Makes You Sick
While the cost of residential DSL internet access has fallen in Bermuda in recent months, it still can't compare with what's available elsewhere in the world.
On Tuesday, in the UK, Internet Service Provider UK Online announced that it was launching a new 8 megabit service, for a measly £39.99 ($72) per month. In comparison, here in Bermuda we're paying more than that for a 256 kilobit service - 16 times slower - with no prospect of an 8 megabit service at any price in the forseeable future.
Makes you sick.
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Scale of economies....is the simple answer--the volume of a three hundred million people market is always going to be cheaper than a market of sixty thousand. Can you reason at all? ^..^ GPO
Posted by big bad wolf on 18.11.04 at 08:25
More competative pricing is on its way with new players coming into the fray. There is a rumour that someone wants to offer island wide true wireless(non-proprietary)at T1 capability(is that even possible?) Not sure what that would cost, but imagine the inpact on how we do things.
Posted by Slowhand on 18.11.04 at 08:54
Graeme - I understand and accept that things are generally more expensive in Bermuda because of its size.
But it's not always the case. The price of china and crystal is often touted as being lower than that in the US. The price of Ralph Lauren shirts is lower than in the UK. And even for those things that are more expensive, you still need to ask: how much more expensive is reasonable?
In the case of 8 megabit internet access you can't even compare prices because 8 megabit isn't even available here. Hell, neither is 1 megabit, and they've had that for years in the UK.
Hopefully that may change if Cablevision and WOW start offering internet access too.
Posted by The Limey on 18.11.04 at 09:14
I've just spent some time in New York, where DSL ten times faster than my connection here costs $30 a month. I understand that the economies offered by a big market must affect the price to some degree - but milk here doesn't cost that much more than it does in New York, neither does cable TV. What's magic about DSL?
Posted by Pondblogger on 18.11.04 at 09:20
In one grocery store they are selling a toilet paper role for $2.69 which in Bermuda is not the worst price, but the gert big 99cent "suggested retail price" on the package bugs the heck outta me!
I've been in retail for a while, so I like to think I have a good grasp on the reasonings for our pricing. Due to our 'unique' isolation, you live with the monopoly that some companies have on their goods and services. But it galls me when, if competition comes in with way lower pricing, they are able to drop their pricing "all of a sudden". Phone services being one area that has benefited. But how long were we ripped off?
Posted by Slowhand on 18.11.04 at 09:55
I understand the cost of fibre the ISPs are required to pay to get "off-island" is quite high. Perhaps this contributes to the relatively large cost differences between Bermuda and elsewhere.
For comprative purposes does anyone have any information regarding DSL/Cable modem pricing for our Caribbean neighbors?
Posted by Point Perspective on 18.11.04 at 11:25
Local phone service is still a rip off... $89/$99 for a phone line to your house these days??? I mean come on. They don't lay any new cable to your house, they simply flick a switch at the parish exchange... Albeit they layed cable from there to their central servers, but come on... we are such a small area that the amount of cable they laid can't cost that much!
Chech out the BTC Tariff Rates guide, page 50 for more info.
http://www.btc.bm/docs/TariffRates_20040301.zip
Posted by Somers on 18.11.04 at 11:54
Why don't you unhappy bunch get together and form a Company and deliver faster DSL...you are already the fastest moaners!!! Why is this more expensive....Why is that going on !?! Thats it a new rap group "The Moaners!" No Donna Summer's covers Guys! I'm sure you guys will be off the hook! ^..^ Heah I'm rich , I'm spoilt, and cry when I want to !! Heah I'm rich I'm spoilt and all want to do is rap my Moan!!! Wolfy and the Moaners
Posted by big bad wolf on 18.11.04 at 12:44
Sorry Somers, I was only refering to the long distance rates. I'll agree with you on your point. Having to pay their monthly price for DSL access...... there has got to be better pricing. The infrastructure in place is way behind the times, with piecemeal upgrades, ISP's are restricted to what equipment they can use for DSL, BTC has us all by the short and curlies.
Posted by Slowhand on 18.11.04 at 12:45
Wolfy is moaning about moaning...??
Posted by Slowhand on 18.11.04 at 12:47
Slowhand....grrr...Wolves are strictly in the howling business!!! Hooorrrrrooo! that is unless I get the chance to sink my teeth into your ass!! ^..^ Bitem Wolves!! Sic um!
Posted by big bad wolf on 18.11.04 at 13:04
Comparative pricing: in Cayman, C&W offers 256 ADSL for 79 KY dollars month - that's around 94 BD dollars. The same package from C&W in Bermuda costs 79 bucks a month. The same package from Batelco in Bahamas costs around 300 bucks a month.
