theBOFH
join:2003-08-27
Waterbury, CT
1 edit | Re: Cable Only said by Not so fast:
Nice try bud, but you're evading a critical point with all your BS.
"The costs of the capex infrastructure amortized over the life of the equipment, the cost of transit and peering."
Yep, but why are these costs so high? These are part of the artificially inflated costs. Simply shifting from the cost of a router to other expenditures is an obfuscation. Nice try though.
Start an ISP with multigigabit backhaul between POPs, dispersed throughout the country. Purchase enough transit from multiple providers to service your multigigabit network. Purchase routers capable of servicing said links. Guarantee 1.5Mbps symmetrical with an SLA and sell this for $40.00. Time how long it takes you to go out of business.
Better yet... lay your own fiber between POPs, build your own buildings that your POPs will occupy. Develop a new last mile delivery method, so you don't have to rely on the fiber and copper of the ILECs to get your cheap bandwidth to your customer. Create a business plan, taking into account all of the potential variables. Offer 24x7 support, SLAs, 1.5Mbps symmetrical at a price point of $40.00/month.
Show me a positive ROI within 24 months, and I will fund your venture.
As far as capex, I'm sorry, but quagga on Intel/AMD/etc will not support gigabit throughput, so you'll have to purchase Cisco or Juniper for your POPs. They aren't cheap and there are reasons why. Do you think some kid with linux and an old Dell can provide the stability, scalablity and performance of routers and switches made by the likes of Cisco, Juniper, Foundry, Extreme, RedBack, etc?
Prove me wrong. Design a router than can forward packets at near line speed... Say a 1Tbps backplane? Offer the ability to insert cards that will support Ethernet, OC3 through OC192, T1 - T3, HDLC, SONET, ATM. How much can you sell it for? Who is going to design it for you? Will they design it for free? Who is going to manufacture it? Who is going to respin the boards when you realize you've made a design flaw? Who's going to design the ASICs and manufacture them? Don't tell me you'd use an FPGA for the logic on this magical device? Sill, who'd program the FPGAs?
Things cost money. That is my only point. There is no bandwidth cartel that is secretly setting arbitrary prices on bandwidth so Johnny Consumer (who likes to download "warez", "pr0n", movies, and mp3s) has to pay $30 more a month to get a business class DSL or cable connection (which is still cheap. very cheap...) After all, you could be paying $600-$1000 a month for T1 or frame relay. Unless, of course, Cogent is able to drop 100Mbps to your location for $1000/month.
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