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On The Future of ISPs, Both Large and Small... 111

DwnaboutDSL asks: "I work for an unamed ISP, its decent size but still basically a local company. Months ago, we were bought out by a company which is nationwide, with some international ties as well. I can't mention either company by name due to confidentiality, however, what was said is quite frankly disturbing at best. In a press release which is to be released sometime during the evening of April 5th, our parent company is going to be dropping the axe on roughly 2000 employees. Nationally, we only have 4300 or so, so this means that 1 out of every 2 employees will be looking for a new job. This all due to the market, and funding. One of the main funding sources for our company is Lucent. Which is a fairly huge operation, and is even more disturbing to hear that they seem to be going under as well." Given the recent bad news in the DSL market, is it likely that the market slowdown will create delays in broadband Internet services offered to home users, and how will the ISP market look after all of the economic turbulence has ceased?

"My main concern, and question seems to be what is going on. Yesterday there was a story about DSL companies (large and small) being hit, and hit hard. Going under with little to no notice. Now our parent company, and even we are being hit as well. We do offer DSL, and its through Covad, which was said to be dying off in yesterdays article. Though, even still, that isnt the cause.

I guess another main concern as well, is where is this going to end? What has happened in the Internet industry to cause such a decline in not only sales, but in jobs as well?

We got lucky, no one at our ISP is going to be cut, not now anyway. There's still a chance a couple weeks from now perhaps, but we were spared from this, but many...too many, were not."

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On The Future of ISPs, both Large and Small...

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  • by Anonymous Coward
    winstar? http://www.atnewyork.com/news/article/0,1471,8471_ 734621,00.html
  • Are you silly, How many companies with press releases on april 5th announving cuts of 2000 employees, of 4200. I'm fairly certain that I could trak that down even if I didn't know what the company did. I'm lazy, but really that is some silly way to do confidentiality, and a breech in spirit if not in fact
  • by Anonymous Coward
    Date: Tue, 20 Feb 2001 13:33:23 -0800 (PST)
    From: Larry Augustin
    Organization: VA Linux Systems, Inc.
    To: All Employees


    I'd like to thank everyone for their patience while we've gone through
    our planning process.

    As you've probably heard by now we will cut our operating expenses by
    at least $5M per quarter going forward. We need to do that to stay viable
    as a business during the economic slowdown. It's very disappointing
    to have to do this, but some very large companies (Dell, HP, and GE
    for example) have had to do this as well. We are not alone.

    Economic growth has slowed for the economy in general and for us
    specifically. We must reset our plans to get the company back on
    track towards profitability, and we must reach profitability at lower
    revenue levels.

    In order to cut that much spending, we need to reduce headcount by
    25%. We constantly hear that everyone is overworked and we are trying
    to do too much. The only way to reduce headcount and not be more
    overworked is to focus on what is important and drop what is not. At
    the same time we must improve customer focus and accountability.

    We have identified three strategic areas where we will focus, and cut
    investment in other areas. Those areas are Storage (NAS), SourceForge
    OnSite (SFOS), and Web server solutions. We will be increasing
    headcount in those three areas significantly, and cutting headcount in
    other areas as a result.

    We are also making some significant organizational changes to help us
    achieve success in those three areas. First, I am pleased to announce
    the promotion of Ali Jenab to President & COO. Ali will focus his
    attention on operational success within the company, while I will
    focus on strategic direction and customers. I have the utmost
    confidence in Ali's ability to manage the operations of the business.
    Reporting to Ali will be these people in each of the major functional
    areas:

    SVP Marketing - John Hall will move to the role of SVP Marketing. All
    marketing functions within the company, including corporate marketing,
    product marketing, and community marketing will report to John. John
    has complete control of all marketing functions and control of the
    marketing budget. I'm confident in John's ability to lead the
    company's product vision and positioning from this role.

    SVP OSDN - Richard French will continue in the role of SVP OSDN that
    he took over from John just a few weeks ago. Richard has a goal of
    maximizing the amount of leverage we get in software engineering by
    utilizing the Open Source community on OSDN. Richard's background in
    developing Enterprise software at Oracle will be a huge benefit to us
    in this role.

    VP Quality, Service, & Engineering - As announced earlier, Allen Ibara
    will assume responsibility for all quality, customer care, and
    hardware engineering functions. Allen has proven his skills over the
    past two quarters with a significant improvement in quality. Allen
    also has extensive experience running mission critical support
    services in his previous jobs. Bringing Allen's strong management
    skills and devotion to customer quality to a broader role will help us
    in engineering management.

    Also reporting directly to Ali will be these senior managers in their
    existing roles:

    SVP Sales - Bob Russo

    VP Professional Services - Kyle Spencer

    VP Manufacturing - Daniel Shore

    VP Human Resources - McKinley Littlejohn

    Finally, Todd Schull remains as CFO reporting to me.

    In addition to the structural changes in senior management, we have
    instituted a mechanism for creating accountability in the company for
    our key areas of focus. We have created top level P&Ls for our
    important lines of business, and assigned responsibility for those
    P&Ls to product line managers. Further, we are in the process of
    identifying team leads for each of the major functional areas
    (engineering, marketing, sales, support, and operations) within each
    of those lines of business.

    Over the course of the next few weeks, the product line managers will
    finish building their teams and report the team leads, goals, and
    business plan to the company. Ultimately every employee will have a
    one-page summary for each of these lines of business so we all know
    who is responsible for that business as a whole and for the functions
    within that business.

    First, the areas of key investment for us:

    SourceForge OnSite
    Headcount: 31
    Product Line Manager: Adam Frey

    NAS
    Headcount: 30
    Product Line Manager: Cheryl Sindelar

    Web Server Solutions
    Headcount: 9
    Product Line Manager: Jay McKinsey

    Our change of focus here is apparent from the resources we have
    devoted to each of these businesses. We have moved away from working
    on a variety of different products into focusing on these 3 areas.

    In addition to those 3 key areas, we have structured the company into
    6 other lines of business with P&Ls and definitions of clear
    responsibility. These areas are important to our success:

    Linux Servers
    Headcount: 108
    Product Line Manager: TBD

    Open Source Infrastructure Solutions
    Headcount: 23
    Product Line Manager: Marty Larsen

    Contract Engineering
    Headcount: 13
    Product Line Manager: Marty Larsen

    OSDN Online
    Headcount: 50
    Product Line Manager: Jeff Bates

    OSDN Events
    Headcount: 5
    Product Line Manager: Mark Stone

    OSDN ECommerce
    Headcount: 12
    Product Line Manager: Doug Schatz

    As we look at the business, there are a number of areas that we have
    not funded. We had to make some difficult decisions about what
    businesses we were in, and what businesses we were not in. We
    selected the top three businesses and assigned to them whatever
    resources they needed to be successful. With the remaining
    businesses, we chose those that were least defocusing, best leveraged
    our Linux and Open Source expertise, best leveraged OSDN, aligned with
    common target customers, and provided us the most differentiation in
    the market.

    We have a tremendous opportunity in the businesses we have chosen to
    target. We also have a tremendous opportunity for other products and
    businesses that we have chosen not to target. Before we build those
    new businesses, we must make these existing businesses work. We must
    focus all of our energy behind these lines of business. Once they are
    successful, we can turn our attention elsewhere to new ideas.

    We are the leading company in Open Source. Deutsche Banc Alex Brown
    expects corporate IT departments to spend $75 Billion dollars by 2004
    on Open Source. We can be the leading company providing those IT
    departments Open Source solutions. We have $126 million dollars in
    the bank to do it. But we must execute. We believe that the changes
    we are making today and over the rest of the quarter will put us in a
    position to execute.

    Thanks,

    Larry

  • I'm with Easystreet [easystreet.com] now. With the fall of Teleport to Earthlink and Pacifier and Transport Logic to whoever it was that bought those two, it seems Easystreet is the last of the "high profile" ISP's that Portland had.

    We originally went to Easystreet for colo facilities when our prior colo place went under. They were pretty cool about it, we basically called them up within an hour of hearing we needed to evacuate our servers, and they gave us rackspace and IPs by the end of the day. Pretty good rush work. So, when it came time to get DSL service, it made sense to use them, since we already had a rapport with our account rep.

    I agree about Hevanet. They're one of the nice comfortable sized local ISPs that we used to have a large number of. It's nice to see there are still some around. I'd say stick with them as long as they can serve you.
  • Nono, DSL is "always on". Same as cable modems. The connection spin-up only happens when the line itself loses sight of the other end, either because one of the two ends went down, or because some point in the line (Verizon) was taken down.

