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ComReg is pleased to welcome eircom's revised FRIACO product pricing

  • 21-02-2003 6:56pm
    #1
    Closed Accounts Posts: 4


    ComReg is pleased to welcome eircom’s revised FRIACO product pricing
    submission. After review and analysis ComReg finds the proposed:
    PFRIACO un-metered traffic charge of € 14,728 per 2Mb/s
    to be adequately cost justified. ComReg is also pleased to accept eircom’s
    proposal that these rates be reviewed at 6 monthly intervals from the date of
    In the light of the rapid review date and the importance of price stability and
    predictability for this new product in a volatile market, ComReg have decided
    that these charges should be final and that retrospection should not apply.

    So what does this mean exactly?


«1

Comments

  • Closed Accounts Posts: 741 ✭✭✭longword


    [EDIT]Great big giant invalid assumption ahead[/EDIT]

    Well, we don't know exactly what that €14,728 buys the ISP, but it looks like the price for a single dialup user with a 48k average connection, transferring data 24/7, will cost just shy of €350 per month ex VAT. Should be possible to budget for say a 30:1 contention ratio and hope for the best, comes to about €11.50. Guesstimate as much again for service provision, add your 21% VAT, and it should be possible to do a product for €30 so long as you can control the users such that the contention ratio doesn't bit too hard.

    A better guess would need way more information and a careful examination of the small print. Does that cost cover modem banks for example?


  • Closed Accounts Posts: 17,163 ✭✭✭✭Boston


    Originally posted by longword
    Well, we don't know exactly what that €14,728 buys the ISP, but it looks like the price for a single dialup user with a 48k average connection, transferring data 24/7, will cost just shy of €350 per month ex VAT. Should be possible to budget for say a 30:1 contention ratio and hope for the best, comes to about €11.50. Guesstimate as much again for service provision, add your 21% VAT, and it should be possible to do a product for €30 so long as you can control the users such that the contention ratio doesn't bit too hard.

    A better guess would need way more information and a careful examination of the small print. Does that cost cover modem banks for example?

    first off i dear say that a yearly price or at worst 6 month price. Second, there is no contention ratios on dial up internet access. you get 48k and thats it (im nearly positive on this.) So your looking at a price of around 30 euro wholesale, and around 42 euro with vat and a profit margin.


  • Closed Accounts Posts: 749 ✭✭✭Dangger


    See here for a table of pricing for 2mb friaco circuits relating to BT's network. Remember these prices are in sterling. Perhaps someone could do a conversion?
    Description Effective Date Until Charge per month
    FRIACO Virtual Path Charge per 2Mb 01/06/2000 14/02/2001 £1060.63
    FRIACO Virtual Path Charge per 2Mb 15/02/2001 30/09/2001 £854.80
    FRIACO Virtual Path Charge per 2Mb 01/10/2001 31/03/2002 £832.60
    FRIACO Virtual Path Charge per 2Mb 01/04/2002 17/07/2002 £786.18
    FRIACO Virtual Path Charge per 2Mb 18/07/2002 31/03/2003 £719.62
    FRIACO Virtual Path Charge per 2Mb 01/04/2003 £673.02

    Have not got time to scrutinise these prices in the extreme right now but this document is a good starting point for having the eircom price compared to.


  • Closed Accounts Posts: 234 ✭✭MagicBusDriver


    Just guessing, but there is 30 64k channels in 2mb, so 14,728/30/12 = 40.91 per port. If these ports were contented 10:1 it would give a wholesale price of €4.09.


  • Closed Accounts Posts: 6,718 ✭✭✭SkepticOne


    Originally posted by Dangger
    See here for a table of pricing for 2mb friaco circuits relating to BT's network. Remember these prices are in sterling. Perhaps someone could do a conversion?
    That figure translates to GBP 10,038.9772, so it compares to the rate at which FRIACO came out at in Britain in 2000. It will need a lot of further analysis.


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  • Registered Users, Registered Users 2 Posts: 5,741 ✭✭✭jd


    Originally posted by Boston
    first off i dear say that a yearly price or at worst 6 month price. Second, there is no contention ratios on dial up internet access. you get 48k and thats it (im nearly positive on this.) So your looking at a price of around 30 euro wholesale, and around 42 euro with vat and a profit margin.
    You wouldn't budget on every user staying on 24X7 so thats where the contention ratio comes in, I imagine.


  • Closed Accounts Posts: 741 ✭✭✭longword


    Wow, that's per year? Sweet! I assumed it was per month. There has to be small print though. Like the €300/€272 to turn a regular dialup port into a FRIACO port. From that, I would have to guess every single dialup user constitutes a full 64kbps regardless of whether or not they're doing anything at any given time - so no contention at that level, not counting users that are offline, and telecos still run the modem banks (these days a 'modem bank' is typically a set of boxes that each take an straight-up E1 2Mbit circuit anyway).


