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Joltage Powers Down
jbyter writes "Wi-Fi service provider Joltage sent a e-mail to subscribers that read "It is with regret that I am writing to inform you that Joltage will be discontinuing its Wi-Fi subscriber and provider services effective at the end of this month." This could have been very cool, but due to economy and lack of subscriber participation they are no longer able to finance their operations."
Too bad -- this sounded like a good idea. The Joltage homepage isn't much help -- it's in place, but content-free. Any other Joltage customers who can comment on this?
For this to be popular, they would need some serious market saturation. I'm not going to try to find a joltage provider in my area, just for the 1/1000 chance to get cheaper bandwidth.
And the people selling their excess bandwidth would probably be breaking their agreement with their internet service provider.
It was just not meant to be.
No doubt a large part of the problem is that it is illegal to redistribute your broadband to people that haven't paid for it, as it should be -- the terms by which cable/DSL are sold are necessary to keep the costs down and the service available to subscribers. The ISPs aren't budgeting for our slack times to be used by 'passers-by'.
Try not. Do or do not, there is no try.
-- Dr. Spock, stardate 2822-3.
We'll see about that, Timothy. We'll just see.... ;-)
.
Its sad to see when people with good ideas being a bit ahead of their time run out of resources to develop their idea into something really big.
I take off my hat for them for being one of the pioneers of something that clearly is a part of the future... GG
True ravers don't need drugs
Perhaps the lack of comments by current customers indicates one of their major business problems...
On the other hand, maybe all their customers just haven't gotten new service yet.
a!
I would expect a company with excess bandwidth to downgrade their lines and save money, not to give it to somebody else for a lower sum.
;-)
I don't think even incompetent managers get T3 lines to look "cool" when several T1 will do.
The ENIAC Demo Competition
What seems like a neat idea doesn't actually turn out to be economically viable. Is this dot-com bust #42587?
Stop by my site where I write about ERP systems & more
Fascinating.
I think that's the problem... there weren't any other customers.
#42587 was the recently folded eBubbleGum.com, which sold packs of bubble gum at below retail prices with free shipping.
Please note that your local bakery takes up shelf space to sell their excess production at a lower price, rather than looking for a smaller rental space. In fact, they over produce a bit on purpose just so they can do this.
Not to mention that selling more for less consists of the entire mass market philosophy.
The point being that it's overall profits that count, not unit price.
KFG
aside from /. i have not heard a thing about this company. i guess we know why it failed.
Here are some of the (now obsolete, I guess) info pages they had:
http://joltage.com/jsp/home/joltage_network.jsp
http://joltage.com/jsp/home/provider_program.jsp
http://joltage.com/jsp/home/consumer_benefits.jsp
(If you can call that work - they didn't pay at the time:)
It was painfully obvious that the idea would never fly, though i have to admit that it was a cute technical hack. The "grassroots" systems do not seem to be working in US of A. Years of "customer service" indoctrinated population here to rely on someone else to provide the service. So don't expect anything that requires people to provide initiative (or anything else aside from the cold hard cash) to take off this side of the Atlantic.
On the other hand it seems that in Moscow the only way to get broadband internet is by means of your local microprovider - either tenant organized or, at least, tenant supported. Being unaccostomed to others taking care of one's problems moves people toward self-sufficiency.
In case of services, such as networks and many others this is a great weapon against monopolies taking over.
I thought it was an excellent idea, and they had some great software too. Only took a few minutes of messing around to get it going. They also didn't *make* you charge anyone. You could be a free service provider and still use their software. They also had top-notch immediate support through a web-based chat system. Although there were not many provider's around ( only 3 in Arizona that I could see by their maps ) it was a neat idea. Maybe they could release the source ( if they haven't already? ) and this could be a great tool for free WISP's.
you know, there really should be a catagory for -1 Disturbing.
tcpa SUX!!!!
than a Cuisinart.
And the day my coffee grinder has an IP address is the day I start grinding my coffee with a mortor and pestle.
I require my fridge to keep my food cold. That's it's job. To hold it's interior at a certain temperature. It's *my* job to select that temperature, as well as what goes in my fridge, and when.
The internet is a wonderful tool for dispersing information ( but not the only one, and only sometimes the best one).
It's a lousy tool for making toast, and the logic needed to do so is easily included in the toaster, where it belongs. And I sure as hell don't want to give my toaster the ability to ask me if I wouldn't really like to have some genuine Welch's Brand Grape Jelly with my toast.
Spam is bad enough as it is.
As for *everyone* being a content provider, if that includes the moron down the street, and his entire moron family. . . why? What's the point, either to me or *him*?