    The delay is just a matter of time it takes for the two devices to exchange handshakes, establish the connection, etc.
  • Upon looking it up, Pacifier and NWLink went to US.Net, which then went to MDM.net. Transport Logic went to FirstWorld, which then changed its name to Verado.
  • They seem to change the names of the service plans on a regular basis. When we signed up, it was the "Bronze Plus" plan, which is 768/128. That was when GTE was still GTE. I'm in Tualatin, so USWestNowQwest was never an option, no.

    As for the line, it's just a bridge, no PPPoE or anything fancy. It can take around 10-30 seconds for the bridge to hook up with the ISP, but I cope. We also have a dialup account with the service to fall back on if Verizon craps out for an extended period of time.

    Most of my DSL-using coworkers are North Portland residents or eastsiders, so they're all stuck with Qwest, but they're fairly content with their service.
  • Welcome to 2001. Actually, I'm suprised it has taken this long for the small local ISPs to slip under. I was imagining back in '97 that the nationals would kill the local ISPs completely within a few years with dial-up service. I could never imagine DSL and cable catching on like it did when it was barely being offered out of a few pops in the affluent tech-heavy areas like San Jose. Oh well. Goodbye Mr. and Mrs. Small ISP. We knew you well. No more calling up and talking to the owner. :-)
  • Until Earthlink swallows Corecomm and discontinues all the perks. ;-) Then when it all comes down to it several years down the road you'll see two fat behemoths meet on the field of battle. AT&T-Earthlink-@Home vs. AOL-Worldcom. These two fat sumo wrestling conglomerates will rush at each other and merge into.. guess: AT&T!!! Woohoo!! 1983 all over again baby. Man, Congress really had a GREAT idea when they passed that telecommunications act in 1996. I mean hell, having one big monopoly serving all our cable and telecommunications needs makes much more sense than having to worry about choosing from all those different rate plans and offers we had in the late 90's. This way you just call up 1-800-ATT-1984 and order all your services you could ever need. Thanks a bunch.
  • I wonder if the mysterious "parent company" is NetBeam - a national wireless provider funded by Lucent. Hmmmm.
  • Thank goodness for web chat feature with @Home,

    I don't think I'd be able to talk that much on the phone using voice.

    It took a battle similar to court room to get my static IP address back. Yes, I did it! No, I didn't pay a cent for it.

    How? I quoted every policy I could find. I was extremely persistent (while being polite), and exploited every possible policy loophole I could find on their websites. I was also ready to discuss the features of DOCSIS (cable modem standard) and DHCP (you know what it is). I that didn't help, I could quote directly from the DHCP RFC written @HOME's own R. Troll discussing the scenario I wanted to implement.

    Those interested in logs, all 30K of them, can e-mail me at the address associated with this posting.

    They sent me a letter by mail, and then made it extremely difficult to follow through on it. I don't think the support supervisor will forget my name any time soon :-)

    I am about to try to get my old shell account back tomorrow with another ISP that was consumed by Verio. I want my shell11.ba account back! I still have access to shell17.ba, so I know it's up. Wish me luck, and lots of it, because Verio is hell to deal with and I know a lot of their reps by name.

    Fight back, get your old account features back! It is possible, you just need to spend a lot of time on it.
    --
    Leonid S. Knyshov
  • It seems the computer industry in general (and in htis case, ISPs specificially) have not thought the future through. Or they have, and don't care, at the expense of their employees.

    A couple of years ago, there was a huge boom. Computers were flying off the shelves like nothing else in the world. It was, possibly, the best thing to happen to the economy in a long time. And to compensate, companies started hiring more people and making more computers. They had to, to keep up.

    Then something happened. Everyone had a computer. The average person will not want to buy another computer until there's a damn good reason, even if their current one is slow and way behind the times. It's kinda like TV--sure you could get the next big thing, but if what you have suits you just fine (and obviously it does, 'cause they've been using it for so long) then why pay so much for a slightly bigger one?

    So computer sales dropped like a rock, and these companies find themselves with too many payrolls to support. They have to let people go.

    It's similar with ISPs. They see huge grown, they probably undersell their bandwidth to their customers ('cause the money just keeps coming in) but at some point everyone's gonna have broadband, and then what? At least with ISPs they get money monthly, but if they have too much bandwidth coming in or too many people on staff, it just won't work.

    Microsoft used to make all it's money on bundleware. They got smart, real fast. You'll notice that once the computer economy started slowing, they started talking about subscription based software. Unfortunately, in order for a computer company to survive, this is how it's going to have to be--that is, until the next generation of hardware comes out that that the next generation of software requires in order to run, forcing everyone to upgrade again..
  • In this stumbling global economy, I can see the distributed computing model used more and more to provide cheap or free internet access. Juno [juno.com] and the SETI@home [seti-inst.edu] project for example, send raw data to it's volunteers home PC's to process, then later retrieves the results.
    Pennypinchers may soon have to swap cpu cycles while they sleep if they want "free" internet access - not such a steep price IMO.

    ISP's have to do something to offset costs, even sneaky ones like Juno.
  • I'll have to add in as well that a DSL installation is way more involved than dialtone - with a normal phone line they can just test your pairs out at the box and pretty much know things will work (since your wiring is usually your problem).

    But with DSL, your wiring becomes part of thier problem and they have to have to make sure it will work with your computer as well! I've had two DSL installations now and one cable modem, and each time it's taken a few hours for some guy (multiple guys in the case of the cable modem) to finish the job with me as a VERY accomidating customer. Run a cable from my bedroom into my study to get it working? Not an issue. Need to use the second pair of wires as the first pair offers lousy signal strength? Switch 'em over, I'll re-wire the jacks later!

    Not to mention that here in Denver, Qwest advertises DSL pretty heavily. I think one of the reasons they didn't advertise it much here for a while and might not in your area is lack of qualified personaell to take care of a flood of orders. I think after about ten years or so when a lot of homes have hooked up DSL lines already and companies have a map of what homes are ready, then DSL installations will be a little more routine.
  • I've been thinking about providing ISP services to the folks in the apartments around me. Anybody ever hear of this? I've got about 30 families within easy cabling distance that I could resell my cable bandwidth to. Hmmmm...

  • These guys need to learn a little something from an ISP in one of the cities where I work.

    They are a local ISP in a moderate sized (250,000) market. Ask anyone around who their ISP is and chances are it's them. They have excellent tech support and an average monthly cost. They get a lot of free exposure for participating in (often non-computer related) community and charity events along with their paid television and billboard spots. They always have a booth set up at the computer user group meetings and home shows. They have free tech days where you can come in and they will teach anything that a newbie would want to know. They give away t-shirts at sporting events and the such.

    Unless they are made an offer that they can't refuse by one of the really big guys, I don't see them going away anytime soon.

  • We use wireless here. It's an amazing technology and as with anything new still has a few growing pains.

    We're doing things with it that would blow your mind. I'd give details but my boss would probably hurt me. :)
  • Just wait and see. The next wave of connectivity will revolve around wireless. Once you are able to connect close to T1 speeds anywhere in your town with fairly cheap equipment, we'll have another choice. The mom and pop type places will arise once again providing service to your house and portable devices. Then the larger companies will start buying them up to form nation wide networks that can compete with other large companies that are doing the same. Soon you will have your net account every where you go, but you'll still have to deal with the large companies trying to keep you under control so they aren't blamed for some l33t3 h4x0r's actions.
  • I've got a DS-1 local loop to our cage at Exodus, so I'm in no hurry to migrate. ;-) I work from home, and do about 6GB /month data transfer. A modem doesn't cut it in the big leagues. Even 128k BRI seems slow.

    Most rank and file folks don't care about subnets, and being able to run daemons. They just want to download porn and games at a respectable rate.

    Who can blame them? Cable isn't for commercial subscribers. I'd never use a cable modem again, but I don't have to...

    Dave
  • This was on the minds of most of the small ISPs at ISPCON in Baltimore last week.

    It looks like this....

    For dialup, it's AOL, Earthlink and MSN. In all except the more remote/ rural locations, the little guy is going away, if he isn't already.

    In terms of broadband, the cable guys will own the consumer set, while the established ILECs will own the biz DSL set. With ATT@Work offering US$800/month for a full DS1, it's only a matter of time before most mid size businesses switch from DSL. The thinking is, the CLECs are done, it's only a matter of time.

