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Saturday, September 04, 2004 15:01 // SUCON'04, Technopark, Zurich, Switzerland // href
by Fredy Künzler
Things I learned
There is no money in ADSL. Swisscom expects the market to be saturated next year.
In summer 2005 Swisscom will offer SDSL (probably 2mb symertical) everywhere. It will be over-booked and not guaranteed availability.
SDSL is like ADSL but without Voice Line on the same wire.
Bluewin 40 million loss per year.
Sunrise can only survive because of their GSM license.
There is no Money in ADSL
End user pays CHF 45.55 (+VAT)
Provider pays CHF 31.20 for the ADSL link to Swisscom. In addition to this the provider has to pay for the network bandwidth between his network and the ADSL backbone (backhaul) this cost CHF 391 for 1 Megabit/s per Month. With moderate overbooking he can fit 40 ADSL customers into one Megabit. This adds another CHF 10 for each of his cutomers.
This means at the end of the day the ISP gets about 4 CHF per ADSL link and month.
The normal wholesale price for 1 Megabit/s connectivity is CHF 100 per Month.
Whats worse, in spring 2003 WEKO got Swisscom to lower the prices they charge for ADSL connectivity by 20%. Swisscom is fighting this decision in court. If they winn, all ISP will have to back the 'missing' 20% back to Swisscom. This will cause a great many of them to go out of buisness.
Content © by Tobias Oetiker