KFG
tells me *one way I can get where I've told it I want to go* after I get out of my car and start walking.
KFG
That required people taking initiative and gettings things working that weren't always easy. Both sysops and users had to make an effort to get connected, and they did it without huge networks of customer support. The fact is, though, that currently, the costs (time and effort) to get this working do not outweigh the benefits (saving a few bucks a month). Also, there's a higher barrier to entry having to find someone else to connect to.
Okay, maybe I'm out of the loop on this completely, but how many people reading this story have actually heard of Joltage? I haven't before today.
It's good to use your head, but not as a battering ram.
I'm surprised that the home page hasn't been slashdotted. Sure, there's nothing on it of substance, but that hasn't stopped us before...
alias uptime="echo '5:33pm up 22342352324 days, 6:28, 2124315623 users, load average: 2432.40, 12312.31, 123123.19'"
This is a dot.com era attitude. The development of the internet is NOT being held back. If you want to be a content provider then sign up for a higher bandwidth business connection and quit yer bitchin.
Mac OS X and Windows XP working side by side to fight back the night.
And yes, if my toaster has one, advertisers will have a line to it.
In fact, they'll pay the toaster manufacturer to make sure they do. If I were such a toaster manufacturer I'd solicit such business if I could.
Of course your milage may vary, but I'm not at all sure what benifit I would derive from worrying about my milk going sour while I'm out of town. For that matter, when I'm out of town for long enough for milk to go sour I've emptied my fridge first, pulled its plug out of the wall and gone to a certain amount of trouble to arrange to be somewhere I don't recieve email.
I have nothing against the internet. I'm here, aren't I? I'm even producing content right now. But there's such a thing as appropriate technology.
KFG
MSN Inspectors
Checkout the title bar of this MSN search error page!
But commercializing collective bandwidth sharing using fundamentally short-range, modest latency "hotspots"? Especially when it violates TOSes of most residential broadband providers? I just think people got caught up with the wireless hype and didn't think too much about the economics of it.
If you read this Wired story that was linked from the orignal Slashdot story you'll see why this failed:2 ,51353,00 .html
http://www.wired.com/news/wireless/0,138
Mac OS X and Windows XP working side by side to fight back the night.
shelf space *is* product. Any excess is quite saleable. In fact the profitability of supermarkets often depends on just how much space they sell to outside suppliers.
The analogy stands.
KFG
Precisely, therefore my fridge does not need an IP address.
Q.E.D.
KFG
Ah, the we want free stuff culture catches up with yet another service.
You need a FREE iPod Nano
"But the attitude that even desiring such a thing is stupid is equivalent to a '640k is enough for anybody' attitude. I'm the consumer, that's what I want, and that's what I will (eventually) get. Get it?"
Of course you'll "get it", and as long as we remain a world ruled by laws (there's no such thing as absolute freedom, even gravity is a restriction), and human nature (history shows that it's still going strong), there will be limits on what you can do[1]. Your desire to do "whatever you want" is an old one. Humanity being the rebellious nature that it is, admirable when altruistic, destructive when selfish, may just get all that you mention. But will they get it at the terms that their "whatever I want" nature demands?
[1] History also shows that the 640K barrier is positively easy to overcome, compared to the ones I've mentioned. I wish you the best, of the others, you'll need it.
I think that it is going to be hard for these pay services to grab hold because there are so many open access points.
A local cafe/coffee shop just put in free wifi. It is awesome to be able to sit down there and get some work done. It is now my favorite spot for business meetings.
Contrast this to paying $x/hr for a connection at Starbucks. I think that eventually many places like Starbucks will be offering access for free just to keep up.
There also seems to be a lot of community interest in providing access points in many public places. There are two places in the downtown area of my city where the city provides free wifi access. It's good for business and good for the community.
The cost of putting up an access point is pretty cheap. Coffee shops, hotels, restaurants, and other businesses will start to put them up as a way to attract customers. A lot of communities will be putting access points in public locations. There won't be any reason to pay. Businesses with the pay access will lose business to those who offer free access.
I use RoadRunner for my cable modem, and lately they have been pushing their WiFi service. Really haven't looked into it, (but I am pretty sure they just give you a modem with an antennae) Maybe I'll switch to wireless if I can hack it to pieces and make it Bluetooth compatible.
i ces/roadrunne r/rr_wireless.asp
Here's a link on it for people interested.
http://www.timewarneraustin.com/serv
I love Slashdot when the titles of articles contain obvious puns. Here's an even better title for this article:
Joltage Spreads Rolling Blackouts Across California As It Powers Down
Cyde Weys Musings - Scrutinizing the inscrutable
Your analogy when applied to the main subject at hand has a flaw. The key phrase is "On who's terms?"