    Dave
  • The future belongs to those who can tell machines how to manipulate data, or other machines, or people. Pretty soon everyone else will be flipping burgers.

    hehe... Nope, even the machines will be flipping the burgers... ;-)

    --

  • The ISP apocolypse is similar to what has happened in nearly every other industry: start off with thousands of little operations which compete fiercly for customers and market share. Eventually only a few will be left. After a while the service stops being differentiated from company to company and they compete on price. Once that happens, the company with the best economics - the most efficient - wins.

    True, true. This happes all the time, it just appears to be new to this person because they have no sense of history.

    One point on your comment. Machines don't save you from doing more labor, but they save your company from paying for more labor.

    This is not true. The companies are still paying for more labor, they're just paying the machines to do it. So, in effect the machines take over and save you, the employee, from the doing more labor.

    --

  • Yesterday a verison salesman called and informed me my slow downloads were over. I could purchase DSL for ~$60/month and get a 1 month free. I informed the sales person I already pay $24.95/month for TW's RoadRunner Service and have had it for 3 years now.

    This is why DSL is going down... cable has been around for a while and costs less.

  • It is just like everything else in the mass markets. Basically, MOST people prefer quantity over quality.

    My favorite (and, long standing) example is how VHS video wiped out the Beta format in the '80s, almost entirely due to the fact that the tapes were up to 6 hours versus a 4.5 hour maximum for Beta. Very few people really cared that Beta had MUCH better video quality, all they cared was that they could tape two football games or three movies without running out of tape.

    It is the same at restaurants, where they have to serve huge portions or "all you can eat" to keep the customers coming in numbers sufficient to remain profitable.

    Quality takes a back seat and most customers couldn't care less.
  • I believe you hit the nail on the head.

    I read an article a few weeks ago which said that the problem has occurred not just in high-tech, but also in industries as mundane as trucking. When the economy was exploding, all the truck lines saw all the potential revenue streams and over-invested in new (and very expensive) equipment to go after it. The trouble was, all of them were aiming for the same customer base. In the end, it blew up in their faces because there wasn't enough actual business to support all of the aggregated investments. Hence, lots of layoffs and bankruptcies.

    Trucking was just an example widespread practices across many types of businesses. The overheated economy is now spiraling in the other direction. It will be just as difficult to slow down the probably imminent recession as it was to try to rein in the overinvestment that caused the bubble to burst.
  • Concur. This is Winstar. News on this appeared in last Friday's New York Times [yahoo.com]. I currently use Winstar for my DSL-ISP. They acquired my local ISP last year (Northwest Nexus). I've already but in the order to switch my ISP to Qwest.
  • Err SWBell merged with Ameriblech.
  • Part of the problem is how the market evolved:

    On the one-hand, the CLEC/Local ISP evolved from local BBS owner/operators who added Internet 'gateways' in the late eighties and early nineties (a la the WELL, and all the old Mustang BBS's). They were packet switched, internally, but depended on the ILECs (CO-based circuit switched) for access and primarily concentrated on local services and/or underserved local markets. They extended services mainly by RAS. These were the early 'hobbyists.' MUDs are here today, but not much else unless the companies evolved into local ISP's. The point-of-presence these folks concentrated on spanned only inter-Area Local Exchanges.

    Then there were the early 'nationals' such as AOL and CompuServe who fell into one of two business models: Pure play online (AOL), or Loss-leader/Commodity Resale (CompuServe and Prodigy). They were packet switched on a much wider basis, but still depended on the TELCOs, in this case the long-distance carriers. These folks defined POPs in terms of markets and populations served.

    When the NSF 'privatized' the internet, these two fundamentally incompatible models (infrastrucures, business models, markets and customer bases served were different enough to be incompatible) attempted to merge at the push of an ignorant Wall Street, stuck in early Industrial-age 'economies of scale" models.

    The above, as well as inexperienced management, pushes into additional 'services' such as consulting, and the froth of the 'Internet craze,' left us where we are today.

    The ironic thing is that for the small, local ISP, in the right market, it is a license for geeks to print money. It can be Nirvana for a tech-crazed geek, in the right market, with realistic expectations. You just have to have some discipline and not be too greedy.

  • We sold our dial-up division to another regional company. No sooner had we finished all the tricky stuff that comes with transferring customers from one system (tech as well as billing) did our customers along with theirs receive an email message that the company we sold to had been merged.

    Needless to say we have had some of our old customers call us to complain they're being treated like a number and not a person. To bad there really isn't anything we can do about it.

    I still predict the bells will control DSL in the next 2 - 4 years. Maybe I should change my prediction to include DSL and dial-up in the next 2 - 4 years.

    I've said it once and I'll say it again - they will not let their monopoly go. They will just bide their time until everything is so mucked up we ask them to take it back over (think, energy crisis in Cali.)

    -----

  • Most (all?) cable contracts specifically state that you cannot resell the service in any capacity. Now, if you wanted to give the service away...
  • I think they are mostly Covad partners... some of the business ones are probably Rhythms though since they do business, not really consumer... it wouldn't make sense to list Northpoint ones any more now would it and those are the only three options other than the telcos?

    I think webhostingmenu.com [webhostingmenu.com] has some pretty good deals. I think the Thinkhost at $10/mn [webhostingmenu.com] is really good. I am a bit wary of the $5/mn of your-site.com [your-site.com] because that is so cheap.
  • Covad, Northpoint and Rhythms are not the providers, but rather the intermediaries that providers use. All providers must use them or else a telco like Verizon. Many providers were in big trouble when Northpoint went under as it was their intermediary. Covad and Rhythms are also getting into the provider business too though.
  • CNET has this article [cnet.com] on the death of Northpoint and the migration of customers to other places that provides some clarity for what I am talking about.
  • The company I work for manufactures hybrid fiber coax hardware for broadband network infrastructures. We layed off about 120 people not too long ago. Not only that, the rumors that flew before the layoff, well some were blown way out of proportion before it actually happened. All in all, it's going to happen, perhaps not on as big of a scale as some think.
  • You should just consider going with a premium provider for ISP service. They usually have less customers and have the margins to stay in business. Think about it!
  • I am pretty sure it isn't the switches wearing out, but the capicity between CO's. Keep in mind that a fast busy signal indicates a capacity failure, and they happen alot.

    Telcos do like DSL though, but they see it as an opertunity to take the whole pie, and are pursuing that goal at the expense of the custoemr
  • At this point there's no competition per se in Portland, where telcos are concerned. Some areas are covered by Qwest, others by Verizon, and that's the name of the game.

    In terms of coverage, there are huge swaths of town that can't get DSL or cable: most of Southeast, Hillsdale/Multnomah, Northeast close-in, and most of North Portland (go figure). If it was low rent ten-twelve years ago, or if it's low-rent now, you're probably outta luck. Nor do the telcos display interest in setting up new POP's... and Multnomah County is waaaaayyy behind the curve on cable because of the lawsuit that was filed here a few years ago.

    To the poster who was wondering who bought Pacifier and Transport, I can say that the next-biggest fish is Northwest Link. I haven't really bothered to find out who owns them (if anybody) 'cause my service has actually been pretty good.

  • R_V_Winkle says:
    If your ISP is purchased by EarthLink then I welcome you to sample the services. From the most reliable mail servers in the industry to full-service and online management for almost all account features. Award winning technical support and customer service are only the beginning.

    Yeah, there's also spam friendliness that will get you blocked from various networks all around the planet, thanks to ELN's habit of only replying to complaints of abuse from their network when their supposed anti-spam stance (from back when they took Sanford Wallace to court, mind you, quite a few years back) is threatened with exposure, or they're threatened with a listing on the RBL [mail-abuse.org] (auto-ignorebots don't count as replies).

    And, at least in Florida (where a good friend has first-hand experience), in the Tampa area, the solidity of their dialups is somewhat dubious itself, dropping connections at random intervals, and providing slow connect speeds even when the local copper is in good shape.

    That kind of crap is why I dumped my Mindspring address (well, that, and TigerDirect [tigerdirect.com] wouldn't stop spamming my address, after repeated bitchgrams to both TD and BellSouth, their upstream provider). Funding spammers and/or spam enablers is not something that sits well with me. (This post, ironically, coming from a town where UUNet dialups, like the one I'm using, are essentially the only game, if you want access to the rest of the world via a modem.)

  • Yet a DSL installation is not any more complicated than a standard phone installation!

    Oh how wrong you are. DSL is a royal pain in the butt to install. The line has to be qualified, the pair has to be rewired to a DSLAM in the C.O., the data service needs to be provisioned, sometimes in multiple pieces of equipment, and then there are the mystery lines, that just don't work when all of the work is finished. Trust me on this. Dial tone is waaayy easier.