  • Closed Accounts Posts: 17,163 ✭✭✭✭Boston


    Originally posted by jd
    You wouldn't budget on every user staying on 24X7 so thats where the contention ratio comes in, I imagine.
    then thats not connection ratio as i would call it, ever wonder why somethimes you connect to the web and then just nothing, no data coming or going, thats because they have to many people connecting and to few ports. in the conventional sense of a contention ratio(like with adsl) if more people connected you speed just went down. Of course they could allwasy to an esat effort and instead of giving people a decent service give everyone a **** service and pack more it. Again this is not connection ratio, in fact i dont know what its called. I just know when your talking about contention ratios yourbeing very specify to something that doesnt apply to dial up.

    Yes isp's operate ratios, but i'd be very slow to call them connection ratios. I think the average is one port to every 50 users for those free dial up services. the effects are quite different to broadband


    I can remember long talks with various people in the industry where they where trying to explain this principal to me, and why friaco was so expensive to run.

    now according to dangger these are monthly prices whic i fail to see how anyone could make money off.


  • Closed Accounts Posts: 6,718 ✭✭✭SkepticOne


    Originally posted by Boston
    then thats not connection ratio as i would call it, ever wonder why somethimes you connect to the web and then just nothing, no data coming or going, thats because they have to many people connecting and to few ports. in the conventional sense of a contention ratio(like with adsl) if more people connected you speed just went down. Of course they could allwasy to an esat effort and instead of giving people a decent service give everyone a **** service and pack more it. Again this is not connection ratio, in fact i dont know what its called. I just know when your talking about contention ratios yourbeing very specify to something that doesnt apply to dial up.
    Theres bandwidth contention and theres modem contention. I've seen the term 'contention ratio' in both contexts.
    now according to dangger these are monthly prices whic i fail to see how anyone could make money off.
    The figure of 14,728 euros is per annum, not per month.


  • Registered Users, Registered Users 2 Posts: 5,741 ✭✭✭jd


    Originally posted by Boston
    then thats not connection ratio as i would call it,
    chill man...I just gave my view on the context longword used the term "contention ratio"..
    anyway contention is an issue..

    contention(1) Competition for resources. The term is used especially in networks to describe the situation where two or more nodes attempt to transmit a message across the same wire at the same time.

    or
    http://www.its.bldrdoc.gov/fs-1037/dir-009/_1245.htm
    contention: 1. A condition that arises when two or more data stations attempt to transmit at the same time over a shared channel, or when two data stations attempt to transmit at the same time in two-way alternate communication. Note: A contention can occur in data communications when no station is designated a master station. In contention, each station must monitor the signals and wait for a quiescent condition before initiating a bid for master status. 2. Competition by users of a system for use of the same facility at the same time.


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  • Closed Accounts Posts: 17,163 ✭✭✭✭Boston


    .
    chill man...I
    Just pointing out that the contention ratios talked about so much here are different then the conention ratios used for dial up. I did say "as i would call it" not as "you would call it" or "anybody else would call it"
    Originally posted by SkepticOne
    The figure of 14,728 euros is per annum, not per month.
    fair enough, just pointing out thought there not the same thing . As for the monthly thing, that was my original point,i miss read bageer post and took it as 10,000 not 1000,its late. I worked it out at about 30 euro wholesale so i don't really see where "contention ratio's come in"

    Btw i'd like to draw you attention to where i say isp's operate dial ratios on those free services of about 50:1(bt standard i think)
    nice of you to inform me that theres "modem contention" i mean i never would have come to that conclusion, o wait i did


  • Closed Accounts Posts: 6,718 ✭✭✭SkepticOne


    Originally posted by Boston
    .
    Btw i'd like to draw you attention to where i say isp's operate dial ratios on those free services of about 50:1(bt standard i think)
    nice of you to inform me that theres "modem contention" i mean i never would have come to that conclusion, o wait i did
    Yeah, they can get away with pretty high ratios on these because a lot of people just use them for collecting email etc. I've seen 10:1 quoted a fair few times for flat rate.


  • Closed Accounts Posts: 17,163 ✭✭✭✭Boston


    Originally posted by SkepticOne
    Yeah, they can get away with pretty high ratios on these because a lot of people just use them for collecting email etc. I've seen 10:1 quoted a fair few times for flat rate.
    I liked you other answer better :p


  • Closed Accounts Posts: 255 ✭✭zz03


    Originally posted by Politics.ie
    So what does this mean exactly?
    So ‘twill cost an ISP EUR 100 per month inc VAT (in eircom network FRIACO access fees) to allow someone to stay online all the time using 2 ISDN channels at a paltry 128k.

    Or EUR 50 per month if the ports are shared by two customers.

    Or EUR 25 per month if the ports are shared by four.

    Sharing at more than 4:1 will probably mean lots of busy tones at peak access times. Any offering will have to be scaled for peak times – otherwise they’ll end up with an M50 toll booth Naas Road to Dublin Airport queue saga.

    On top of that there’s the internet feed cost, the ISP’s haulage cost (this is not a single or double tandem product) to get the feed to each exchange and a margin for the ISP to cover their operating expenses, financing costs and profit margin.

    Not to mention the eircom charge for an ISDN line (BRA) (EUR 30.99 pm).

    Cable and DSL surely win hands down on the economic and performance front?

    zz..


