RE: Cyberworld Monitor - Telco's may seem friendly after this

Kyle Townsend (kyle@netease.net)
Mon, 16 Sep 1996 09:11:45 -0500

This may not be the place for this, so I'll try to
be brief.

I've been doing my best to get a broad sense of
where the industry is headed over the next
2-4 years and it looks to me like small ISPs are in for
big trouble. Even the "small" regional ISPs
(10,000+ customers) are sweating right now and
are in negotiations for mergers with other similar
sized ISPs around the country to join forces and go
national. Dunn & Bradstreet's technology research group
says 90 percent of ISPs will be gone by 2001.

Unfortunately, I'm having trouble laying hands on good
financial data, ratio analysis, port cost projections,
etc. for the industry. I'm having a lot harder time
finding any really small (100 to 2000 user) ISPs like
myself who seem to have much interest in the details
of the financial and structural outlook for the industry.

I really think that, if we don't wake up, smell the
coffee, and try to get a GOOD indpendent-ISP trade
association going and explore some ideas like
cooperative access agreements, organizing our own
IP address authority; peering at major switch points;
collective bargaining with the national carriers; etc.,
we may as well kiss it goodbye.

IF THERE IS ANYBODY OUT THERE who is interested in
pursuing any of these ideas, or anybody knows of
a good small-ISP trade association already in
existence, I WOULD LOVE TO HEAR FROM YOU.

Sincerely,

Kyle L. Townsend, Managing Member
NetEase Internet Access Service
a division of Mesa Partners, LLC
kyle@netease.net

----------
From: Ed Longstrom
Sent: Monday, September 16, 1996 6:05 AM
To: portmaster-users@livingston.com
Subject: Cyberworld Monitor - Telco's may seem friendly after this

To All,

I have all of the same problems aforementioned with our
local telco, NYNEX. Tarriff nonsense, no lines, etc.
One thing I heard is that they don't like ISP's because
the ruin what's called "holding times", since internet
users are on the phone for more than 5-10 minutes
usually. This is their fault, not ours.

Looks like the smaller ISP's may be sandwiched. Local
telco on one side, big core internet routing on the other.
I think everyone should check out
http://www.boardwatch.com/mag/96/sept/bwm17.htm

Please read this with a speculative eye.

Let me know what you think. And if you would like to
be on a mailing list about the article topics.

Ed Longstrom

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