  • You need to post to fuckedcompany.com. At least you'd get some points there, and you could warn others as well. At least give your fellow employees a head start on the job search, ya know?

    Peace,
    Amit
    ICQ 77863057
  • Ya know, we've all seen this happen over and over again. Innovation, boom, decline. It should be routine. But every time decline hits, it's something new. Funny really. I'm kinda glad things are slowing down. That means the real minds can sit down and concentrate on the technologies that are going to change the world in this decade. The internet is soooo 90's.

  • IMHO, this is another case of the tech bubble bursting as a result of too much supply over slow growth in demand. DSL customers are out there and want service, and these numbers will grow (unless new technology is better/faster/cheaper). Unfortunately, too many ISPs jumped on the bandwidth bandwagon to provide high speed access.

    Many thought they could purchase enough unbundled network elements (UNEs) to steal away competition from the big names. This practice, much like purchasing UNEs to undercut long distance competitors, has caused the demise of many small telecoms. The added technological complications of DSL has made it even more difficult for small competitors to turn a profit.

    However, I don't see the entire DSL supply chain imploding over this weed-out session.
  • > Make no bones about it, the Telcos are not going to give up their hold on DSL without a fight.

    Of course not! They have done the same thing with local telephone service. At least here in Texas, SWBell has been fighting tooth-and-nail to keep their monopoly on local POTS, yet they still want to offer out-of-state long distance service. They were finally forced to let in competition to their local service, but SWBell is not making it easy for them. THey will do the same with DSL.

  • > As a result, they do very little marketing of the service and devote minimal operational support. It's a deliberate effort to scuttle the technology.

    It's not that way here in Texas! SWBell heavily markets DSL all the time thru TV, radio, and snail-mail advertising. Have been doing so for almost a year now.

    When I visited Chicago last October, I saw one of the same ads (on TV) for DSL that I had seen here in Ft. Worth several months earlier. Seems that SWBell owns the RBOC in Chicago, too!

  • once upon a time, i ventured in to the world of tcp/ip from home via my trusty 14.4 modem and a local isp. that trusty local isp, infinet, serverd my internet connection needs very well, providing unlimited connection time & a solaris(tm) shell for $20/month.

    infinet was then bought by large regional provider by the name of voyager [voyager.net] in either early '99 or '00. as of late, the company has switched hands yet again, now owned by corecomm [core.com], which swallowed voyager whole.

    through the process, my email account never changed... the tech support got better, since it moved from a 8am-4pm long-distance number to a 24/7 toll-free number.... and my shell still works. not only that, but our homepage space has grown from 5mb to 20mb, and we can have up to three email accounts per subscription.

    the coolest thing, for me at least, is the ability to use my isp all over the state, because there is a local number all over ohio. whenever kent state's internet goes down (which happens much too frequently) i can plug my modem into the phone line and get on at 56k.

    i can understand the arguement against consolidation and such... but for me, the situation has been a winning one. gradually better, and more accessable tech support, more email accounts, more local numbers, more web space, et cetera.

  • DSL was supposed to be the be-all and end-all of consumer broadband. A couple of years into the hype, we have DSL still only available in major areas, with very poor performance for many users. What happened?

    The biggest problem, in my view, is that DSL is such a young technology (two years old or so, I believe). The DSL providers pile users onto shared lines*, pushing this relatively untested technology to the limits. The result is what I hear about every day from a lot of people I know who use DSL: a connection that's usually very unreliable.

    For instance, a member of my family signed up for DSL in his area a year ago. It was fantastic for the first few months, but the providers kept piling people on in that area, and what does he have now? Weekly outages of a day or more (one time nearly two weeks), virtually non-existent support, and wildly fluctuating download speeds. He's actually going back to dial-up 56k, because even though it crawls, at least it crawls with some reliability.

    I hear stories like this from my DSL-using friends more often than not. I know a grand total of probably two people that are truly pleased with their DSL service.

    Don't get me wrong -- when DSL is done right, it totally rocks. I'm envious of the performance gains a really good SDSL connection has over my cable modem. However, my cable goes out maybe once a month, if even that, and usually only for a few minutes. Compare this to the nightmare stories from a lot of DSL users. I'd rather have the sometimes lesser bandwidth than risk having a faster (but crappy) line.

    * Yes, despite the hype, many DSL setups are shared. Often times, three or four people will be put on one DSL line in a given area. So the "cable sucks because it's shared, so use DSL" argument doesn't always apply. :-)
  • I'm not sure that it's the solution, but my own reservations are more along the lines of economic viability and return on investment. I think something truly novel would have to part of the deal, as well. For instance, using the powerline network as the backbone of a statewide wireless network would be truly impressive! But this idea strays a bit too far off the topic, perhaps.

    Anyway, the concerns you raised aren't really issues, as the transmission of data over powerlines would be completely seperate from the transmission of power, just as your phone service isn't compromised by your DSL line.

  • This point is interesting, considering I talk to customers EVERYDAY who are switching FROM free services and coming to use our paid service. It's called reliability, good tech support, and getting what you pay for. Not to mention that so many free services are going under left and right. In our area alone I believe they are down to two free providers that have local numbers. Quite a drop from a year ago. Almost every customer we lost to a free service has come back within 6 months.
  • Look at Earthlink; their slogan is, "We're 10% better than AOL." For most people that's enough. Sure, people reading this comment probably want shell access on a *nix box for their $20/month, but Joe Sixpack just wants something that's easy to use (i.e. limited in options and functionality so it doesn't confuse him).

    EarthLink's campaign to bail out the fragmented ISP market and provide a viable alternative to AOL/Time Warner is something that should be applauded. To begin with there are not many if any other players looking in this direction for new business opportunities. If not for ELNK's interest we would be reading alot more about situations like the recent Northpoint/Verio fiasco that left tens of thousands of people without internet access and established email addresses.

    Sure there are always going to be those people who would have preferred anything but the inevitable, what can you do? Providing quality service with skilled technical support and customer service is not possible at a profitable level in today's market until you begin to divide your costs into the revenue that only comes from millions of subscribers.

    The 'mom and pop' scenario functioned when a real income was to be had from advertising and investors were excited about the possibilities. That is no longer a reality and one should begin to consider the long term viability of their ISP before commiting to them.

    If your ISP is purchased by EarthLink then I welcome you to sample the services. From the most reliable mail servers in the industry to full-service and online management for almost all account features. Award winning technical support and customer service are only the beginning.

    By the way port 25 blocking is necessary. If you stop and think about it, why should any network administrator be asked to pay for your outbound mail to some spam server is malaysia or even worse those people who would log in to EarthLink's smtp server from another network. Nobody here likes recieving spam and I think we all know the amount of traffic and expense that can occur when one doesn't control the mail that is generated from their network. If you really are using your own mail server for business purposes then purchase a dedicated line and use it how you see fit.

    By the way, EarthLink's slogan is best surmised by their Core Values and Beliefs. [earthlink.net] I do not know where you got the 10% better than AOL but its not accurate.

    R_V_Winkle
  • the comapany was winstar....I used to work for a isp that they bought out and I still talk to the managers there daily
  • It's not possible to make a profit as an ISP, especially when dealing with DSL and Cable. Most of the fee for DSL goes to the telco, and what remains is not enough to pay for operating expenses (power, tech support, cust service, software, maintenance of the servers, megapops, and administration), much less for marketing. It is also very difficult to compete with the telco for DSL service as they provide all the provisioning, and give preferential treatment to their own customers (at one point there was a six month wait for provisioning through an isp, and only a week through the telco). ISPs make all their money from domain services, and selling advertising, very similar to magazine publishing, they don't make money off the subscribers, but the number of subscribers figures into the value of their advertising (your going to be more likely to advertise with an ISP that has 5 million subscribers, than one that has 50 thousand subscribers). With the collapse of the IT market, (IT will recover, but market confidence never will, companies will no longer be able to survive on blue sky) ISPs that are not able to find a way to show a profit are going to disappear. In the eventual shake out, we will be left with only the mega ISPs, the telcos, and the cable co.s (though I don't think cable will ever reach the market penetration to survive) and cost of service will go back up to a point when it is self maintaining.
  • Actually..

    Mindspring bought Sprynet and Netcom before the merger with Earthlink ever happened. I worked at Mindspring during both acquisitions. :)

    the unbeliever
    aim:dasubergeek99
    yahoo!:blackrose91
    ICQ:1741281

  • I've been told by a Bell Canada manager in their ISP division (promoting xDSL services) that the break even payback on DSL doesn't happen for 7 years. Plant upgrades and help support services are very costly. So, unless you're in it for the really long haul, the chances of making money fast are very small.