  • Closed Accounts Posts: 6,718 ✭✭✭SkepticOne


    I've never heard of FRIACO being sold on as a dedicatated port to the end user. There is always contention.

    I doubt if it will be attractive to very heavy users who will want DSL anyway. The pricing needs to be such that moderate users sign up, in which case a higher ratio will be possible. There is some debate as to what this price should be, however.


  • Closed Accounts Posts: 741 ✭✭✭longword


    Originally posted by SkepticOne
    I've never heard of FRIACO being sold on as a dedicatated port to the end user. There is always contention.
    The dedicated port is at the ISP, not at the customer premises. There's contention on two levels - the modems:users ratio, and bandwidth:modem port ratio.


  • Closed Accounts Posts: 6,718 ✭✭✭SkepticOne


    Originally posted by longword
    The dedicated port is at the ISP, not at the customer premises. There's contention on two levels - the modems:users ratio, and bandwidth:modem port ratio.
    I was responding to zz03, so my answer was in the context of how the 64k friaco port is split up. Sorry if I did not make that clear. My point was that I've never heard of this being offered under any retail deal on a dedicated basis.

    zz03 said: "So ‘twill cost an ISP EUR 100 per month inc VAT (in eircom network FRIACO access fees) to allow someone to stay online all the time using 2 ISDN channels at a paltry 128k. "


  • Closed Accounts Posts: 741 ✭✭✭longword


    Originally posted by SkepticOne
    I was responding to zz03, so my answer was in the context of how the 64k friaco port is split up. Sorry if I did not make that clear. My point was that I've never heard of this being offered under any retail deal on a dedicated basis.

    zz03 said: "So ‘twill cost an ISP EUR 100 per month inc VAT (in eircom network FRIACO access fees) to allow someone to stay online all the time using 2 ISDN channels at a paltry 128k. "
    He's right though. For an ISP to allow a user to stay online 24/7 with dual channel ISDN it will cost the ISP the best part of €100 in FRIACO access.


  • Closed Accounts Posts: 6,718 ✭✭✭SkepticOne


    Originally posted by longword
    He's right though. For an ISP to allow a user to stay online 24/7 with dual channel ISDN it will cost the ISP the best part of €100 in FRIACO access.
    Yes. I was not disagreeing with him, merely pointing out that I had never heard of retail flat rate being offered on this basis. You were confused about whether or not I was referring to the modem:user ratio. I hope I have cleared this up. It is the 64k port which is contended. Backhaul bandwidth may be contended, but this has nothing to do with FRIACO, the wholesale product.


  • Registered Users, Registered Users 2 Posts: 2,077 ✭✭✭parasite


    any update of when this will be available to the end user ?


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  • Closed Accounts Posts: 6,718 ✭✭✭SkepticOne


    Originally posted by parasite
    any update of when this will be available to the end user ?
    According to ComReg's press release, "Flat rate access is scheduled to be
    available to retail consumers and business by 25 June 2003."


  • Closed Accounts Posts: 255 ✭✭zz03


    Originally posted by SkepticOne
    Yes. I was not disagreeing with him, merely pointing out that I had never heard of retail flat rate being offered on this basis.

    I was trying to highlight a number of practical issues the ISP will face offering flat rate dial-up services in terms of cost and service levels.

    If an ISP offers a flat rate dial-up service and customers can’t connect when they want to (ie at peak time when they come home in the evening) they will be screaming and shouting about the ISP in question and their busy tones. It doesn’t really matter that between 01.00 and 17.30 every day there might be no problem getting connected.

    To avoid mass customer complaint the ISP must purchase sufficient FRIACO ports on each eircom switch in the country to meet peak time demand. (FRIACO ports are just ordinary ISDN phone “lines” in reality which are sold in “packs” of 30 for EUR 14,728 + VAT per annum). The same lines can carry analog dial-up access and 64k is used up per analog dial-up customer - even if they connect at 28k or 56k.

    Unlike the DSL ISP, the FRIACO ISP has to juggle with a variable FRIACO access cost and a flat fee on the income side – depending on peak time customer usage patterns.

    To service a 128k ISDN customer who insists on being always on, the ISP will have to allocate 2 lines out of a 30 pack. This will cost the ISP 40.91 + VAT = EUR 49.50 per month per line = EUR 99 for 128k.

    Moving away from the “always on” customer to the more realistic situation where each port ends up being shared – how many flat rate customers can an ISP sign up per port installed stressing again AT PEAK TIME?

    I suspect that the peak time ratio might be near 4:1 – and if this is the case for the sake of argument, it would imply a cost of EUR 25 per month per customer to provide 128k FRIACO in terms of eircom FRIACO charges alone.

    Compare and contrast with the ISP offering DSL. Nobody will have to suffer busy tones even if every customer in the country went online via DSL between 20.00 and 21.00. While things might slow down, the black and white “can’t get through” busy tone won’t be heard.

    When you add the other costs – international ISP feed, the ISP’s backhaul feed to each exchange in the country over leased lines, and general overheads FRIACO looks like bad value for money.

    zz..


