Peter,
" Other figures from research firms like Forrester
show that only about 40% of Americans have high-speed connections at
home, 30% rely on dial-up and 25% don’t have any Internet connections at
all!"
I do not disagree with those statistics. I disagree with your statement that
most DialUp users are DialUp users by choice, and that most people that
don't have Internet are doing so by choice. The facts are, 60% of America is
under served, which is both embaressing for the US, and a call for
opportunity. In todays world, there is justification for every home in
America to have broadband and to have a computer. Not having a computer, is
no longer a valid arguement. Even the most impoverished homes, can manage to
budget to buy a $300 computer from BestBuy, that includes monitor and
printer. Or for that matter to get a FREE used donated computer. A pentium
pc, does Broadband fine (although slow and problematic). The reason people
do not buy broadband, is NOT price. It doesn't need to be cheaper. There is
already cost justification, the end user just doesn't always realize it at
first. Understanding that the Average DialUp user is paying $35 a month
already (line and service). The problem is that broadband is to cheap. So
large players can't justify expansion into lower profit centers, by
subsidees of higher paying subs. The problem is that users DO NOT HAVE
OPTIONS. USERS HAVE NOT BEEN SOLICITED WITH PROPER SALES AND MARKETING TO
CONVINCE THEM THEY NEED IT, BECAUE IT IS POINTLESS WHEN IT IS NOT AVAILABLE.
One of the biggest mistakes I made in this industry, which I am paying for
now dearly, is I did not recognize the market. I was bold, ambitious, and
competitive, and wanted to prove I was good as any one else, and hit the
competition head on in their prime territory. Its not about win or loose, I
often won. The issue is its a hard war and a peric victory. What I didn't
realize is that the under served market was actually the larger market over
the "tier1 prime market". 60% underserved, 40% served. Why in the world
did I decide to go after the smaller market with more competition? This is
the only reason, that DIAL UP providers still hold half the US's Internet
traffic, providers are stupid, and don't properly identify the gravy when
its already stearing them in the face at the table. In my defense, I have
the excuse that I live in a Urban Tier 1 market.
This is why "WIRELESS" is such an exciting play today. We have a completely
different economics and different set of limitations and criteria than
wireline providers. We often can do well what they can't, although limited
in other areas that they do well.
Wireless on the other hand, is still to expensive on a individual level, to
replace Dial Up. The cable isn't already there, we need to actually deploy
something, and wireless companies do not yet have the same support structure
that monopolies and utilities have. I'd argue that under served America is
NOT the fault or choice of consumers, it is the CLEAR undisputed failure of
Governement officials and legislators and wireless manufacturers. The
manufacturers have an excuse, they don't want to risk money on a potential
business model, when the industry has zero support by the governement. It
important not to confuse what I am saying, this is NOT a request for Muni
broadband. The problem is that somewhere along the line, the Governement
decided that it is no longer necessary to support small business. Set up
programs that gives it all to the goliath companies. They'd rather develop
programs to support a super company, than thousands of companies that could
work togeather to create a greater more efficient army. Everyone wants
Earthlink. Yeah, thats going to be fast, as they all wait in line for the
same company. Forgetting that the people that want to bring broadband to
the underserved with a vengence are the ones that live their and know the
deficiency and market exists. Any way you slice it, a small local company
can deliver service more accurately and quickly, and more sincerity for
quality, for all the advantages that the local provider possesses.
Sometimes I wish our governement was run by Pre-Schoolers, because even they
get it, and are tought the principles early on. You don't hire a giant, to
crawl into a tiny crawl space, they don't fit, no matter how big and strong
they are. Its OK to be small.
The truth is a broad statistical survey will never bring out the true
feelings of all the people needing served. Small samples do not adequately
find the holes full of frustrated people.
Your local provider know who these people are. What the country needs is
not governements facilitating exclusivity in exchange for incouraging third
party investment in their communities, to put their local community
professionals in the field out of the business. What this country needs is
powerful support for the small local company. Every local government should
be asking themselves, "who is in town" and "how many of them can we help"
and "in what way". Because these are the guys that care about their local
town, and know their towns first hand.
The day this happens, the politics and public deception will be over.
It will take a long time for the small independant provider to tackle the
problem alone. But if the governement had the guts to start spending
consumers tax dollars to help the army of small providers help the
consumers, it could happen a lot faster. They need to stop begging money
and help from the big companies, and use tax dollars whats it for, helping
the people. If they spent just a fraction of what they budget for Public
Safety and Homeland security, to help small providers, the problem would be
solved. Dial Users would quickly start to switch to their friendly local
broadband provider. The problem today, is the Urban is handled by default,
RUS handles the lowest 1% of the market, but the other 59% of them go
unrepresented.
