DSL

Best of the ISP-Lists

Satellites Versus the Wired World

One member of the ISP-DSL challenges the rest to offer satellite access instead of DSL. The discussion heats up rapidly as DSL providers defend their business and their technology.

On the ISP-DSL list in November, CM bragged:

"Why is everyone still selling DSL??? We do Satellite Internet Access, and let me tell you, cable and DSL are in the past. Satellite is here, and is going to kill them both."

Angry responses in support of DSL arrived at broadband speed:

[SA scoffed] "If you think satellite smokes DSL, you're using the wrong DSL provider."

[RB contended] "Sure, satellite will carve out a small niche in suburban and rural areas, not to mention a large share of the market in Latin America and parts of Asia and Africa. But here in the US, satellite lost in the first elimination round.

And DSL is beating cable, too: more people today have access to DSL service today than to cable, despite the latter passing more homes. According to TeleChoice, there were two million DSL lines as of the end of the third quarter. In a year, that will probably be five million. Game's over, dude: go home." [TR added] "I don't know anyone with cable that doesn't wish they had something else, and I don't know anyone who has kept satellite for more than three months-maybe that's why they want three-year contracts to hook people up now. Only DSL has controllable QoS, and that fact will become increasingly important as more and more services are offered over IP."

DL joined the argument by contending that cable, not DSL, is likely to beat all competition:

"Cable is going to beat everyone in the residential sector. Why? Because once a given head-end is equipped, every customer served from that head-end can get the service, which is available on a short lead time with a single phone call to a financially strong company that controls all aspects of the customer experience and can sell the customer more than just Internet access (TV programming as well).

Compare this to DSL, which is a crap shoot in terms of actually getting connected, and often involves four different organizations between the customer and the actual network.

As for satellite competing in this marketplace, unless the equipment and setup fees drop down to zero within 4-6 months, and the monthly cost is down to around what it costs for DSL or cable, it is doomed to run a distant third, or even fourth, behind traditional dialup services. What the public wants is fast, cheap Internet access. Aside from reaching rural areas, just what need does satellite access fill that the other services do not?"

Finally, AD argued that everyone has a role:

"Cable and DSL and Satellite are all here to stay—each has its place in the market. The only question that remains is, who will have the larger market share? When you factor everything in, at this moment in time DSL is probably likely to have it. Of course, that's until the next new technology breaks ground. So get on with it: sell what you can make a profit on!"

—End

 

Related articles:
	[Nov. 15, 2000]	Top US ISPs by Subscriber
	[Oct. 19, 2000]	Can Gilat Compete With DSL?
	[July 19, 2000]	Satellites Reach the Rest of the World