  • Closed Accounts Posts: 72 ✭✭skrobe


    this might explain more . Headline in Irish INDO today(sat)
    EIRCOM AGREE TO EUROPES CHEAPEST FRIACO DEAL.... part of story :

    THE Commission for Communications Regulation (ComReg) has accepted a wholesale rate of €14,728 per annum from Eircom for the introduction of flat rate internet access, after prolonged negotiations between the duo.


    This is the price that Eircom will charge other operators for the provision of a Flat Rate Internet Access Call Origination (FRIACO) service.

    It translates as a basic monthly charge of €12.77 although there are other administration and process charges that will be added on to this figure, which applies to a 2 megabit connection per annum.


    It is believed that other operators like Esat BT and Nevadatele will now be in a position to provide a consumer rate of between €25 and €35 per month for an always-on internet service.


    Market watchers said the wholesale rate is the cheapest in Europe.

    :D:D:D:D
    j


  • Moderators, Motoring & Transport Moderators, Technology & Internet Moderators Posts: 23,279 Mod ✭✭✭✭bk


    Originally posted by zz03
    I was trying to highlight a number of practical issues the ISP will face offering flat rate dial-up services in terms of cost and service levels.

    Yes there are a number of issues relating to FRIACO, however they aren't really all that big. The price quoted by Eircom is about equivalent to the price quoted by BT at the end of 2001 in the UK. At that stage in the UK FRIACO was well established and a proven commercial and technological success.

    There is no reason to think that the same can't be done here in Ireland and that the issues relating to FRIACO will likely be solved here in the same way as they where solved in the UK.
    Remember both UTV and EsatBT (through BT) have a great deal of experience in running FRIACO networks in the UK.

    As long as Eircom plays fair then there is no reason why FRIACO can't be rolled out in a timely and efficient manner.

    BTW two points:

    1) No one ever said FRIACO was a 24/7 always on product, that is DSL, FRIACO is a dial up when you want product.

    Contention Ratios will be dealt with in the same way as it is in the normal dial up world, but with lower rates probably due to greater use.

    2) I don't believe Dual channel ISDN is offered as part of any FRIACO product in the UK, I believe normally if you want this, you have to get two FRIACO accounts or a special FRIACO account that is more expensive then the norm in order to take into account the extra expense.

    I'm sure it will be the same here and it is only fair.


  • Moderators, Motoring & Transport Moderators, Technology & Internet Moderators Posts: 23,279 Mod ✭✭✭✭bk


    Originally posted by skrobe
    Market watchers said the wholesale rate is the cheapest in Europe.

    As usual the press get it wrong, the price is very competitive but certainly not the cheapest, BT offers much cheaper rates now.

    I certainly believe we could see EUR 25 products coming from this, come on UTV :D


  • Closed Accounts Posts: 6,718 ✭✭✭SkepticOne


    Originally posted by bk
    There is no reason to think that the same can't be done here in Ireland and that the issues relating to FRIACO will likely be solved here in the same way as they where solved in the UK.
    Remember both UTV and EsatBT (through BT) have a great deal of experience in running FRIACO networks in the UK.
    There are a number of techniques that can be used. Idle cut-offs and periodic mandatory cut-offs, warnings to extremely heavy users who take up ports, etc.

    I know there will be a lot of people here thinking "that's crap, I'm not having that! I want 24 hours of uninterrupted use.", but flat rate is probably not for them. These people probably want DSL anyway.

    Flat rate dial-up is primarily for the much larger number of people who don't spend all hours on the computer and for whom these restrictions won't be a burden. These are the people the ISPs will want to attract. The attraction for these people will be a fixed bill each month and no call charges.

    Now, if a 25 euro product in Ireland corresponds to the 21 euro product in the UK, then off peak packages in Ireland should also be possible. These are what I would suggest will be the most attractive to the largest group of 'normal' users. If the ISP can get a lot of these, then modem ratios aren't such a huge problem.

    I think a lot of people are making the mistake of comparing DSL and dial-up on purely technical merits.


  • Closed Accounts Posts: 255 ✭✭zz03


    Originally posted by bk
    At that stage in the UK FRIACO was well established and a proven commercial and technological success.
    Have you read this then?

    1) No one ever said FRIACO was a 24/7 always on product, that is DSL, FRIACO is a dial up when you want product.
    BT actually call their 150 hour limited product "24/7". And they get away with it too!

    Contention Ratios will be dealt with in the same way as it is in the normal dial up world, but with lower rates probably due to greater use.

    Contention ratios are fine most of the time. The ISP will have to buy lots of FRIACO capacity to deal with the peak two hours of the day - which capacity will be idle for much of the rest of the 24 hour period.

    2) I don't believe Dual channel ISDN is offered as part of any FRIACO product in the UK, I believe normally if you want this, you have to get two FRIACO accounts or a special FRIACO account that is more expensive then the norm in order to take into account the extra expense.

    Under the 150 hour "24/7" BT plan one can use two channels for 75 hours.

    zz..


  • Closed Accounts Posts: 255 ✭✭zz03


    Originally posted by SkepticOne

    I think a lot of people are making the mistake of comparing DSL and dial-up on purely technical merits.
    It is not a single dimensional issue.

