not familiar enough with CATV infrastructure to speak 
> accurately, but I imagine the situation is similar, if not 
> quite as bad.

The way cable modems work is TOTALLY different the DSL, it works on a
node system and has some token-ringish qualities to it.. It is "shared"
bandwidth but you would have to have TONS of people on one node to
notice anything. When I was working for M1 they had about 200-300 people
per node in NH/MA.. In LA they had over 1000 on some nodes.

> > When Mediaone delivered cable-modem service in our area 
> they thought 
> > they'd be doing well if they got a 3% penetration.
> 
>   Pets.com thought they could make money selling pet supplies online.
> 
>   They were both wrong.

The difference here is that M1/AT&T/Comcast were already established.
Also it wasn't just for internet, it was also for digital cable, push
the button on the remote PPV, music, and phone service. The cable TV
alone probably makes more then enough to cover the cost of the upgrade
of the lines (that also stops "leakage" something that had to take care
of anyway)
 
>   No, we're not.  But other than the local loop, everybody's 
> using the same kind of equipment they were using five years 
> ago.  As for the local loop, DSL and cable both require 
> significant new equipment to be placed in the CO, completely 
> outside the traditional infrastructure.

You know that Verizon has been getting ready for DSL stuff for years and
probably would have been rolled out sooner if the cable modems came out
sooner. The only reason they didn't start rolling it out was because
they didn't have to and they could still milk people for second phone
lines for dial-up modems.
 

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