1Gbps Internet Access For $70 in America? Sonic Says Yes
If Comcast’s 105Mbps service costs $199.95 per month (in select markets), then naturally 1Gbps service should cost around $2,000 a month right? Well according to scrappy independent ISP sonic.net, $69.99 sounds much more reasonable, and they plan to put their money where their mouth is. The company has committed to rolling out 1Gbps fiber service to around 700 homes in the Sebastopol California area, and will study the results over the next few months to prove that its possible to offer such a high tier of service for $70, and still remain profitable.
According to Dane Jasper, Sonic.net's CEO, "Honestly, only as those wrap up will we have a complete picture of the economic model". "But I believe that fast service for a low cost is possible."
Sonic.net has been around since 1994, but fist made national headlines when it partnered up with Google to roll out fiber service for Stanford University on the search engines dime. And while the ISP has a long history of standing up for consumers, this represents the first solo attempt by the indie ISP to go straight after users with anything faster than 40Mbps DSL.
Accomplishing this ambitious task will require the company to manually string its own fiber optic cable to homes along existing hydro poles, and monetize the costs over several years. Even if you don’t live in the Sebastopol area, we’ll be keeping our eyes on this one. Sonic’s CEO rightly points out that the US market is long overdue for a truly disruptive pricing model for broadband Internet, and hope is on the way.
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karenxiao
January 11, 2012 at 7:17pm
I am very enjoyed for this side. Its a nice topic. It help me very much to solve some problems. Its opportunity are so fantastic and working style so speedy. I think it may be help all of you. Thanks
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htyaoma
August 25, 2011 at 4:40am
This post has helped me with a term paper I am writing. Thank you for giving me another point of view on this topic. accounting
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pj02143
June 15, 2011 at 12:29pm
I would love to see this in my area. I pay more now for the fastest internet in my area which unfortunately is satellite.
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Zxeses
June 13, 2011 at 1:45pm
Thankfully Sonic.net has no data caps. As a long time customer and current Fusion subscriber, I can attest this service is reliable and fast.
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JoBlo
June 13, 2011 at 12:43pm
There is this whole idea behind "internet engineering". Big companies have business models in place that try to convince their customers that the internet is a consumable resource that needs to be dished out. This applies to ISP's and other communication companies, and cell providers etc.
The thing to remember with developing high Internet speeds is the cost per data transferred. It does cost money to keep power to the servers, and networking gear, but where I think ISP's (and cell phone providers) is not understanding that the current model is total garbage. They have built themselves into a corner with their models, and there really is no real solution to reslove it unless they want to risk huge infrastructure upgrades. Being that the big players are public companies, it is impossible for them to justify the "chance" of doing something that the customers actually want, over forcing what they want onto the customers. It's politics.
fiber costs less to maintain, and has way less stability problems under load over traditional copper lines. So with this information, it is more cost effective to run fiber from day to day over copper, and since the physical size of fiber over the raising prices of the less efficient high power requirements to maintain copper networks, you get more bang for the buck traffic wise per same physical space. The logistical point from actually moving everything to fiber is the cost to install it. I think Sonic has the right idea behind what they are doing. It will cost them upfront to upgrade the infrastructure, but there is such a huge void in ISP competition right now, that people will flock to what they have to offer. Sonic also doesn't have huge internal political problems to deal with like the big ISP's do.
It would be very interesting to see the cost of running current high cost copper lines, against the cost of installing much faster and reliable fiber, which has a fraction of the physical power requirements to maintain, over say, a 5-10 year projection in high density locations.
With the work I do online, I am seriously considering moving to a location that has better internet over my craptastic Comcast connection that bogs down in the late afternoon like rush hour traffic.
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hador_nyc
June 13, 2011 at 10:03am
I CALL OUT THIS CANADIAN. They are called telephone poles in America, and more importatnly California where this is about.
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compro01
June 14, 2011 at 9:14am
A "hydro pole" is a POWER pole, not a telephone pole, though they may carry both.
The hydro naming is a result of electric companies like BC Hydro, which are so named as they get (or did get at some time) most of their generation from hydroelectric dams.
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Neufeldt2002
June 13, 2011 at 10:18am
I am Canadian, and I use Telephone Poles all the time. Everyone I know uses the Telephone Pole term as well.
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Marthian
June 12, 2011 at 9:23pm
Sure there's faster internet services available, but I'm worried about caps.