  • but to quote Radiohead "you do it to yourself, you do. And that's what really hurts..."

    I really love it when someone quotes some band lyrics, like that.

    I've been paying the same $19.95 a month for 4 years for Concentric dialup service, which is now XO. About 2 years ago they shut down shell accounts, rationale: It was part of our Y2K plan to decommission that service, since the hardware crashed anyway, we didn't feel like pulling them back up for a few months. The bastards.

    If you haven't hear the "Charles Gaines, President of Megatelco" ads, consider yourself fortunate, as they are insulting to the intelligence of everyone.

    The fact is customer service suffers from these things, other than decreasing revenue from reduced rates:

    Overselling, too many customers, too little time to ramp up support

    Lack of attention to detail, like putting a clear pointer to customer service on the home page, rather than buried out of site.

    Boiler-room atmosphere customer service: get the guy off the line as fast as possible, even without a solution to the problem.

    Extreme dilution of stock, through options, need to pay out a dividend and obscene executive bonuses.

    The customer isn't as dumb as Radiohead would make him or her out to be. Each side of the scale has it's weight and we're heading toward balance. Odds favor those who went into the ISP business intellegently and provide good service. It's really tough to leave a company which provides superior service, unless the customer is suffering some hardship.

    Where I once worked, years ago, we switched from AT&T to MCI to save some money, the crossover was a nightmare and service was horrible. Within weeks we were back at AT&T. I can't speak for either company now, but where the real bread and butter is is where you'll find if a company can provide the service. If your employer gets good service and that vendor provides DSL/ISDN, etc. use that inside information. If the vendor sucks, they're one less to look at.

    --

  • it is the large national parent company that had 4300 employees (and laid off 2000). The local company that was bought didn't lose any employees.
  • I've had 2 DSL providers die on me due to lack of funding in about 1 year. You better not be talking about my current ISP, or I'm going to have to kill somebody.
  • The ISP to which I used to subscribe got swallowed whole by a giant ISP conglomerate -- with no warning, no notice, no nothing. Just one day, I couldn't log in anymore, then the helpful phone robot told me the line had been disconnected, and when I physically went to their location, they were gone, lock, stock, and barrel (guncotton, too). Three days later, my service inexplicably came back, along with a note saying that my former ISP was now a subsidiary of UnnamedGiantConglom. This seems to be happening a lot where I live.

    It particularly made me upset because I'd carefully shopped for a small, local, geek-owned-and-operated service, and now I have a large, unfriendly service staffed by people who seem to know less about their service than I do (which is pretty scary)... I don't even dare ask these folks any Linux configuration questions, whereas previously, I'm sure Rhys in tech support (with the cool voice) or one of the other guys could have helped me out.

    Wonder what happened to those gentlefolk... Sigh...

    So there's more than one way for an ISP to become a flayed feline.

  • You're right. There's nothing consumers hate more than low prices.

    Actually, there's nothing consumers hate more than an upfront charge. Forcing people to drop $200 for a DSL modem isn't going to get you very far in a world with $.01 cell phones. Instead, people will take "Free" even if it means shit like DSL Winmodems and USB ethernet connectors.
  • ...redirects to the goatsex link, should you notice that as a destination when you hover a link. FYI.
  • Crappy about the recent dsl isp's cracks :/. Maybe it just hasnt reached Denmark yet, but ISP's are happily expanding here. Especially those who offers xDSL acces, which is about 3 or 4 larger ISP's.

    What's the situation in other countries?

    Maybe it helps that about 60% of the population can get dsl in Denmark? Also they are aiming for making dsl possible for about 90-95% of the population in a couple of years.
  • Ehh, I remember in the early 90's where it was reasonable to consider buying a Sparc and a bunch of modems and setting up your own ISP. A few years later, that wasn't feasible as "giant" ISP's were able to undercut costs.

    These "giant" ISP's were far smaller than a corporation with 4300 employees! Now *that* is the tiny corporation being swallowed!

    All industries go through this. A hundred years ago, there were as many car companies as there were cities with a population over 10,000.

    Consolidation, with the accompanying layoffs, reduces costs overall for the consumer because, heck, there go 2000 paychecks a month that were unneeded. Rough for those cut (sort of, it is the computer industry after all) but costs are lowered.

  • Does everyone forget the phone companies want to have their cake and eat it too?

    A couple of years ago, at the same time, they were whining to the government that they should be able to charge extra money for long-hour local calls (ISP calls) because it was tying up too much of their system. Meanwhile, on the radio, they were advertising free installation of a second phone line for your computer modem!

    Clueless is as clueless does.

  • > While being totally crappy to it's core, it
    > offered significant productivity increases
    > (meaning, companies could fire a bunch of
    > secretaries and force middle managers to type
    > their own memos),

    Yes, firing a secretary from a manager and his group of engineers made great economic sense, as people earning a lot more than the secretary now type their own stuff.

    Let's have the engineers sweep their own cubes while we're at it, so we can save money by firing the cleaning lady.

  • It kind of amuses me that most people here don't seem to get their news from any other source...
    here's the link to the press release...
    Date: Thu, 5 Apr 2001 16:30:26 -0500 (CDT)
    *** Winstar cuts 2,000 workers
    NEW YORK (AP) - Winstar Communications Inc. announced the immediate layoffs of 2,000 employees, or 44% of its total work force, just hours after potential suitor Qwest Communications said it has no plans to acquire or invest in Winstar. Winstar also said it was halting expansion of its domestic and international network for the rest of this year, to focus on building business within its existing broadband infrastructure. That existing network consists of 5,400 buildings with a market of about 150,000 businesses. But Winstar said its announced cuts were "absolutely not" the result of Qwest's statement. "The release we put out today had nothing to do with their (Qwest's) announcement this morning," Winstar spokesman Kevin Cavanaugh said. Cavanaugh would not comment on whether Winstar has been in talks with Qwest, saying to do so would be speculative. Full article at: http://www.infobeat.com/fullArticle?article=406645 740
  • 10 to 30 secs? Yikes. I presume that you have to reconnect every time your box has been network-idle for a certain period of time? If so, how often is that? And, what's to stop you from setting up an auto-ping script to keep you "online" all the time?

    Are there any options to avoid this kind of delay, either through using a different plan at Easystreet or through using a different ISP in Portland?

    Alex Bischoff
    ---

  • So, with Easystreet [easystreet.com], which of their many individual pricing plans [easystreet.com] or enthusiast pricing plans [easystreet.com] do you use? And, were you able to choose between the Verizon and Qwest options there, or was that determined by your location? Also, it's not PPPoE (PPP over Ethernet), right I've heard bad thing about PPPoE -- primarily its significant "spin up" time.. As I'm thinking about moving to the Portland area, so this is of quite an interest to me.

    Alex Bischoff
    ---
  • Support for my argument can be found in this ZDNet article [zdnet.com]
  • > The biggest problems are late payers and line hogs. We solved this problems with a little program that would look to see if
    > the modems were filling up and/or if people had multiple connections who weren't supposed to. If the modems did fill up,
    > it'd clear connections by bumping off people who owed us more than 2.5 months [which was basically to rule out
    > prorated amounts + setup fee]. If it didn't get enough from that, it would bump off people who had been on more than 6hrs
    > straight.
    >
    > We'd have people calling us at 7pm, begging us come down to the office to drop off their payment as they just got
    > dumped 4 times in a row, only to check their mail to find the 'this wouldn't have happened if you paid your bill' message.

    [F/X: this reader chuckling]

    My long-term ISP, whom I've been with since late 1992, has always enforced a pay-in-advance policy. You forget to pay a bill, & he disables your account. One reason he can afford to keep in business. (The other is that he does all of his support via email -- that keeps the bottom 10% who waste 90% of his time away.)

    If I ran an ISP, there would be no way in hell I'd let someone ride for free for two & ahalf months. Maybe a month if they positively swore each time they called the check was in the mail. Unfortunately, I know of at least one ISP who took a year to close accounts. (I know this because I was given use of this account until the ISP closed it -- & the original owner told them to close the account.)

    The only reason people got away with this kind of crap was that ISPs were trying to build marketshare. Either that, or the owners truly were bad businessmen.

    Geoff
  • What I'm hoping can keep the local ISP's on their feet is some of the new wireless stuff that's coming out. Not so much because it's cool (even though it is) but because it enables the Mom & Pop ISP to do business on their own terms again.