Posted by Tiger Bay on 18.11.04 at 13:41
Tiger thanks for your info....gives a bigger picture of the issue in other small islands...If there is a market for cheaper DSL in Bda the market will eventually push it that way---Thanks for your reasoned imput ^..^
Posted by Graeme Outerbridge on 18.11.04 at 14:03
"competative pricing is on its way with new players coming into the fray"
New players or new services from existing players? It would be controversial if new licenses were to be issued; it's already a pretty tight fit with the existing 6 ISPs.
Posted by Tiger Bay on 18.11.04 at 18:33
For those of you who haven’t quite grasped the concept of capitalism, let me summarise.
The price of a good or service has no relationship at all to the cost of provision or manufacture. The price of toilet roll is not the cost of manufacture plus the cost of distribution plus a reasonable profit. It’s the maximum possible that the seller can get away with charging before so many people choose not to buy that it starts reducing total profits. If this happens to be ten times the cost of provision, so be it. If it turns out to be less than the cost of provision, then they just don’t make toilet roll at all.
For those of you who have a problem with this system, the list of countries you could move to is getting quite short.
Posted by Sunil on 18.11.04 at 18:51
<"Slowhand....grrr...Wolves are strictly in the howling business!!! Hooorrrrrooo! that is unless I get the chance to sink my teeth into your ass!! ^..^ Bitem Wolves!! Sic um!">
hey "wolfy" why dont you mature up a little. How old are 30-40? seems to me more like 10 or 13.
Posted by lil red riding hood on 18.11.04 at 21:47
Heah Lil red riding hood...in my version of the story you get eaten!!! Age means nothing unless you are dead....So try sixteen again if you liked it back then....Mature ! strictly for wines....Humans use it an attempt to control social groups ect ect....So stay out of my woods girl and remember the moon is waxing. Long live the pack... ^..^
Posted by big bad wolf on 18.11.04 at 23:21
Lil Red,
Keep going.... 30-40 was a little off. If you leave him alone he yaps at someone elses heels.
As for sinking his teeth in my ass..... he'll need to learn to ask nicely, or i'll not let him.
Bad boy! Bad! Sit!
Posted by Slowhand on 19.11.04 at 06:57
Slowhand it makes me sick that you would guide Little Red down the wrong path and away from fast DSL. Its not your place to guess numbers but then you are moving a little slow. Look on the biting thing maybe we could hook up a web cam and stream it to Wolf.com and make some money.? But you know we need faster DSL in Bermuda if I am ever going to build Wolf.com into the artistic inter active hyper speed site that my vision requires. Meanwhile on the science front Isnt incredible about the new Ram jet speed record....looks like the commute to Hamilton could be as quick a blink....Anyway somethings are getting faster. Slowhand are you getting left behind? I hope not as one thing is certain you have a quick mind....Time for prey later ^..^
Posted by big bad wolf on 19.11.04 at 07:56
Wolfy,
I don't see where I was leading Lil Red away from fast DSL. I have it myself and I want faster. Not sure who would be against it at all.... I'm all for progress and can see far enough ahead to determine the great potential.
I recall a few years back, having a discussion with a certain photographer about the then new Digital photography inovations, and the great potential it had. The well known and famous photographer then told me that Digital could never touch Film and that he would stick with his trusty film camera. I now have heard, straight from the wolf's mouth, as it were, that he has since which switched to digital "...ages ago---Full Monty" Hmmmm.
Posted by Slowhand on 19.11.04 at 09:15
Slow hand at the time I was correct...Film is still great and a simple 35mm film has about25 to 35 mega bits of visual information....it is only in the last two years that the conversion has made any sense price wise.....still have all my slides from35 years of shooting---new challenges with file management and long time storage as cds quickly degrade....like everything on our planet the future of photography is fragile....but as I look billions years ahead I know that my ego and little light etchings will be swept aside...my best artwork are my twins and Ali cat my daughter...somehow thats were the essence of me and the life force of their mothers combine to pass the life torch up....For a brief spark of time it resides in me and I'll fight to keep that fire fly of creativity in me until the last breath---The most important art is drawn on the canvas of your life....So mystery hand the Osprey is back and I soar with them. I shoot with cannons...have three film backs and one digital camera...plus I'm going backwards have a 1000 astract paintings to do....So I'll be putting my paw in paint....Film has its own personality and will remain an artistic medium just like platinium printing....so yes the quality is here in digital...good forward vision but film at the time I talked to you was far superior ...so there you have it...getting ready for Full Moon so got to go to howling practise.... Always the Wolf Now hold that Smile "click!"
Posted by big bad wolf on 19.11.04 at 09:37
But you can only get the 8Mb connection if you live within 2Km of the local 'phone exchange where UK Online have installed their equipment, under the Local Loop Unbundling scheme.
