garagerock
Premium
join:2002-06-14
Louisville, KY
| Covad, anyone?
This reminds me of Covad's problems with non-paying channel partners.
Why should they continue service if Britsys isn't going to pay? I question them calling customers directly, but I guess all is fair in love and war...
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You're the criminal that never breaks the law. |
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macyh
Ex-Isp
Premium,MVM
join:2001-04-24
Medina, OH
 ·Armstrong Zoom In..
| Cause: New Edge and Britsys channel conflict
IMO,this situation has been coming for some time. Britsys is wrong not to pay their bill and honor their contract. However, New Edge has created a no-win situation for their smaller wholesale ISP customers...and it's affecting end users.
A few facts will illuminate:
- New Edge Networks charges ISP's significantly more for wholesale ADSL services than Covad or the ILEC's. In addtition, the access costs for a wholesale ISP customer to connect to the New Edge backbone are also higher.
- New Edge has their own in house ISP, TransEdge, that competes with New Edge's wholesale ISP customers. TransEdge will sell service directly to end users for just a few dollars more than wholesale.
- Most end user customers in New Edge territories don't expect to pay any more than ADSL customers in ILEC served CO's. TransEdge, New Edge's in house ISP will discount to meet those prices, if pushed. Wholesale ISP customers of New Edge can't discount, they don't have the profit margin to do so.
This adds up to a classic case of channel conflict between TransEdge and wholesale ISP customers of New Edge.
So, this situation is the result of the interaction of the higher cost of providing service, many cheap users who respond to price alone, and a conflict between the direct retail arm and wholesale cost price structure of New Edge.
Damn shame, since New Edge seems to be doing a lot of things right and would otherwise be a very good partner for independent ISP's. New Edge's actions mean customers in New Edge served areas will have less choice for ISP's.
--
Macy Hallock APK Net, Inc. Cleveland, Ohio
[text was edited by author 2002-11-14 14:00:17] |
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dallash
Premium
join:2001-08-17
Little Rock, AR
clubs: | reply to garagerock
Re: Covad, anyone?
I've got to agree... this is pretty straightforward.
You don't pay... you get cut off.
Being a New Edge reseller, I often wondered how they (Britsys) could resell the stuff so cheap. |
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dallash
Premium
join:2001-08-17
Little Rock, AR
clubs:
 ·Vonage
| reply to macyh
Re: Cause: New Edge and Britsys channel conflict
A P K,
I'm with one of those ISP's who resell New Edge.
We are a local provider, and we do pretty well servicing the local area (being local is one of our best advantages vs cable and the ILECs). So far, NEN has done a very good job in not aggressively marketing Transedge to our service area.
I know it's different for nationwide providers like Britsys, but we work very well with New Edge.
Another thing is that we don't even TRY to compete with the ILECs for residential customers. There is not enough margin to make it worthwhile, no matter HOW we get the loops (i.e. ILEC or New Edge). Maybe I'm wrong, but I blame the FCC and the RBOCs for this situation.
If they (New Edge) were to launch a big billboard campaign in our city touting Transedge, things would be different
Just my $.02
Regards,
Dallas |
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c0mmander
join:2001-10-03 | glad i have cable, after years of trying to get dsl and then losing idsl when northpoint went under |
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footballdude
Premium
join:2002-08-13
Imperial, MO | reply to dallash
cut off?
Just curious, do you think Worldcom should be cut off since they owe billions to SBC? |
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dvd536
as Mr. Pink as they come
Premium
join:2001-04-27
Phoenix, AZ
| reply to dallash
Re: Covad, anyone?
said by dallash  :
I've got to agree... this is pretty straightforward.
You don't pay... you get cut off.
Being a New Edge reseller, I often wondered how they (Britsys) could resell the stuff so cheap.
I looked into britsys on their $499 T1 incl loop. guess im kind of lucky they weren't available to me or id be one wondering about my connection. just like they say 'if its too good to be true than most likely it is' |
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NKVD4
join:2001-01-11
Chico, CA | Back to Dial Up
Went back to Dial up and not liking it but oh well..
Maybe once I find a new place to live I'll look into getting my SDSL back. It would be nice but oh well |
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FlyingKiwi
join:2001-02-27
Victorville, CA
| reply to macyh
Re: Cause: New Edge and Britsys channel conflict
Your facts are whacked!!!
First of all TransEdge does not sell ADSL.
Secondly, a friend of mine called TransEdge and a couple other ISP's for service in 23 locations. 19 of those locations had New Edge DSL as the only broadband option, MegaPath won the price war. |
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ECHall
join:2002-11-18
Apopka, FL
| We can help you!
To all Britsys customers and any others who may be losing their DSL connections:
We at Atlantic.net are a nationwide provider of New Edge DSL and have a great relationship with New Edge. We can pick up your service for an affordable rate. Please email EHall@atlantic.net with your name, address, and phone number and we will contact you to get your service reestablished.
Thank you! |
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Mark K4
join:2002-11-18
Weston, OR
| New Edge plays dirty
I've been watching this play out for a while. The president of BritSys has publicly stated that New Edge offered very liberal credit terms to get a lot of ISP's signed up and reselling their service. They would offer up to 90+ terms, so as to let the ISP's grow their business while still offering support. This "partnership" was taken advantage of by a number of ISP's like and including BritSys. Then, suddenly, New Edge altered their credit agreement, demanding that those ISP's who were using their previously liberal credit terms pay up, and do so to current and do so immediately. New Edge refused any and all attempts to negotiate a repayment arrangement that didn't cut off the resellers.
This, of course, was a very nice way of getting ISP's to expend large amounts of marketing money, collect the money for the services, and then, after yanking the rug out from under the resellers, getting all the customers for themselves. Or, at least that's my take on it.
Of course, there's always 2 sides to every story... But I have little reason to believe BritSys's claims... It just makes too much sense.
I was about to do business with New Edge myself... But since I don't like wholesale screwing, I guess I'll find someone else to do business with. |
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oOPHYDEAUXOo
join:2002-10-03
Twinsburg, OH | reply to ECHall
Neverminding the apparent plug...
Aren't sales people sooooo nice in someone's time of need? |
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ECHall
join:2002-11-18
Apopka, FL | Some are. |
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notso_dumb
join:2002-11-08
Riverside, CA | reply to Mark K4
Re: New Edge plays dirty
It is funny how when things like this happen there are so many clueless people here to offer their opinions. I think before forming an opinion it is better to call both parties, then add both stories together and there is the real answer. |
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Mark K4
join:2002-11-18
Weston, OR | Averaging the differences isn't going to find the truth at all.
The truth is whatever it is. Trouble is, you don't know if either side tells it or not. "Averaging" gets you NOT the truth, regardless. |
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crimsoncrab4
join:2000-08-04
San Francisco, CA
| Ah.... i remember those crazy, costly DSL days...
Best thing I ever did was get CABLE! Rarely have problems with outages or service degradation and never any with bankruptcies and failed ISPs.
NEN was suppose to be the last frontier. Ooops! Guess the greed factor gets everyone's goose!
LOL!! |
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