    Dimension A = Eircom's pricing strategy for FRIACO ports
    Dimension B = The Irish consumer's level of patience with busy tones at peak times
    Dimension C = The real network costs of using a switched network for handling the final leg of what is a packet based service.
    Dimension D = The loss of revenue to the incumbent from the loss of other dial-up traffic while a line is being used for dial-up internet access
    Dimension E = The costs ISPs will have to incur to roll out FRIACO access to every exchange in the country. (The DSL rollout using wholesale bitstream is far easier).
    Dimension F= The bang for the buck. FRIACO is what narrowband users have at the moment, only probably slower with higher usage and contention. DSL is a completely different experience.
    Dimension G = In the few other countries it has been tried it hasn't been very successful.

    zz..


  • Closed Accounts Posts: 6,718 ✭✭✭SkepticOne


    Originally posted by zz03
    Dimension A = Eircom's pricing strategy for FRIACO ports

    Dimension D = The loss of revenue to the incumbent from the loss of other dial-up traffic while a line is being used for dial-up internet access
    Could you expand on points A and D. Aren't these fully addressed in the FRIACO documents from ComReg.

    The other points are fairly obvious.


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  • Closed Accounts Posts: 17,163 ✭✭✭✭Boston


    Originally posted by SkepticOne
    Could you expand on points A and D. Aren't these fully addressed in the FRIACO documents from ComReg.

    The other points are fairly obvious.

    Sorry haven;t botther reading the rest of this stuff but, as far as i can see eircom make allot more money suppling 2mb's for adsl then friaco. and several times that again for leased lines.

    anyway i would just also liek to point out that the wholesale price is but one cost involved.


  • Closed Accounts Posts: 6,718 ✭✭✭SkepticOne


    Originally posted by Boston
    Sorry haven;t botther reading the rest of this stuff but, as far as i can see eircom make allot more money suppling 2mb's for adsl then friaco. and several times that again for leased lines.
    Most of the other 'dimensions' were concerned with the problems ISPs might face in supplying flat rate over FRIACO. I just wasn't sure how these two fitted in.

    1. Eircom's pricing strategy for FRIACO ports.
    2. The loss of revenue to the incumbent from the loss of other dial-up traffic while a line is being used for dial-up internet access.

    I'm talking in the context of this thread where ComReg have announced FRIACO pricing and previous documents have outlined what Eircom are required to do.

    In particular, point 2: the only people concerned with this would be Eircom surely.


  • Registered Users, Registered Users 2 Posts: 944 ✭✭✭nahdoic


    Originally posted by Boston
    as far as i can see eircom make allot more money suppling 2mb's for adsl then friaco. and several times that again for leased lines.

    Yes, which is why this FRIACO deal is so huge and will give the impetus needed for Ireland to catch up with the rest of the world. It's going to shake up the entire internet market in Ireland.

    It will demand for price re-adjustments for ADSL and leased lines. We're already seeing eircom trying to rush out their new cheaper, and more widely available RADSL service. Eircom now WANT you to get ADSL instead of FRIACO, as they can now make more money from ADSL. Their cosy little dial up market cash cow has been mandated from under them. And i do NOT want to start another discussion on caps, but I wouldn't be suprised at all if eircom remove or greatly increase the caps on all their ADSL offerings when a FRIACO consumer product is actually made available, all going well in June.


  • Closed Accounts Posts: 6,143 ✭✭✭spongebob


    Originally posted by zz03
    It is not a single dimensional issue.

    Dimension A = Eircom's pricing strategy for FRIACO ports
    Dimension B = The Irish consumer's level of patience with busy tones at peak times
    Dimension C = The real network costs of using a switched network for handling the final leg of what is a packet based service.
    Dimension D = The loss of revenue to the incumbent from the loss of other dial-up traffic while a line is being used for dial-up internet access
    Dimension E = The costs ISPs will have to incur to roll out FRIACO access to every exchange in the country. (The DSL rollout using wholesale bitstream is far easier).
    Dimension F= The bang for the buck. FRIACO is what narrowband users have at the moment, only probably slower with higher usage and contention. DSL is a completely different experience.
    Dimension G = In the few other countries it has been tried it hasn't been very successful.

    zz..

    Well done zz03, nice separation of strands :D

    A Keep it high and dont explain the logic, Comreg got sick of them in the end.
    B I see, dont bump the hogs for he first few months to max out the modem pool and get FRIACO a bad name for bizzies, sneaky but effective. Then blame ESAT :D
    C Same sh1te they peddled for CPS the "Hot Spots" come back again to haunt us
    D Should be A really. Greed is good. Eircom are not doing this for their own good you know, they are doing it because they have to.
    E Double Tandem is 48 exchanges out of 1100 , not too onerous.
    F Related to B and to funky router configs in the NOC. Packet prioritisation will not favour FRIACO users.
    G They went to Broadband within 2 or 3 years. No country has introduced FRIACO in the past 2 years so they are "Over the Curve" as it were.

    M


  • Closed Accounts Posts: 255 ✭✭zz03


    Originally posted by SkepticOne
    Could you expand on points A and D. Aren't these fully addressed in the FRIACO documents from ComReg.