I get a 1Mb pipe from UK's BT Openworld for £29.99 sterling, with no limits on usage.
Many ISP's in the UK offering cheaper DSL are putting restrictions on how much you can download during a month. Take Wanadoo for example - three options ranging from £17.99 to £27.99 all at 1Mb, but restrictions of 2GB, 6GB or 30GB per month usage allowance.
Posted by Liam on 19.11.04 at 11:46
If people could actually lobby the .gov to make BTC change their rates then maybe the price could actually be reasonable. In regards to bandwidth however, the prices or performance will never reach those of large land based countries. Why? Well there is simply not enough bandwidth that flows to this island to sustain 10,000+ homes at 3-8 mbit. With only two carriers (one having a T3 and the other a couple fibre loops) there simply not enough bandwidth to support a large network at this speed. I guess somebody should try and put a satellite up and see if they can get starband from the u.s. that might be an alternative solution?
Posted by The Real Deal on 22.11.04 at 13:52
Maybe some overseas company could make Bermuda a hub for undersea communications cables.
Posted by Steve on 22.11.04 at 16:53
Bermuda is a hub for international Cables. We have two cables going to Brazil, one remains to the US and another links to a cable between the US and the UK
Posted by jake on 22.11.04 at 17:12
Jake, the very first undersea cable was laid between Bermuda and Nova Scotia (that's in Canada)en route to Ireland.
Bermuda is considered a 'splice' point for undersea cables, it is not a hub....though it could have been.
A number of years ago, some company (I forgot who)tried to set up shop in Bermuda and make it a true communications Hub...or course Government would not allow this. This company now resides in Ireland.
Posted by Steve on 22.11.04 at 20:04
I think there was talk of Global Crossing, but they wanted local rights as well which would have driven down the economics of C&W and TBI who had been given assurances prior to their $50m cable that there would be no others so as to allow a justifiable rate of return.
TBI was bought by Gloablnet, itself bought by 360 Networks who planned out the Brazil link which was done. In 360's bankruptcy the brazillian/latin american cable piece was sold and the TBI interface was itself sold to a Private Equity group in NY.
I am pretty sure that is where it stands now.
Posted by jake on 22.11.04 at 20:20
While I appreciate Sunil's comments about competitive pricing, and Slowhand's comments about the isolated, captive audience here, I have to refer to a recent childrens' debate about the future of Bermuda, and their prevailing view being that eCommerce could be the future of Bermuda.
Well, not at these prices, it won't! The missing part of a free market here is pricing that stimulates growth of the market. Singapore is a good comparison: it's a small market, yet with govt-subsidised bandwidth (initially), has over 90% internet saturation.
Think what Bermuda could accomplish with that level of internet access. Broader IT literacy, a global hotbed of eCommerce (which helps to attract investment), and, at the more mundane level, potentially more tax revenue for the govt as locals buy more stuff from abroad.
Posted by Taggy on 24.11.04 at 12:07
If we had the millions of citizens that Singapore has and a Lee Kuan Yew style leader we would have greater efficiency, but probably at the cost of social freedoms.
To have both a market and an arguably insightful, if somewhat right wing, leader would certainly create a very different Bermuda. From a drugs perspective, we would certainly have less. From a freedom perspective, the same.
It really depends on what you are willing to pay as a society for the right to be free.
Posted by jake on 24.11.04 at 12:16
Anybody else been getting really slow internet access from Logic over the last two days?
Posted by Fornicator on 22.02.05 at 19:26
British Telecom are upgrading all of their customers to 2Meg service tomorrow free of charge. Nice.
Posted by hotspur on 21.07.05 at 23:09
Just to make you all feel sicker...they are nearing completion of new technology to increase broadband (DSL/Cable) to 100Megabits looking to be released next year to the public.....
Man BTC, CableVision and ALL of the ISP's need to get their crap together.....
It's amazing how they say that they are giving us the best price they can, however as soon as one of them drops $10 down, they all do!
I don't know about you, but as a Bermudian, I'm getting tired of paying such high prices. At the very least they can include some complimentary KY Jelly as they screw you with the prices.....
Posted by Full Fullish on 22.07.05 at 10:18
and more drunk lesbian midgets please.
Posted by Tiger Bay on 22.07.05 at 10:34
I see BTC are running “give DSL this Christmas” ads in the papers. How about BTC give us all a real present and stop charging us this trumped-up $89 “access” charge which makes DSL services in Bermuda one of the most expensive on the planet? You don’t see Telco’s anywhere else hitting up customers for this.
Bah bleddy humbug.
Posted by hotspur on 07.12.05 at 14:41