Re: Data Center Facility Costs

See below.
At 10:36 AM 03/10/2008, you wrote:

>On Fri, Mar 07, 2008 at 01:39:57PM -0500, Alex Rubenstein wrote:
> > > I can say with nearly absolute certainty that the bandwidth, and access
> > > to it, are non-issues (as long as you aren't doing this at the old
> > > family farmstead that is 20 miles away from any Telephone central
> > > offices :-).
> >
> > Why would a "telco centrol office" be involved?
> >
> > If you build a datacenter with the intent of using the local LEC as the
> > means of capacity, you have already lost.
>
>Since some telco people don't understand this, I'll elaborate my
>experience and unstanding of the telco business as one of the largest
>customers in my area.
>
>The local LEC, (NET&T, Nynex, Bell Atlantic, Verizon, and soon to be
>Fairpoint) hates ISPs, takes away our account representative every so
>many months, as they reorganize or downsize, a certain percentage of the
>unionized guys doing the actual work of the LEC badmouth us behind our
>back (others quietly and professionally do their good work). The LECs
>lobby the FCC and local PUCs to take away fiber access and limit
>wholesale access and opportunities. You find something useful and high
>capacity a CLEC can get, and it's a matter of time before the LEC
>changes the availability or prices for the worse.
>
>If you are right about something and they are wrong, and it's important
>to your business, be prepaped to spend 6 digits and 2 years in court
>and at your state capitol for something normal people hash out over a
>beer or coffee in an hour or two.
>
>They sell DSL at less than wholesale rates in the built up areas, and
>put big barriers to entry for DSL in rural areas (remote serviced areas)
>that would prevent any sort of return on investment. Verizon has more
>political skill and ability to get their way at the state level than
>either political party. I'm afraid to understand their national clout.
>Rural areas get the hand-me-downs from the big markets when it comes to
>technology.
>
>Atop all this, Verizon, the biggest LEC, doesn't want to be in rural
>areas doing wholesale or traditional services at all. They want to cash
>out billions and invest it in their cell phone business, leaving a debt
>ridden lesser successor to patch up the existing problems and get caught
>up with the times. Real rosy picture of big bandwidth in rural areas
>huh? Anyone complains, they promise DSL eventually.
>
>The Independent telcos are truly independent and do exactly what they
>want, and find a way to charge for it under the NECA tariffs. If it's
>not NECA tariff material, they aren't terribly motivated to invest. I do
>DSL in the service area of one, and they charge me $2K/month for a t3 to
>go across the street, and another $2K/month for the t3 to crossconnect
>within their CO to their ATM switch. They do overbuild a little into the
>Verizon area, but aren't motivated to sell me any more dark fiber there,
>since they are getting tight on capacity and aren't yet willing to
>increase their capacity and build out on 1 pole on the 1/2 mile existing
>route I need. Apparently this recession isn't making them any more
>hungry, or the million dollars a year they get from the universal
>service fund for switching is sufficient to ensure their stability
>without them needing to persue new business opportunities.
>
>
>--
>/*
>Jason Philbrook   |   Midcoast Internet Solutions - Wireless and DSL
>     KB1IOJ        |   Broadband Internet Access, Dialup, and Hosting
>  http://f64.nu/   |   for Midcoast Maine    http://www.midcoast.com/
>*/

Jason,

      Great post exactly what we see with Verizon in Virginia, and the
nearby Independent Telcos. The only slight disagreement I have is I think
that Verizon is mostly using the money for FTTH rather than their
partly owned "Verizon Wireless" cell phone service.  They spun off 
their Yellow Pages
group as Idearc which was left ridden with $9.1 Billion in debt . 
Idearc represented
4% of the revenue of Verizon but was loaded with 22% of the debt when spun
off.

Regards,
Lyle Evans
Blacksburg.Net




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