If the small providers had the help, they could easilly do the volume that
is needed to encourage manufacturers to built better cheaper gear. And with
better cheaper gear, ISPs could develop value propositions to make broadband
affordable to convert Dial Up from.
Tom DeReggi
RapidDSL & Wireless, Inc
IntAirNet- Fixed Wireless Broadband
----- Original Message -----
From: "Peter R." <[EMAIL PROTECTED]>
To: "WISPA General List" <wireless@wispa.org>
Sent: Wednesday, September 20, 2006 9:58 AM
Subject: Re: [WISPA] Lack of Competition
Which stat don't you like Tom?
The PEW Report:
http://www.pewinternet.org/pdfs/PIP_Digital_Divisions_Oct_5_2005.pdf
"As of May-June 2005, 68% of American adults, or about 137 million people,
use the
internet, up from 63% one year ago. Thirty-two percent of American adults,
or about 65
million people, do not use the internet and not always by choice. Certain
groups continue
to lag in their internet adoption, including Americans age 65 and older,
African-
Americans, and those with less education."
Numbers vary depending on the poll/survey/source.
From America's Network:
"Some 62 million Americans are still using their telephone lines to dial
into the Internet, according to recent figures from the Pew Internet and
American Life Project. Other figures from research firms like Forrester
show that only about 40% of Americans have high-speed connections at home,
30% rely on dial-up and 25% don’t have any Internet connections at all!"
So how come the US is lagging behind most of the developed world in
broadband access? Some analysts cite price as a factor, but that seems
doubtful. DSL deals from Verizon and ATT often are priced below monthly
dial-up rates, and millions of cable television customers can get
cable-modem service packaged at a discount with their TV and phone
service. So why stick with slow dialup?
The main problem seems to be the free-market telecom frenzy that has
enveloped the US (and much of its population) in technology and price
uncertainty. With no national broadband policy in place, multiple service
providers are targeting affluent urban areas, while leaving many poor and
rural dwellers to fend for themselves. In big cities, that means consumers
face daunting broadband choices. Should they sign a contract with their
cable provider or telco? Wait for the installation of a Wi-Fi network?
Choose an alternate provider like EarthLink? And which broadband
technology is the best? Many just stick with what they know best: the slow
but reliable telephone.
Even the service providers themselves are confused. A plan by the city of
West Hollywood, Calif. to install Wi-Fi has stalled for two years because
the local utility company can’t decide whether to grant a right-of-way for
the equipment on its lampposts.
Inevitably, this is going to change, but the change would come much more
quickly if a national policy and direction were put into place, consumers
knew what to expect and the service providers better focused their
efforts. Until then, Americans will have another reason to worry about the
rise of China.
---------------------
Doesn't matter if you like or believe the numbers. The fact is that
Broadband growth has stalled. So ISPs have to find out why (fear, tired on
PC troubles, too much crap, don't need the internet, no PC to use) in
order to have growth in those flattened or no-growth areas.
- Peter
http://radinfo.blogspot.com/2006/09/broadband-policy.html
Tom DeReggi wrote:
Peter,
I do not agree with those statistics.
Why would anyone prefer DialUp for the same price? Don't think so.
A large part of that 68% are DialUp Users NOT by choice.
Tom DeReggi
RapidDSL & Wireless, Inc
IntAirNet- Fixed Wireless Broadband
----- Original Message ----- From: "George Rogato" <[EMAIL PROTECTED]>
To: <[EMAIL PROTECTED]>; "WISPA General List" <wireless@wispa.org>
Sent: Monday, September 18, 2006 7:49 PM
Subject: Re: [WISPA] Lack of Competition Leaves U.S.16th Among
IndustrializedNations
Peter R. wrote:
We are actually at the point where about 68% of the US population has
Internet.
The rest don't own a computer or do not want Internet.
Some of that 68% is still on dial-up. For some it is a price thing. For
some it is not understanding technology. For some it is to make the
experience painful to avoid wasting hours on the internet.
So dropping the price - as SBC and VZ have experienced - to sub-$15
gets you some dial-up conversions. But when the price returns to
normal, some switch back to cheaper dial-up.
The dilemma becomes How do you get more internet appliance (PC's,
laptops, PDAs, internet terminal) penetration?
The marketing question is: What Remarkable & Useful things can you do
with broadband (other than entertainment)?
That's my 2 cents.
Peter @ RAD-INFO, Inc.
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