In the grocery store example the store's profitability may be one of numbers, but it still attempts to do it on their own terms, not the suppliers[1].
If the Internet Providers were the one's participating in this scheme, then it would be on their terms, and there would be no questions. Because Jortage would be just another customer, with all that implies.
However businesses, and home customers were selling something on the "suppliers" terms, and that is more times than not, written in legal agreements (TOS,AUP) to not be OK.
[1] A background in negotiation,sociology, and psychology, with a smattering of economics, will help you understand what actually happens behind the scenes.
I thought for a second they were lowering the caffeine content of jolt. Yikes. What a nightmare, first diet Red Bull, now this??
I'm sick of hearing this, I have an ISP that is quite happy to have me sharing bandwidth. And I know of at least two other ISP's in the area that explicitly allow it under their TOS.
It's only the big companies used to having government sanctioned monopolies that think they can sign up everyone for $50 for home internet access plus $60 for mobile internet access, plus $40 for mobile phone access, plus $30 for home phone access, plus $60 for cable service, plus some other amount for using using any of these services, plus advertising, plus a media tax on your backup media.
you put it very well, much better than I could. kudos.
EOM
I, too, was a Joltage hotspot provider (and subscriber), and was pretty familiar with the company. As such, I think I can answer a few of the questions that have been posted about these guys:
WHY DIDN'T ANYONE KNOW ABOUT THEM?
Actually, they started off with quite a bit of industry buzz, having launched at Esther Dyson's PC Forum last year. In the beginning (check the articles) they were getting almost as much press as Boingo, which started about the same time. The difference, however, is that Boingo had Sky Dayton (of Earthlink fame) plus tens of millions of dollars to use for marketing. Joltage, in contrast, was a bunch of smart and experienced, but very underfunded, wireless geeks.
DID THEIR STUFF WORK?
Yeah, it actually worked really well. The free hotspot software could be downloaded from all the usual sites (or their website) and turned any PC with an access point into a part of the network. The back-end system was very slick from both the hotspot and user ends, and seemed to work without a hitch. When people used my hotspot, the next month I got a credit through PayPal.
DID THEY HAVE A PROBLEM WITH LEGAL BANDWIDTH RESALE?
Actually, no. They always insisted (and were pretty serious about) having any participating hotspot use legitimate, re-saleable bandwidth. From the very beginning they had a deal with Covad, and eventually they added support from Atlas, Eureka and other broadband providers who offered Joltage hotspot providers fully Joltage-usable DSL for under $50/month. I think they were talking to the other big guys about getting permission for residential users to use bandwidth for Joltage, but I guess those things take time...and they ran out.
WAS THIS THING DOOMED TO FAILURE?
Anyone's guess, but I don't think so...unless you're of the opinion that any pay-for-WiFi solution will fail. Cometa is launching with the goal of having a hotspot less than a ten minute drive from most people. In contrast, there are over 15,000 existing WLANS in Manhattan alone (as an example). Even a miniscule percentage of those (mostly commercial, and thus usually re-saleable) hotspots participating at no cost to themselves, would have resulted in by far the best WiFi footprint in town.
HOW CAN ANYTHING RELYING ON MOMS AND POPS WORK?
Good question, and that's where they probably fell down. While I think that eventually there will be enough critical mass for a truly organic network, in the near term there just wasn't enough of an overlap between the early adopters with access points, and people with enough entrepreneurial spirit to try to set up a commercial hotspot...even if it was really easy, which the Joltage solution was.
SO, WAS IT ALL MOMS AND POPS?
No, and that ultimately could have been Joltage's salvation...maybe. By the end they were concentrating on supporting WISPS who had a real business incentive to set up hotspots, and some of those were really professional. Check out Urban Hotspots, SpotWIFI, WiFi Spain, and others.
WERE THEY DOTCOM DREAMERS?
Maybe, but at least they had viable track records, a lot of skills, and dedication. Andrew Weinreich, the founder, was the guy behind SixDegrees, and several of the tech staff came out of Scient and other good shops. The board/angels were big names in the industry, but I guess just didn't have the cash to keep it going. One thing's for sure, they ran a lean shop. The CEO didn't take a salary and the whole staff worked almost for free, in the hopes that they would be paid back on a financing. But for a low-budget shop, they treated everyone well. They even went out classily, paying up the last charges they owed me as a provider, and actually refunding me the unused part of my monthly subscriber fee! Good guys.