Right around my place, Cableone offers no cap and 10mbps and then 50gb cap and 50mbps.
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Holly Golightly
June 12, 2011 at 8:33pm
Okay, for a second, I thought they meant Sevastopol Ukraine. There is even a Saint Petersburg Florida, which has the same name for a city in Russia. Pretty interesting.
Back to the subject. Companies like Sonic need to be everywhere. I love it when a company stands for their consumers, and not the dollars. Of course, they can still be profitable, even at $50 a month. As long as they keep getting more, and more customers, they should be fine.
I think if they want to be able to generate the quickest profit, they need to aim at establishing a network in more densly-populated areas. Just about any major city will do. Hopefully they can get every single resident in Sebastopol to sign up. Generate more profit, expand, repeat.
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duncansil
June 12, 2011 at 7:09pm
Anyone remember when it cost over $5000 to build a decent computer, now done for 1/5 that at 10 times the performace? The same is about to happen to broadband, if competition is allowed to flourish.
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BonzTM
June 12, 2011 at 8:00pm
"if competition is allowed to flourish."
That's the trick. In the current situation, competition is choked. Monopolies/Duopolies run almost every region in the United States. There is no such thing as ISP competition anymore. Why it's allowed is beyond me. I thought there were laws in place to abolish such things.
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Caboose
June 13, 2011 at 1:06pm
Companies like Microsoft had to break up their monopolies and yet ComCrap and the like are allowed to flourish...
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Markitzero
June 12, 2011 at 6:29pm
were i live i california the only landline internet that you can get is dialup and at minimum $80 with phone and ISP eaither thtat or wireless connection and 3 only satellite, 3G, WISP. Satellite and WISP can be very expensive likw WISP can be over $120 and 3G were I am are saturated and i get under 30KB/s and alot of time it go under 15KB/s on 3G. Were I live it is a monopoly for broadband and verizon is the only one and they dont want to upgrade for more broadband so they only offer is dialup
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triplemonitordude
June 12, 2011 at 4:47pm
In Chattanooga, TN you can get 1gb/s for $350 a month through EPB. It was the first in the USA to offer it. I'm on their lowest package, and I get up to 30 mb/s up and down.
If your curious...
https://epbfi.com/you-pick/#/fi-speed-internet-100
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triplemonitordude
June 12, 2011 at 4:50pm
BTW, since EPB's lowest package is the 30mb/s and its cheaper than Comcast, Comcast had to increase the downloads for basic packages from 8mb/s to 25mb/s to compete.
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BonzTM
June 12, 2011 at 8:02pm
Even though I don't live in that area... I've longed to have EPB Fiber. They are turning a profit, making people happy, and forcing the local Telco/Cableco's to actually compete. For far too long there has been no competition. Without competition, companies have no reason to move forward or lower prices.
Good for EPB.
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Brock Kane
June 12, 2011 at 4:42pm
Well, there is Hope, right? We can't give up on this, and let Comcrap monopolize the broadband world, while raping us for all we're worth!
You Go Sonic!
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Cooketh
June 12, 2011 at 2:22pm
Offering 1Gbps to 700 homes is quite easy. It gets more expensive and complex when you look at the 15-20 million subscriber mark. This isn't some super holy bold move sonic is making. Known fact, smaller subcriber base --> less cost more speed.
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thunderclap82
June 12, 2011 at 4:19pm
That's why countries like Japan and China can offer 1Gbps for $20-$30 a month. Oh wait...
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sean.h.freeman
June 13, 2011 at 9:22am
Hahaha... It's not quite THAT cheap! But I do love it, can't imagine what I'd do if I even wound up back in the States dealing with that BS. Truth be told, this deal actually matches up exactly with the offerings here in Japan. Awesome Sonic, ganbatte!
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Slurpy
June 12, 2011 at 2:55pm
What? No, it's when you go large that you can cut costs, unify hardware and make a profit. Small startups always bleed money.
Another known fact: Comcast made $4B in PROFIT last year off $40B in revenue, despite bleeding through the ass through the NBC takeover - they can afford to spend a bit more on network upgrades.
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kixofmyg0t
June 12, 2011 at 1:14pm
Comcast and other ISP's will bitch to law makers about this. Expect Sonic to go out of bussiness shorty after from the BS red tape and fine's and fee's brought up by the other ISP's
It's a nice thought but no one will get rich off of this. If no one make's huge million dollar profits then it gets buried.
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