    A: By charging a fixed price per port, eircom have pushed the peak time traffic processing cost to ISPs rather than absorbing it themselves.

    The alternative pricing model might have been for eircom to charge a fixed fee per FRIACO subscriber to the ISP. Under the alternative model, it wouldn’t matter to the ISP if 70 or 80% of his subscriber base came online between 20.00 and 21.00 every Tuesday. Eircom would have to have enough FRIACO ports in place to deal with this peak demand.

    Please also see Muck’s point about blaming the ISP (for busy tones).

    The scaling problem here is peak time demand – rather than the odd dialeruper who wants to stay online 24/24h.


    D: Think of any household with three, four, five or more people and a single phone line. I know one. Three kids – all boys – huge demand for dial-up. Impossible to get through to house on landline. Situation would probably get worse if they had FRIACO. If they had DSL, the line would be free again to make and receive calls. Generating more revenue for the incumbent.

    (MDSL + MVC) > (MFRIACO – MLOST)

    Where:
    MDSL = Eircom margin on DSL
    MVC = eircom margin on calls that can take place because of DSL
    MFRIACO = Eircom margin on FRIACO
    MLOST = lost margin on calls that can’t get through over wireline network.

    zz..


  • Closed Accounts Posts: 17,163 ✭✭✭✭Boston


    Originally posted by zz03
    A: By charging a fixed price per port, eircom have pushed the peak time traffic processing cost to ISPs rather than absorbing it themselves.

    The alternative pricing model might have been for eircom to charge a fixed fee per FRIACO subscriber to the ISP. Under the alternative model, it wouldn’t matter to the ISP if 70 or 80% of his subscriber base came online between 20.00 and 21.00 every Tuesday. Eircom would have to have enough FRIACO ports in place to deal with this peak demand.

    zz..

    Doesn't make sense for any wholesale supplier to operate in this fashion, they would put themsleves at a huge disadvantage


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  • Closed Accounts Posts: 6,718 ✭✭✭SkepticOne


    Originally posted by zz03
    A: By charging a fixed price per port, eircom have pushed the peak time traffic processing cost to ISPs rather than absorbing it themselves.

    The alternative pricing model might have been for eircom to charge a fixed fee per FRIACO subscriber to the ISP. Under the alternative model, it wouldn’t matter to the ISP if 70 or 80% of his subscriber base came online between 20.00 and 21.00 every Tuesday. Eircom would have to have enough FRIACO ports in place to deal with this peak demand.
    The first one is pretty much the standard for FRIACO. I doubt if ComReg would have entertained any other. It is the standard in Britain for example.
    D: Think of any household with three, four, five or more people and a single phone line. I know one. Three kids – all boys – huge demand for dial-up. Impossible to get through to house on landline. Situation would probably get worse if they had FRIACO. If they had DSL, the line would be free again to make and receive calls. Generating more revenue for the incumbent.

    (MDSL + MVC) > (MFRIACO – MLOST)

    Where:
    MDSL = Eircom margin on DSL
    MVC = eircom margin on calls that can take place because of DSL
    MFRIACO = Eircom margin on FRIACO
    MLOST = lost margin on calls that can’t get through over wireline network.
    Yes, with any PSTN line, there will be loss of revenue from incoming calls due to the nature of the PSTN line. Every call made on a PSTN line, prevents other calls being made on that same PSTN line.


  • Closed Accounts Posts: 255 ✭✭zz03


    Originally posted by Boston
    Doesn't make sense for any wholesale supplier to operate in this fashion, they would put themsleves at a huge disadvantage

    I'm not critical of eircom for the pricing model they imposed (assuming this is what you mean by “wholesale supplier").

    Flat-rate dial-up is a step backwards in an IP/ATM world. An unashamed exercise in dumbing things down and a wasteful “investment” in horse drawn trams and buggy whips in 2003.

    zz..


  • Registered Users, Registered Users 2 Posts: 9,046 ✭✭✭Dustaz


    Originally posted by zz03

    Flat-rate dial-up is a step backwards in an IP/ATM world. An unashamed exercise in dumbing things down and a wasteful “investment” in horse drawn trams and buggy whips in 2003.

    Thats all well and good but how do you suggest people outside of DSL enabled areas connect to the net without spending a fortune?

    FRIACO is needed full stop.


  • Closed Accounts Posts: 6,143 ✭✭✭spongebob


    Originally posted by zz03
    I'm not critical of eircom for the pricing model they imposed (assuming this is what you mean by “wholesale supplier").

    Flat-rate dial-up is a step backwards in an IP/ATM world. An unashamed exercise in dumbing things down and a wasteful “investment” in horse drawn trams and buggy whips in 2003.

    zz..

    I agree with ZZ on the technology front.

    The reason it is important on the evolutionary scale is that this is the First product introduced by Comreg and forced upon Eircom.
    Minister Ahern...in fairness to him and his staff..... had to force Comreg to do this , the old ODTR was a dithering jelly when it came to doing anything decisive.
    The new USO directive allows them to force product introduction more widely from July 2003.

