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:
 ·Vonage
| 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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FlyingKiwi
join:2001-02-27
Victorville, CA
| reply to macyh
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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