
Verizon has begun selling one of the dumbest machines I've ever seen, a "DSL modem," (their term), wireless router and cordless phone combination dubbed Verizon One.
Essentially this ties together the obsolete telephone network with the Internet Verizon is actually selling and tells customers it's the same thing. It pushes fancy PBX capabilities on residential customers who don't need them. (Just to make things a little better, it locks them into its cellular service, too.)
The FUD (Fear, Uncertainty and Doubt) can be easily seen in the phrase "DSL modem." DSL is a digital service. It doesn't need modulation or demodulation to trick an analog line into taking a digital connection, which is what a modem does. It is an oxymoron.
Dave Burstein wrote in to say this is a Westell device. Westell has a long history of making things on-demand for phone companies, so Verizon gets all the "credit" for this piece of nonsense.
What's ironic is I happen to know Verizon was talking to Netopia two years ago about a massive contract for DSL gateways that would have been far superior to this piece of nonsense. (Here's a 2001 press release, delivered in the early days of the relationship.) I have one of these gateways in my house now, a review unit. What would have made them powerful was a promised co-branded service providing full security to home users, saving them as much as $200/year on "security suites" from various software vendors. (There are currently no Netopia press releases, going back to 2002, referencing Verizon.)
More on what a truly clued-in person feels after the break.
Bob Frankston calls this part of Verizon's IOBI initiative, an attempt to sell mobile, fixed, and Internet service from the same device. It ties three unrelated, complex networks into one "simple" bundle, to which consumers are henceforth bound.
Frankston continues (and I concur):
This is the kind of FUD that makes it so hard to have a rational telecom policy.
The term "residential gateway" used to be an ATM cage (not to be confused with ATM machine but confusion, like fear, is policy) in the basement. Today this has been replaced by labeling the NAT/Router as the residential gateway and pretending that overpriced bundles make sense and that you need the phone company to infest your computer with stupid-ware (software written by people who break your machine by locking it down to their confused model of networking -- a major frustration for me after I'd simplified home networking only to find carriers bringing back old problems!)
To get a supposed price reduction I let RCN install their phone service but I got the installer to just tag the wire so I didn't waste time on inside installation. Carriers rolling trucks because it's their only reality. It's a lot more expensive than just giving me VoIP but that would destroy the illusion.
Just like pretending video bits are special seems like nothing more than an
accounting scam (as I pointed out in a recent post).
An even cleverer scam would be to use a single frequency detector and then
create the illusion that a "frequency" must be "owned" in order to avoid confusing that detector. It's hard to figure out a better way to control the marketplace and speech. Would anyone be so foolish as to fall for the scam? Naaah .. well, maybe ... especially if you say it's the way your grandfather did it. In those days you needed real guns but today kids do it with software and that's so much worse ...
Let me be clear. You don't need iobi. You don't need a "triple-play" that makes you dependent on one huge supplier for all your communication needs. That puts you under the vendor's control.
Even if it costs you more, it's vital that you as a consumer use multiple vendors for telecommunications. This is the only way you can have power, playing vendors off against one another.
Today's telecommunications competition isn't between vendors, but between consumers and vendors. Don't disarm yourself. And don't let yourself be disarmed by claims of savings.
1. Jesse Kopelman on August 18, 2005 07:08 PM writes...
I don't think I can support this whole bundling is evil perspective. Technology is all about convenience and as long as a bundled solution is more convenient than an unbundled solution, I'm all for it. In fact I would say bundling by large carriers is a good thing as it makes it easier for competators to come in with a more tightly focused single service solution for those who want it. As for whether a DSL "modem" is really a modem, I think it is. The information on your DSL line is certainly modulated, it just happens to be digitaly modulated. Finally, I take issue with you complaining about how this service "pushes fancy PBX capabilities on residential customers who don't need them . . . " That makes as much sense as the people who knocked the Mac 20 years ago because it pushed fancy GUI/WYSIWG features on casual users who didn't need them. Now, I hate Verizon as much as the next guy and Verizon One may actually be a stupid service, but I think you are grasping at straws here. There are much better things to knock Verizon about. At the top of my list is their consistent practice of redlining the rollout of any new service. Just once, I want to hear that Harlem or inner-city DC is going to be the first to get some new service.
Permalink to Comment2. Roy Yates on August 18, 2005 09:25 PM writes...
A DSL box is decidedly a modem. It takes a digital bit stream and transforms it (using a type of modulation more or less the same as OFDM) to a sequence of analog waveforms that are transmitted over the twisted pair channel. Similarly, it receives analog waveforms and demodulates them into a bit stream. Still, the combo probably is a stupid box.
Permalink to Comment3. W Sanders on August 26, 2005 01:00 PM writes...
I don't see what's so evil. Dana, a few months ago you were saying these kind of boxes were part of the "always on" future. Show us the prices! Or is Verizon blocking generic VoIP with the box?
For example - here in California SBC refuses to unbundle regular phone service and DSL. So we pay $17/mo for the 5 phone calls per month we make on the land line. (Ok, we get 911 and a line that works when the power is out, too.) But SBC reduced my DSL rate to $19/mo so the whole package still costs less than internet from Comcast, and $10/mo less than what my phone+DSL bill was 2 years ago. Is this evil? I doubt anyone can make money selling DSL service for less than $50/mo if you include the cost of maintaining the wired infrastructure. Comcast is rolling out new Internet/TV bundles for the TV-addicted masses all the time. There *is* healthy competition in this area, at least in California.
Permalink to Comment4. Jesse Kopelman on August 29, 2005 01:34 PM writes...
You can make plenty providing DSL for less than $50/month. The cost of maintaining the line is less than $1/month and the cost of providing the DSL service is $1 or $2/month. The cost of upgrading POTS to DSL is less than $200/customer, including the modem, if it is a self install. The cost of billing might be the biggest factor of all as paper billing costs about $3/month. If you go with online billing I'm sure it costs less than $1/month for significant volume. A company like SBC or verizon could charge $25/month for naked DSL and make a healthy profit.
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