    Up to now, Eircom have strangled technological advances by

    1. Not offering a product (ADSL for example, Eircom tested this in Ennis between 1998 and 2001 and would not deploy it nationwide)
    2. Taking the absolute piss when it came to wholedale variants, these are required when eircom DO offer new products, which is how Eircom mucked everybody around between 2001-2002
    3. When hurdles one and two are cleared it then spends time sending PR Bunnies around to slob journalists to tell slobbo thet there is'NO Demand' for the service they have been forced to introduce. Ask nbuttimer@eircom.ie how a 7.9% Line Rental rise was reported as 2.9% by the slobs.

    There for ya


  • Closed Accounts Posts: 255 ✭✭zz03


    Originally posted by SkepticOne
    The first one is pretty much the standard for FRIACO. I doubt if ComReg would have entertained any other.
    Why should ComReg be bothered if eircom wish to shoot themselves in the foot!?

    It is the standard in Britain for example.
    Get Away!

    Yes, with any PSTN line, there will be loss of revenue from incoming calls due to the nature of the PSTN line. Every call made on a PSTN line, prevents other calls being made on that same PSTN line.
    Fascinating. But have you considered that if you put a DSL thingie at each end of the same copper pair you could run tens, hundreds or even thousands of voice calls over the same copper pair and/or high quality video, DVD audio quality sound etc - depending on loop length?

    What a waste of copper this PSTN lark...

    zz..


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  • Closed Accounts Posts: 6,718 ✭✭✭SkepticOne


    Originally posted by zz03
    Fascinating. But have you considered that if you put a DSL thingie at each end of the same copper pair you could run tens, hundreds or even thousands of voice calls over the same copper pair and/or high quality video, DVD audio quality sound etc - depending on loop length?
    A few points.

    1. We are dealing with monopolistic idiots who are only now (2003) realising that perhaps people aren't interested in paying 100 euros for basic DSL regardless of how high spec it might be.

    2. Their plans (if they are not taking the piss), will initially cover at most one third of the lines (assuming not too many are split or rotten). Even by September, 2004, assuming this is not a stunt to get money out of the Government, at most 2/3 of the lines will be covered (again, assuming that they are not pair gain systems or generally rotten).

    3. The new DSL at 54 euros will still be too expensive for most people. The arguments about DSL being more efficient in terms of transferring data will fall on deaf ears.

    4. Therefore there needs to be some alternative for people who want to surf the web for a fixed cost without being ripped off.

    5. The main competitor, Esat, are no better with their joke DSL offering.

    Don't get me wrong, I believe affordable DSL is long overdue in Ireland. I just don't think the current shower can be trusted delivering it, and in the meantime there needs to be some alternative.

    Even with affordable broadband, there will be many who are reasonably content with dial-up, whether flat rate or metered.


  • Closed Accounts Posts: 255 ✭✭zz03


    Originally posted by SkepticOne

    3. The new DSL at 54 euros will still be too expensive for most people. The arguments about DSL being more efficient in terms of transferring data will fall on deaf ears.

    Absolutely. Logic surely dictates that the DSL pricing be reduced rather than wasting millions on a platform that delivers a sub standard service to the customer. Eircom's CEO has publicly stated that the company would prefer DSL to FRIACO, but if the market wants FRIACO they will give FRIACO.

    Bottom line. Eircom prefer DSL. The consumer prefers DSL too (or at least 100% of those consumers who have experienced the choice between narrowband and broadband do).

    I could get rude at this point, but it goes against the grain.

    zz..


  • Closed Accounts Posts: 6,143 ✭✭✭spongebob


    Originally posted by zz03
    Absolutely. Logic surely dictates that the DSL pricing be reduced rather than wasting millions on a platform that delivers a sub standard service to the customer. Eircom's CEO has publicly stated that the company would prefer DSL to FRIACO, but if the market wants FRIACO they will give FRIACO.

    Bottom line. Eircom prefer DSL. The consumer prefers DSL too (or at least 100% of those consumers who have experienced the choice between narrowband and broadband do).

    I could get rude at this point, but it goes against the grain.

    zz..

    the BOTTOM line is different.

    Eircom recently announced that they will have enabled 150 out of 1100 exchanges for DSL by END SEPTEMBER 2004 . Thats 14% of Exchanges. Thats the BOTTOM LINE.

    Eircom prefer to give us DSL allright, in big cities only by drip feed.

    Over 80% of Ireland by Geographic Area will Not have DSL by END SEPTEMBER 2004 . Thats the BOTTOM LINE

    Meanwhile Eircom are supposed to have a Wireless 384k DSL type product available in 43% of Ireland by Geographic Area by END June 2003 . Where the **** is it ?

    They are in gross breach of their Wireless licencing obligations. Thats the BOTTOM LINE.

