Want 12Mbits/sec for $21? Move to Japan.

gbjbaanb writes "Softbank, in Japan, has built a gigabit ethernet network to replace DSL over ATM, which costs peanuts to maintain and run. For $21 a month, Japanese users get 12Mb/sec, free VoIP (without quality loss) calls to users on the same network, (3c/min to New York), and DVD-quality movies. The company needs users to stay with the service for 15 months to break even, given that it is giving modems away for free."

Comments

Serious Question

[Raul654]

Given that info, I'd be more than willing to sign up for the requisite 15+ months. So why can't they do something like that here in the States? What's holding them back - red tape, technical issues?

Re:Serious Question

[wren337]

Existing infrastructure, profit margins, lack of competition...

Re:Serious Question

[Flabby Boohoo]

Read Cringley's column, he sums it all up quite nicely.

Bottom line is that the baby bells don't want to spend the money. And they don't want to share.

Re:Serious Question

[carlmenezes]

I think it's a combination of a lot of factors:

1) The Japanese are a people that seem to have an affinity for the latest gadgets and technology which is the reason a lot of really cool things show up first in Japan. Not sure if you can say the same about the average American.

2) I don't know how it works in Japan, but over here in the States, it seems that corporations are really out to milk the customer for all the green they can get. So I don't think it's not possible over here. I just think that instead of giving you 12Mb/Sec, they'd start off with maybe 10 for the first few months, then chop bandwidth based on average usage and drive the price up while all the time telling you they're actually making things better - basically what's already happening to broadband.

3) Also, if there was something like that over here, they would price it according to value. Let's face it : if people are willing to shell out approx $45 a month for cable/DSL, what would they pay for something like this? Answer : probably $100+ per month. Consequence : Nobody really buys it since the majority are not very tech oriented and really wouldn't see any justification to it.

4) Finally, you wanna bet whether the MPAA is going to sit idly by when something like this is going on? They'll probably turn the whole thing into some really expensive form of "PPV over IP" (pay per view over iP).

At the end of it all, look at the final price and ask yourself if you'd still go for it. And there you'd have the reason why it wouldn't work over here. If you boil it down to the basics, it's nothing but corporate greed.

Re:Serious Question

[superdan2k]

This may have been modded as Funny, and probably repeatedly so, but it's also very insightful. Certain things become more functional in an "overcrowded" situation -- things like structured high-bandwidth communications systems.

It's also fun to watch people being herded into the subways in Tokyo at rush hour. Provided you're not claustrophobic, that is.

Re:Serious Question

[KrispyKringle]

Actually, the monopolies exist on cable but not on telephone lines. The laws in regards to telephone lines, as I understand it, actually require the line owners to share the lines with other companies--originally with the purpose of enhancing telephone network inter-call-ability. Since these laws apply to DSL providors and the like, you can get, say, Earthlink DSL through Verizon lines.

In comparison, the cable TV companies were granted regional monopolies, which still apply to cable ISPs, so there is very little competition in that arena. Which is why DSL is more socially responsible than cable.

Re:Serious Question

[d2ksla]

Look at how densely packed Japan is. Look at the huge expanses of empty land in the states.

Sweden is the size of California, but has only a quarter (9 million) of the population. Yet the broadband prices are similar to Japan ($40/mo for 26/26 Mbit/s).

Thanks, Softbank!

[nacturation]

Now, thanks to thousands of vulnerable Windows boxes, I now have a combined total of 1644Mbps of bandwidth to DDoS sites with.

On a more serious note, the cool factor of this is outstanding, but I sure hope they're handing out firewall software when they hand out those free modems on the street.

Far reaching implications?

[noelp]

This sounds great. If I lived in Japan, I would be signing up asap.

However, I kind of feel this is just another step along a somewhat dangerous (maybe that is too strong a word, but bear with me) path.

The internet, as it was envisaged, is designed to be a system whereby a large chunk of it can get destroyed/removed and data can still flow around that gap. Packets take all sorts of routes to get from A to B. All very good stuff, and something I am sure everyone is more than familiar with.

So, a disaster of some description happens, and we can all still get most of what we want as a result of this clever system. But with increases in bandwith such as this, more and more content (some trivial, other very not so) is pushed to the edge of the network. One ISP goes awry now and a huge number of sites/content/services can just dissapear. These sites do not have multiple backbone connections etc etc. With bandwith such as discussed here, you can host a site for a pretty decent number of users. (Wont take much of a slashdotting...but never mind...)

If people continue to push/provide content and services from the very edge of the network, then the very point of this network seems to be defeated. There is a lot of crap out there which I would not miss, but there is also a lot of stuff out there that I would. God bless the google cache is all I can say.

Thoughts?

OK, here's the scoop on Yahoo! BB

[gpvillamil]

OK, I work in the telecoms field in Japan, and I know the Yahoo! BB infrastructure well. I asked them directly why they can offer 10x the speed at 1/2 the price, and this is the answer.

1) Different DSL encoding standard: they use a set of standards called Annex A, Annex C and Annex H to provide fast DSL over copper. (Incidentally, many of the DSL providers in Japan also provide 8 and 12 mbps service - this is a Japan specific point). Yahoo! BB IS a DSL service.

2) Low-cost all IP network: the back-end network is basically a single gigantic Layer 2 gigabit Ethernet LAN. There is no ATM, SONET, etc. any of that stuff. It all runs as IP over Ethernet. The network architecture is actually quite radical. Fiber links are rented from a variety of sources, at dirt cheap prices.

3) Regulatory support and low prices for access: the telecoms regulator, in a fit of pique, forced NTT (local telco) to offer access to the copper lines for less than $2 - dramatically lower than in other markets.

4) Extremely low cost operating model: customer support is only available via e-mail or web. You install your own equipment. (Incidentally, there are frequent complaints about Yahoo! cust serv, so they finally had to open a call center)

The offering is extremely clever. The DSL modem has an analog phone jack in the back into which you plug your existing phone, fax machine, etc. You continue to receive calls over your analog line, so your phone number does not change. Outgoing calls are checked by the DSL modem and routed over VoIP if that is cheaper. If the DSL modem fails, the analog port simply connnects straight through to the existing analog line.

There is no technical or geographical reason why the Yahoo! BB model can't be implemented in other places. They are using copper lines from the incumbent for last mile access, and a published standard. The real barrier is probably that in other markets the telcos are trying to squeeze more return out of outdated, expensive networks. They don't want to build out a back-end for 10x the current traffic using their existing high cost network model.