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COMMUNET Home

COMMUNET Home

COMMUNET  September 1996, Week 2

COMMUNET September 1996, Week 2

Subject:

Re: Community Networks at the Crossroads

From:

Robert Mathews-ICICX <[log in to unmask]>

Reply-To:

[log in to unmask]

Date:

Sat, 7 Sep 1996 21:34:38 -1000 (HST)

Content-Type:

TEXT/PLAIN

Parts/Attachments:

Parts/Attachments

TEXT/PLAIN (49 lines)



On Sun, 8 Sep 1996 [log in to unmask] wrote to COMMUNET 
<[log in to unmask]>:


> I am wondering why a T-1 line runs close to $30,000 a year.  Deos anyone
> know how MCI and the rest of the telcoms are calculating costs?  What
> are the true telcom costs?  How much profit are they making?  What exactly
> do you get for a T-1 line?  If the fee for a T-1 line is outrageosuly
> high, than the state subsidies that Wall Bowen mentioned for rural
> networks are in fact hidden subsidies to the telcoms.


Hi:

        I should perhaps share that the going market rate, not too long
ago for a DS1/T1 from the State of Hawaii (Hi) to a California (Ca) locale
like LAX or SFO was approximately US$56,000/MONTH!   The price has come 
down a bit recently.. but NOT by much.  Going rates have fluctuated 
between the figure above and -15K or -20K/MONTH.   In all fairness 
however, I must submit that opportunities do exist where certain deals 
could be struck for lesser priced circuits.  The GOING rate is still as 
such.

        From a SCIENTIFIC RESEARCH and EDUCATIONAL perspective, entities
here in Hawaii have found it extremely difficult to place a budgetary
figure like this - within the scope of any research proposal, and be able
to JUSTIFY it.  Better still, be counted amongst the sane.  Where would 
one begin in this respect?  :(   

        Profit Maximization takes on a new meaning within such a condition. 
These are thoughts to add.


All the best,
Robert Mathews.
---------------
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     ICICX - International Community Interconnected Computing eXchange
--------------------------------------------------------------------------
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