    The big problem with DSL is that pesky middleman that has a vested interest in seeing you fail. If wireless can be made to work then they are out of the picture and we have a vialble alternative again.

    Let's keep our fingers crossed that the product can live up to it's hype.

  • The ISP market is a very amusing one indeed. You've got dozens of companies in the same area offering the same service for the same price and sometimes all using the same dial-ups. Of course there's going to be a large shake out soon in the market. Only the companies offering the best services for the lowest price will survive. If you're an ISP that offers some personal web space and an email address you better take a look at the big boys like MSN and AOL. AOL customers get a pretty broad range of services for a decent price. They don't rely on Yahoo! or someone else to provide content for them like so many other ISPs do now. This is how a free market works. It sucks for the guy who has been overworked at some little ISP who's about to lose his job but thats how the cookie gets jumped on and obliterated.
  • The URL you gave for "port 25 blocking" was invalid, and a search of www.earthlink.net didn't turn up any references.

    Caution: Now approaching the (technological) singularity.
  • It used to be that they could call us and we'd setup everything (including handling work with the telco),

    That's how it still is, at least with my ISP. I've had Telocity for about a year now and I'm in Michigan, so my telco is Ameritech. Just recently a friend of mine signed through the same service and his installation went the same way.

    I don't know about other areas of the country, and IANAL, but it does sound like you've got yourself a nice big lawsuit given enough money to fight them. IMHO, there is definitely some breaking of the antitrust laws here...big time.

  • There's a catch to those low prices. It's called customer service, or specifically, lack thereof.

    As the former Baby Bells have gotten larger, customer service has gone down the toilet. Just ask *any* long-time Ameritech customer. :)

  • By 'market' I assume you mean the stock market? (might be a dangerous assumption).

    People are losing their jobs, not because the stock market is failing, or because their company is losing funding, but because *their company is not profitable, and hence, not sustainable*.
  • If this was posted by someone I know, please drop me an email. It sounds real familiar.

    In fact, if this isn't someone I know, the story is even more scary, cause it means the same exact thing is happening to lots of once-traditional, once-local ISPs.

    --

  • PPPoE works fine (if the DSL provider and ISP have their sh*t together). I use PPPoE through my home (non-split) PacBell phone line via Covad bridged to Earthlink under both Linux (roaring-penguin is in the Mandrake 7.2 release, as is ip-chains firewall) and OS/2 (using Injoy Firewall, which includes PPPoE support): free modem, $50/mo.

    My PPPoE DSL is pretty reliable (and fast, over 1250 Mb/s down). The only delay is at the first connection - turn on the DSL modem, wait for it to sync, then it's up. (That's a common troubleshooting procedure, too.) After that, DSL is always-on, 7x24, never drops unless PacBell (rare), Covad (also rare), or Earthlink (sometimes) screws up. I think the longest my DSL line has been down was about a half day one time when Covad was mucking around (and I gave their technical support voice tapes some colorful manager listening material that time, you can bet).

    I'm in SoCal, but grew up in Portland. Is broadband access really as grim there now as you seem to suggest?
  • "Example 2: If I call the phone company and order phone service, I'll have a service call the next day, but if I order DSL, it's going to take a few weeks. Yet a DSL installation is not any more complicated than a standard phone installation!"

    Not true. DSL takes time for the telco to provision. They have to circuit-map your line from their CO to your location, check for A/D-D/A converters in the link (these kill DSL), check the transmission footage, perhaps test your line for impedance, bandwidth, noise/static, phase-jitter at DSL frequencies, etc., install CO band-pass filtering on your line, allocate a DSL header, and document all this both internally and to your DSL provider. No wonder it takes a few weeks from ordering to get the provisioning done.

    Any extra delays for third-party DSL providers are likely due to internal review, tariff checking, stamping regulatory forms, mailing time, and the DSL provider's own delays in handling telco provisioning paperwork.


  • Beats me as to who got gobbled up, but I'll bet dollars to donuts that the buyer was EarthLink. They have bought ISPs by the dozen ever since the merger with MindSpring. Look at the number of ISPs they have now, under their banner..

    Sprynet
    Netcom
    Sprint
    OneMain
    JPS


    You can add Primenet (the dialup part of Global Crossing/Frontiernet/Globalcenter) which announced that they were handing over their customers to UrkStink last month.

    Interestingly enough, an informal poll suggests that a sizable portion of the customer base hasn't received any notice at all; this may account for less than 100% fleeing ahead of the disaster.
  • I still own stock in a 'small' ISP [under 600 lines, DSL and dedicated service... I think they were at 46 lines when I started working there full time]. ISPs can be made profitable, but it definately takes some work.

    The biggest problems are late payers and line hogs. We solved this problems with a little program that would look to see if the modems were filling up and/or if people had multiple connections who weren't supposed to. If the modems did fill up, it'd clear connections by bumping off people who owed us more than 2.5 months [which was basically to rule out prorated amounts + setup fee]. If it didn't get enough from that, it would bump off people who had been on more than 6hrs straight.

    We'd have people calling us at 7pm, begging us come down to the office to drop off their payment as they just got dumped 4 times in a row, only to check their mail to find the 'this wouldn't have happened if you paid your bill' message.

    As for CLECs, they're hurting because of the ruling that the ILECs don't have to pay thm reciprocal charges for termination to ISPs, because the internet qualifies as long distance. So the ISPs can't get the dirt cheap PRIs anymore. [But well, like anything, that's gross generalization, as prices fluctuate wildly by market]

    The problem with most of the ISPs is that the people running them may have had good technical sense, but didn't have the business sense. Sure, you could get a loan and buy lots of equiptment, but how quickly can you get a return on the investment? You can have great sales, and undercut everyone's prices, but again, you have ROI issues. Your best bet is to stay small, cater to the users, make sure that your service is better than everyone else's in the area, and just wait for word of mouth. Your first users will be people who were kicked off of their other ISPs for being line hogs, etc, but with some incentives [refer us to (x) friends, get a month free!] you can get them to pull in their friends.

    It also rather helped us that we had USR racks, and so we didn't suffer from the 2 version of kFlex issues before v.90 was finalized, and all of our competitors were either running older modems [AOL] or Lucent/Rockwell modems. We also had enough outgoing bandwidth to handle a full PRI while some of the others were running a channelized T1 through a 56k frame circuit.

    If you play your cards right, and have good service, you can hit the point where people may leave you, but when they're done with the mandtory 3-6 months they had to sign with with the other guys, they're begging you to take 'em back.
  • to plug the company I work for...
    ispmenu.com [ispmenu.com] allows you to search and compare DSL and dialup providers available at your address. If your ISP is going down you can find a new one, at least until all of the ISP's have been gobbled up and Earthlink and Verizon merge or something.
  • Well basically whats going on is this: a buncha companies got venture capital on questionable business plans. When, suprise, suprise, those business plans didn't become profitable, those companies had to lay people off to try to make a profit. This move usually comes about the same time as a company attempts to "reinvent itself". Six months from now, it'll be out of business.

    See here [fuckedcompany.com] for numerous examples of this.

  • My post [slashdot.org] below seems to echo your experience; I'm also in Portland, and used Teleport (*sob*) until recently. Who's your ISP now? Why do you like them? I've signed up with Hevanet [hevanet.com], who are still small enough for real people to make customer-satisfaction decisions. They seem good in other respects too, but time will tell...

    question: is control controlled by its need to control?
    answer: yes
  • Perhaps my point wasn't entirely clear; I left out the implicit "human" in front of "labor." Let's try it again:
    Machines don't save you from doing more labor, but they save your company from paying for more
    human labor.
    Machines are almost always much cheaper to operate than people, so you're absolutely correct in saying that "the machines take over and save you, the employee, from the doing more labor." They also save you, the ex-employee, from collecting a paycheck for your ex-labor. This is what happened to those 2,000 employees who got axed - economies of scale and machine efficiency.

    This is the point of my previous post: the more things are automated (and at a national ISP, as much as possible is automated), the fewer people are needed to produce the same service. Also, the remaining people need more and deeper skills to manage the more complicated machines that replaced their ex-co-workers.

    The future belongs to those who can tell machines how to manipulate data, or other machines, or people. Pretty soon everyone else will be flipping burgers.

    question: is control controlled by its need to control?
    answer: yes
  • ...for fscked company [fuckedcompany.com].

    Make sure you add it! It's about the only really accurate record of the collapse of the IT industry.