    M


  • Closed Accounts Posts: 6,718 ✭✭✭SkepticOne


    Originally posted by zz03
    Absolutely. Logic surely dictates that the DSL pricing be reduced rather than wasting millions on a platform that delivers a sub standard service to the customer. Eircom's CEO has publicly stated that the company would prefer DSL to FRIACO, but if the market wants FRIACO they will give FRIACO.
    I would not take this on face value. Eircom have had plenty of opportunities to show that they are interested in offering DSL at affordable prices. Now, when FRIACO is being imposed on them, they are suddenly interested in actually selling DSL. As Muck pointed out, this is a company who have been 'testing' DSL since 1998. Let's pretend this is genuine, though. If Eircom feel that DSL is what the consumer wants then noone is stopping them from selling DSL to them.
    Bottom line. Eircom prefer DSL. The consumer prefers DSL too (or at least 100% of those consumers who have experienced the choice between narrowband and broadband do).
    Sure they do. So why are they still charging over 100 euros and applying strict line tests as well as bogus computer requirements.


  • Closed Accounts Posts: 255 ✭✭zz03


    Originally posted by Muck
    the BOTTOM line is different.

    Eircom recently announced that they will have enabled 150 out of 1100 exchanges for DSL by END SEPTEMBER 2004 . Thats 14% of Exchanges. Thats the BOTTOM LINE.

    Eircom prefer to give us DSL allright, in big cities only by drip feed.

    Over 80% of Ireland by Geographic Area will Not have DSL by END SEPTEMBER 2004 . Thats the BOTTOM LINE

    Meanwhile Eircom are supposed to have a Wireless 384k DSL type product available in 43% of Ireland by Geographic Area by END June 2003 . Where the **** is it ?

    They are in gross breach of their Wireless licencing obligations. Thats the BOTTOM LINE.

    M


    Agreed. Yes Yes yes. Bla Bla Bla.

    But none of the above gives any legit to FRIACO.

    Everyone wants DSL including eircom by their own admission.

    What's holding the rollout up? Why is it so expensive?

    zz..


  • Closed Accounts Posts: 6,143 ✭✭✭spongebob


    Originally posted by zz03
    Agreed. Yes Yes yes. Bla Bla Bla.

    Everyone wants DSL including eircom by their own admission.

    What's holding the rollout up? Why is it so expensive?

    zz..

    where have you been hiding for the past 2 years zz .:confused: . use the Boards search feature (top right) , there are 1000's of posts on the subject above.

    Eircom do not want DSL, they have come under ferocious pressure to get us as far as we are today. 2nd bottom from the infants in the EU.

    Why is the pope catholic ?

    M


  • Moderators, Motoring & Transport Moderators, Technology & Internet Moderators Posts: 23,279 Mod ✭✭✭✭bk


    zz03 don't you get it, we simply wouldn't be getting these new EUR 54 xDSL products if it wasn't for FRIACO.

    It isn't a coincidence that Eircom will be launching their new consumer xDSL product around the same time as FRIACO.

    Up until now Eircom has been making massive money from their per minute dial up (I believe it makes up 40% of Eircoms income), because of this Eircom have had ZERO interest in DSL.

    However FRIACO changes all this, Eircom will lose lots of money from dial up to their competitors, plus greater use of the net will negatively impact normal phone use.

    For this reason we are getting cheaper DSL products and a real drive from Eircom to get it out there. But don't fool yourself, if we weren't getting FRIACO, then this new DSL products would never have been launched.

    For this reason alone FRIACO has been worth it.

    Also FRIACO is very important to people who don't want to pay EUR 50 per month for the net (in other words most people) and also for the greater number of people who can't get DSL for a variety of reasons.

    Anyway I can't really see why you have a problem with FRIACO, unless you work for Eircom. It won't have any negative impact on DSL and in fact it will have a very positive impact on it, so what is the problem?


  • Closed Accounts Posts: 255 ✭✭zz03


    Originally posted by Muck
    where have you been hiding for the past 2 years zz .:confused: . use the Boards search feature (top right) , there are 1000's of posts on the subject above.

    Eircom do not want DSL, they have come under ferocious pressure to get us as far as we are today. 2nd bottom from the infants in the EU.

    Why is the pope catholic ?

    M

    I haven't been living on an island etc

    I just don't want to let people confuse the issue of "FRIACO is rubbish" with DSL delivery performance. Sceptic has been suggesting more or less that FRIACO is the only practical platform for most people.

    Mush minded thinking me says. A DSL modem costs no more than a regular dial-up thing. Give us all the real thing and stop playing around I say.

    Eircom are on trial here. Not zz03. Their CEO says that he prefers DSL to FRIACO. So do we all. Let's have it. Now.

    And if you don't want to provide it and can get away without providing it there surely is something rotten in the state of Ireland?

    Despite announcements, www.adsl.ie is still stuck in Nov 27 mode.

    Why?

    zz..


  • Closed Accounts Posts: 6,143 ✭✭✭spongebob


    mindboggle.jpg


  • Closed Accounts Posts: 255 ✭✭zz03


    Originally posted by bk
    zz03 don't you get it, we simply wouldn't be getting these new EUR 54 xDSL products if it wasn't for FRIACO.

    Anyone in the know will tell you that the presence of "EUR 54 xDSL" has absolutely nothing to do with FRIACO.

    Wind the tape back and look at one or two Irish website caches if you are curious!

    zz03


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