From: paulh@msen.com (Paul Haas)
Newsgroups: mi.misc
Subject: IP for home costs
Date: 28 Jan 1993 06:23:20 GMT
Organization: Msen, Inc. -- Ann Arbor, Michigan
NNTP-Posting-Host: garnet.msen.com
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emv@msen.com (Edward Vielmetti at Msen, Inc.) said in another thread:
> My vision for MI.ORG and the future of free Internet access in Michigan
> runs something like this.  Yes, free Internet - it might be slow and
> unreliable, but I think the current people using MI.ORG addresses can
> put together a net that costs about $1/mo/user, and based on the grex
				      ^^^^^^^^^^
> experience I think we know that level of service can be funded solely
> out of volunteer labor.  If we can get UUCP service this good at this
> low a cost no particular reason we can't have IP service too.

[True stuff about how to get IP addresses deleted.]

> Members (esp those running unix) build and configure dial up IP software,
> one or another of the dialup SLIP or PPP packages that are floating around
> than run under SunOS or 386BSD.  People learn about IP routing, demand
> dial IP links, etc.  Where there are enough bits flowing you nail up the
> line and run 24 hrs/day (thus also neatly bypassing the MI Bell call
> limits).  This will be work - not all of the IP software is as good as
> the commercial Morning Star PPP software - but it's all cheap or free.

The concept is good, your finances are off or your assumptions are
radically different from mine.

My assumptions:
  1. A phone line costs $12/month
  2. A PPP link has two ends
  3. A good modem costs at least $300.
  4. A three year old modem is not a good modem, so depreciate over three
     years.  $300/36 months, is $8/month.
  5. I'll pretend that we already own computers.
  6. Electricity costs $.10/kwh, the modems and stuff use 50 watts.
     0.05Kwatts * $.10/kwh * 24 hours * 30 days = $3.60 /month
     (It's higher if you include the CPU and monitor.)
 
So with these assumptions, a nailed up PPP connection costs $47.20 a
month.  I would be willing to pay that much for a continuous
connection, but it is a long way from $1/month/user.  Now, there are many
other ways of pushing bits; radio, laser, cable TV, coax, fiber,
twisted pairs, etc...  So, it all depends on how close you are and what
hardware is available.  I'm interested to hear what ways are actually in
use and how well they work.  (Hint, Ron tell us about your setup.)

One big cost that is not yet accounted for in this analysis, is the
connection to the rest of the Internet.  When I connect to the
internet, I do it through my employers, that is not an option for most
people, and I certainly can't allow other people to go through them.

I'm running ppp-pl6, I see over 250 ms per hop (according to ping) on
14.4 Kbps modems.  I wouldn't want to be more than two hops away from a
56k or faster internet connection.
--
Paul Haas
paulh@hamjudo.mi.org  (I will be moving within Michigan in the next
six to nine months, so I do not want a .mi.us domain, yet if ever.)
Claimer:
Oh, by the way, I'm a satisfied Msen customer.  I'm obviously
using an Msen shell account right now.  My employer also uses Msen
for their IP connection.  Msen is not the only IP provider in town,
just the cheapest.  Call ANS or Alternet for a quote.