    It looks like I'll be adding an entry myself in October...we're getting cutback from 30+ employees to 6.

    I'm "guaranteed" a slot, but I have to say that our little corner of the IT world has been GROSSLY MISMANAGED.

    if the truth ever comes out, this collapse has everything to do with COPORATE WELFARE SCAMS and nothing to do with the talented people at the bottom.

  • No more calling up and talking to the owner

    You just reminded me of something, circa late 1995 or early 1996. This was when Erols (now a subsidiary of RCN) still had that local ISP flavor.

    One night I had trouble with the news server. It wouldn't let me in. I had heard that CAIS provided the servers. Just for the heck of it, I sent e-mail to root@cais.com. I got an answer. One of their sysadmins politely informed me that Erols had just set up their own news servers. CAIS had locked out non-CAIS customers after that. Erol's hadn't told us, but I just took that in stride. After all, this was the internet. It wasn't like I needed it.

    Not long after that, I actually worked at Erol's, starting out in tech support. One of the groups of people we used to make fun of were daytraders who called us up screaming in our ears telling us "MY BUSINESS DEPENDS ON THE INTERNET!!!". The very idea of any business depending on the internet was ludicrous. Assuming it was true, they were foolish not to have a backup provider.

    After a while I got used to that idea. So did a lot of people. The entire economy has, in a very real sense, behaved just like that idiot daytrader. But, but, but... technology companies can't go down. "THE ECONOMY DEPENDS ON THE INTERNET".

    Well, guess what folks. The internet is just as flaky today as it was in 1995. Worse yet, there doesn't appear to be any "backup provider" for the kind of sizzling hot growth that the internet spurred throughout the 90s.

  • Quite frankly, I've always had the impression that the telephone companies would rather DSL hadn't come along at all. They would quite prefer that consumers would go back to 56k modems and businesses would invest in safe sensible (and expensive) T-1's. The service is offered to stall the growth of cable modems, which they see as a potential competitor for phone service. They don't like it though, as they have been forced to open up their lines to competing companies, which cable providers have not. As a result, they do very little marketing of the service and devote minimal operational support. It's a deliberate effort to scuttle the technology.

    Example 1: Every phone bill I recieve has an invitation to order a bevy of calling services, such as call forwarding, and voice mail. Yet the only invitations I recieve for DSL service are from service providers themselves (Even though the phone ocmpany does offer DSL service directly.)

    Example 2: If I call the phone company and order phone service, I'll have a service call the next day, but if I order DSL, it's going to take a few weeks. Yet a DSL installation is not any more complicated than a standard phone installation! They just don't care to devote any resources to it, since they don't own the whole pie.

    Ok, final point, is there a solution? I believe the answer is in new forms of competition. In California, for instance, my home state, I believe the state could crack open the market by buying the powerlines from the utilities and opening them up to private firms wishing to provide high speed internet access. Solutions will vary state to state, but ultimately competition is the answer. Without competition, the telcos will be content to strangle their competitors out of the business, with just enough foot in the door to hold the cable companies at bay.

  • I guess another main concern as well, is where is this going to end? What has happened in the Internet industry to cause such a decline in not only sales, but in jobs as well?

    There's nothing happening in the ISP industry that has not happened 1,000 times before: its the normal ecology of business. New sector opens up; barriers to entry are low; multiple entrepreneurs pitch in; boom of some size, followed by end of boom, culling of unfit companies, and major scale vertical and horizontal mergers. Think: tulips, East India trading; motor industry; yo-yos, hula-hoops, skateboards.

  • Beats me as to who got gobbled up, but I'll bet dollars to donuts that the buyer was EarthLink. They have bought ISPs by the dozen ever since the merger with MindSpring. Look at the number of ISPs they have now, under their banner..

    Sprynet
    Netcom
    Sprint
    OneMain
    JPS

    This is just a very small sample... EarthLink owns, last I checked, somewhere around 20 different ISPs... And they just keep eating.
  • The last big PC bust happened in the late 80s. Similar to today, new applications drove a huge number of purchases between 1980 and 1988, but by the end of that period the old standbys of word processors and spreadsheets faced a pretty saturated market, and no amount of sexy new hardware could change that. Compaines like IBM were still selling 8086 machines in 1990 that were no more powerful than original PC, while their pricey Microchannel equipment gathered dust in the stockroom.

    As a result lots of former big names sunk off of the radar. Others, like Apple, went extremely high end to chase profits.

    The only thing that ended this downward spiral, was Windows 3, I hate to admit. While being totally crappy to it's core, it offered significant productivity increases (meaning, companies could fire a bunch of secretaries and force middle managers to type their own memos), assuming you had the fairly decent hardware it took to run it. Those late era 8086 machines were obsolete within a year. In the quest to get all of this shit working decently, we found ourselves in our current "3 Year Upgrade" cycle. As Internet applications came about, the rip-n-replace cycle only accellerated.

    But, now it's been done. Nobody has any reasonable desktop apps which would convince widescale upgrades. All of the good ideas out of silicon valley lately are bandwidth-limited, and that's a fundemental problem that can't be solved by smart hardware/software people. Add in the big players (telcos, cablecos, big ISPs), and it will probably be a long time until we see the next big boom in the computing market.
  • Example 1: Every phone bill I recieve has an invitation to order a bevy of calling services, such as call forwarding, and voice mail. Yet the only invitations I recieve for DSL service are from service providers themselves (Even though the phone ocmpany does offer DSL service directly.)

    That's odd, Bellsouth advertises their FastAccess DSL service very heavily in every medium I can imagine. They even have space in the pre-movie slideshow at all the local theatres, as well as the usual billboards, prime-time TV, and print ads.

    Example 2: If I call the phone company and order phone service, I'll have a service call the next day, but if I order DSL, it's going to take a few weeks. Yet a DSL installation is not any more complicated than a standard phone installation! They just don't care to devote any resources to it, since they don't own the whole pie.

    Actually the impression I get is that a DSL installation does involve a bit more, especially in a new market; if you order phone service, odds are it will involve nothing more than tapping some commands on a Telco computer to establish your connection. If your installation is brand new they might have to send a lineman out to punch down the line from your house in the local distro box.

    With DSL, doesn't someone have to visit the CO to physically establish your connection? I am pretty sure we aren't all prewired to the DSL headers in the way we are to the standard telco equipment. Perhaps someone can enlighten us on this.

    I ordered the self-install kit, and it took about 2 weeks to arrive; but then it had been custom packed with my installation info, a process which might not be do-able until the DSL header installation is made. In any case I was online with DSL within a few hours of the arrival of the package. (Would have been quicker, but I am sharing the connection with multiple machines.)

    Bellsouth's service has been a tad impersonal but efficient -- rather like their phone service. Oddly, I have had the actual phone go out a couple of times while the DSL continued to work.

    I get the impression that they want my business very badly, probably to head off the invasion of the cable modems. They did a very clever thing in New Orleans; while Cox Cable was busily wiring up the highly populous parish of Jefferson, BellSouth did an end-run and wired up the more affluent and rapidly growing suburb of Mandeville, where the percentage of people capable of affording broadband is almost 100%. Now that cable modems are coming to Mandeville DSL is firmly entrenched and most folks are happy with the service. Meanwhile, Cox has a miserable service record in Jefferson, which BellSouth is now exploiting to compete with them there.

  • Everyone wants fast, cheap internet. However, the bigger you get,the larger your support staff(tech support, admins, field techs for cable/dsl providers, etc). And high speed data networks cost more than regular dial-ups anyways. That means more money needed. It's a vicious cycle.

    -Henry
  • Worked fine for me.

    http://help.earthlink.net/port25/ [earthlink.net]


    --
    The occasional poster formerly known as jihad23
  • Once upon a time, dialup actually gave you a shot at paying your rent. A PRI or two, a MAX for ISDN, 10x dial oversubscription, Sendmail + QPOP, Apache with Virtual Hosting run on a dual Pentium Pro with a T1 to whatevernet and you had a business that could make you a few $k a month. If you could swing the occasional business T1, hell you could pay a couple of college guys $10 an hour to answer your phones for ya.

    Then came broadband. DSL first, and it didn't look too awful. The local CLEC (Covad/Northpoint) would sell you a T1 to mux your customers on. You wouldn't make too terribly much margin but it was a little extra dough so whatever. But then the installs ... the two guys you hired to answer the phone ended up spending half their day on the phone with your CLEC. You noticed your support starts to slip and your customers are bleating for broadband, the same service which is starting to drag you down.