SO WHAT HAPPENED?
I think this was a combination of (a) a market where no one at all is generating revenues, let alone making money, yet and therefore needs (b) venture capital, which I gather isn't too available these days. Combine this with Joltage's early focus on a grass-roots model of what you might call 'enlightened economic self-interest' in a market which just wasn't ready for it yet, and you end up with a noble but ultimately unsuccessful business. Ah well. I wish all those guys luck; while they were around they ran a really decent company.
Dear So & So:
It is with regret that I am writing to inform you that Joltage will be discontinuing its Wi-Fi subscriber and provider services effective at the end of this month. We will therefore no longer be able to support your operations as a venue for individuals to gain wireless access to the Internet.
Within the next several days we will be remitting to you any earned but unpaid revenue from previously billed subscriber sessions. From this point forward, however, we will no longer be billing subscribers for any future hotspot usage, and as such, we will no longer be accruing any revenues on your behalf. Your hotspot will now automatically enable free access by any former Joltage subscriber as well as new visitors. Please note that this is only a transitional phase, and that as of March 1, 2003, unless you take action, your hotspot will no longer permit Internet access sessions for wireless users.
If at this point you would like to open up your network to provide uncontrolled free to access to any visitors, simply uninstall the Joltage provider software on your host computer, by going to "Add/Remove Programs" in the Control Panel, and selecting Joltage for removal. Then reinstall your access point according to the manufacturer's directions.
Otherwise, to enable you to continue revenue-generating operations with the least possible disruption, I am enclosing a list of alternative back-end software and service providers, in the hope that at least some of their offerings will fit your needs.
Joltage was founded with the vision of offering individuals the opportunity to gain fast and inexpensive wireless Internet access almost anywhere, while providing a significant incentive to operators such as yourself to make wireless hotspots widely available. We still believe in that vision -- perhaps now, more than ever.
Unfortunately, it appears that it will take substantially longer than expected for the significant numbers of users we anticipated on such a network to materialize. And because of the difficult economy, we are no longer able to finance our operations as we had once hoped we would be able to.
All of us at Joltage appreciate your willingness to dream with us and hope that you are able to continue providing this valuable service to your customers.
With best wishes,
Andrew Weinreich
Founder & Chairman
Joltage
Yes, now continue the thought a little deeper. Obviously there ISPs aren't giving the coffee shop/public place free bandwith, so were's the money coming from. The business is passing the cost through what it sells. The public place is getting it through the taxes you pay. In other words those who have no need or desire for an Internet connection are funding in part those who do. A fairer system would be a system where those who are using it will pay for it, and those who aren't, don't. Sounds familiar? Ah the lengths gone too, to get "free". OPM.
IANATE (I Am Not A Telco Employee), but I have used their commercial services, so I know what a business line really is.
You're not old until regret takes the place of your dreams.
Paid-for WiFi hotspots are much too early in the market adoption curve to pay for themselves. We're missing two of the critical inputs: [1] masses of users willing to locate and pay for hotspots, and [2] a broadly accepted clearinghouse for WiFi subscribers so that each doesn't have to have a dozen memberships/accounts.
I was at iPass early on, when the world was filled with thousands of small ISPs covering their own small corners of the globe. Currently, iPass aggregates and manages more than 20,000 dial-up POPs and 1000+ WiFi hotspots from hundreds of providers. What we saw early in the cycle was that almost all ISPs were marginal or unprofitable They drew from very small local markets (under 1000 users). Primarily, they existed because the owner wanted to be an ISP, not in order to make real money. Most disappeared, were rolled up, or become higher-level VARs/integrators/ASPs.
I believe local hotspot providers look similar: coffee shops and retail locations that can't earn significant profit from WiFi, but are experimenting with it. Don't expect a huge network to appear organically from atoms of goodwill.
Eventually the big slow carriers rolled out nation-sized services. I don't expect that any of these are hugely profitable, but instead are viewed as a necessary part of a full product offering.
IMO, the Joltages and Boingos of the world will be Chapter 11 footnotes. With so few paid WiFi roamers or subscribers (note the distinction here versus "free"), early providers and aggregators will watch their capital leak away, and either exit or subsidize with other service revenue.
This year's big push toward cheap WiFi hardware will help, and some services may be viable next year. See my January screed on this WiFi, 3G and Ten Million Landlords. I sized the continental US in units of 802.11b coverage at 56,000 access points wide and 28,000 access points tall. (BTW , the newsletter is free.)
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like Microsoft." - Some AOL'er.
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