    Then the big trouble starts. The CLECs decide T1s aren't worth their weight in gold so they force you to buy a T3. That's big time $$$ monthly compared to what you're used to so you try to hold the fort with the T1 you've got. Fortunately you're under contract so they leave you alone. As for business ... sure, some dial customers are happy where they're at and/or can't get DSL at their houses so you try to focus on them. But broadband is catching on and the Free ISPs are starting to pop up. You're down a $k or two in monthly revenue.

    Now the LECs are in the DSL business. A T1 or T3 to them to resell DSL? Forget it ... you can only make $10 margin on an ADSL customer because the LEC is price gouging the industry looking to kill the CLECs and, therefore, you. So you cling to the CLEC and the T1 you started with but the contract's done now and they're tired of your righteous yelling ... you don't offer DSL anymore. Your customers are leaving dial in droves, the two guys who used to answer your phones have graduated and that ole dual Pentium Pro that runs your services needs upgrading. With all this beating on your mind, on the first sunny weekend in the spring, you spend your weekend piecing your webserver back from backups because a bunch of 13 year old IRC geeks have taken you down with the latest Trojan that you were a bit too slow to implement. You turn the lights off and decide to get a real job.

  • Hassles with the telecoms seems to be one of the major problems with the DSL types, both technologically and financially...and its in the telcos best interest for it to stay that way. The DSL types do most of the design work, most of the "public service" work, invest most of the money, then still fail to pay the bills and go under...

    And then the telcos can acquire the DSL services (that are already partly theirs anyways and they have all the technical know-how to manage, even if not the customer support), AND (more importantly) a set of customers already...

    When they consolidate 2 or 3 different DSLs using their own service, they become a DSL powerhouse with an income stream that's unstoppable...allowing them to increase the pressure on the remaining DSL types still "leasing" their services until they too are ripe for acquisition...

    bastards...

  • by legLess ( 127550 ) on Sunday April 08, 2001 @11:08AM (#307160) Journal
    "What has happened in the Internet industry to cause such a decline in not only sales, but in jobs as well?" Consolidation has happened, and it's going to keep happening. DSL and cable are putting mom-and-pop ISPs out of business left and right. For every cable sign-up, one person leave LocalISP Inc. forever. Each DSL signup makes it harder to run a cheap 56k modem-based operation. "...where is this going to end?" When there are a handful of huge national ISPs and a bunch of local, hacker-friendly "boutique" ISPs.

    It's ironic that, as promised 50 years and more ago, machines and computers really are labor-saving devices, just not in the way we hoped. Machines don't save you from doing more labor, but they save your company from paying for more labor. As more dataflow gets automated, and as hardware and software get easier to use, less human intervention and ingenuity is required to keep things running (less in aggregate, I mean, not in depth).

    The ISP apocolypse is similar to what has happened in nearly every other industry: start off with thousands of little operations which compete fiercly for customers and market share. Eventually only a few will be left. After a while the service stops being differentiated from company to company and they compete on price. Once that happens, the company with the best economics - the most efficient - wins.

    Look at Earthlink; their slogan is, "We're 10% better than AOL." For most people that's enough. Sure, people reading this comment probably want shell access on a *nix box for their $20/month, but Joe Sixpack just wants something that's easy to use (i.e. limited in options and functionality so it doesn't confuse him).

    Yes, it's very sad that so many good ISPs are going away. My personal favorite, Teleport [teleport.com], was based in Portland, Oregon for years. They were reliable, responsive, and hacker-friendly. The got bigger, got inhaled by OneMain which was promptly inhaled by Earthlink. My service went from "shell access to pine" to "pray that 50% of my mail makes it through" in less than a month. And now I'm stuck with Earthlink's port 25 blocking [earthlink.net].

    I just signed up with another local ISP [hevanet.com]. Hopefully they won't be bought too soon. :)

    question: is control controlled by its need to control?
    answer: yes
  • by Cardinal ( 311 ) on Sunday April 08, 2001 @10:42AM (#307161)
    I'm afraid I don't see much hope for the good old days when there were two dozen ISPs available here in the Portland [portland.or.us], Oregon area. Instead, the ISP market will be mostly the impersonal national companies.

    It's already blindingly obvious that the cable modem market in the US will never allow a local ISP a share of the market, which is one reason I prefer DSL: I can get my service from a local ISP. Sure, the line still comes from Verizon, but it's better than nothing.

    But the DSL market is going the way of the cable modem market. Companies like Earthlink, the ISP-eating monster [earthlink.com], are rapidly buying up the small town ISP as they find themselves unable to compete with the budget of national companies, regardless of the quality of service.

    So, that's my bleak outlook on things. Last year, there were no less than 7 ISPs in my area offering DSL service. Since then, two have gone out of business, two have been purchased by national companies, and a couple others are fledging. One remains in high standing, and that's the one I'm with. :) Hopefully they can hold off the soulless acquisition advance for a few years.
  • by llywrch ( 9023 ) on Sunday April 08, 2001 @10:47AM (#307162) Homepage Journal
    Back in 1996, when I worked for an ISP, the vast majority of them here in Portland were running at a loss, with the resulting problems (late paychecks, making due with obsolete or underspecced equipement, etc.). But the owners held in there, betting on the day that they became ``big enough" to either be profitable -- or could sell out to one of the nationals & get their own paycheck.

    In short, unless one was running an ISP as a hobby, the present day of reckoning was bound to come.

    Add to this the fact most competitive local exchange carriers (or CLECS) are likewise bleeding red ink -- & all of the telco suppliers like Lucent were depending on increasing their revenues by selling to these ISPs, CLECS & DSL providers (sometimes at give-away rates), & it's obvious that we haven't seen the bottom of the crash in this market.

    My hope is that 10 years from now, we aren't right back to where we started circa 1980: one beauracratic corporation providing access to 80% of the US, & several equally unresponsive smaller ones servicing the remainder of the market.

    Geoff
  • by wraithgar ( 317805 ) on Sunday April 08, 2001 @11:13AM (#307163) Homepage Journal
    Yes, ISP's are becoming like long-distance service. People (most people who aren't complete computer geeks) could care less how long they wait for tech support, how fast their connection trains up, or anything like that, as long as it's cheap.

    The truth is, the differenct between ISP's ~really~ isn't that big (not for the major ones, at least) So if someone can get their internet for $1 cheaper at the next company down the road, they usually will.

    Unfortunately, this creates a problem, because now companies are competing for customers by price, rather than quality of service. It's a harsh reality, but to quote Radiohead "you do it to yourself, you do. And that's what really hurts..."

    We can't have it both ways, and it seems that people who know what they're doing are a minority. Meaning that the trend is going to continue, because the average person only cares that ~their~ internet only costs $7/mo. and really, how much of a network can you build w/ a customer base paying $7/mo?

    -----
  • by Hrunting ( 2191 ) on Sunday April 08, 2001 @10:55AM (#307164) Homepage
    I work for a regional ISP. Basically, the real problem with DSL is that the phone companies make it extremely difficult to sign up new customers. For our customers, they basically have to go through Bell to get their DSL line, telling them that they want service with us. When they get DSL installed, then we turn up our end. It used to be that they could call us and we'd setup everything (including handling work with the telco), but Bell did everything they could to make it difficult for us to do any work with them. Hence, we have the current situation. Along the way, when the customer calls, the phone company lets them know about special deals that their Internet provider has on getting DSL, and how much easier it is to sign up with them instead. You can get a free DSL modem and a discount on your service if you sign up through them. It smells very much like an abuse of a monopoly to me, but it's hard to put any pressure on them when they have the politicians in the palms of their money-filled hands.

    Make no bones about it, the Telcos are not going to give up their hold on DSL without a fight.

    On our side, we've basically shifted our focus. We still provide the best dialup service you can get, but we're targeting businesses now for Internet service. Most businesses need T1s, and with contracts, we don't have the same volatility. Unfortunately, most ISPs seem stuck on the on the dialup model, which was never a real big revenue generator anyway, what with AOL and the increase in cable modem usage.

    Mom-n-pop ISPs are going to go under, unless Mom and Dad are smart business people, and realize that they need to get off the sinking ship that is dial-up and DSL and move onto more stable revenue generators (such as business broadband and outsourced services). Of course, it sucks for the residential consumer, because what's left are giant companies that can afford the low prices that consumers are demanding through mass equipment purchases and rollouts. Those companies also have stronger revenue streams coming in from other subsidiaries, to make up for any short-term losses generated by an almost saturated dial-up market.

"If it ain't broke, don't fix it." - Bert Lantz

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