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How To Avoid Misleading Pricing Scams Digital subscriber line is a breakthrough technology that allows users to connect to the Internet at speeds up to 50 times faster than ordinary dial up modem connections. While this is a promising technology, many firms are advertising blatantly misleading pricing, and are, in effect, using bait and switch tactics to acquire new customers.
DSL 101
DSL lines allow you to access the Internet at speeds of up to 1,500,000 bits per second (compare this to an average speed of 30,000 bits per second for regular modems). DSL technology works over existing telephone wiring, which is one of the reasons why it is so popular with the telephone companies. They simply install some new equipment at their central office and can offer DSL to anyone within about 3 miles of the facility. Other technologies require extensive redesign work for the existing phone wiring, an expensive proposition.
There are two forms of DSL in widespread use today: Symettric DSL (SDSL) and Asymmetric DSL (ADSL). The primary difference between these two types is their ability to carry data in upstream (from you to the outside world) and downstream (from the outside world to you) directions. SDSL can carry the same amount of data in both directions. ADSL delivers higher speed downstream service, and slower speed upstream service. (Since most users spend most of their time downloading files, i.e. web pages, ADSL makes sense since you can download pages faster, and notice the overall benefits more).
Common DSL Service Offerings
Internet service providers typically offer DSL in a variety of flavors. There are two primary factors they use to differentiate their service offerings:
- Speed
- Number of IP Addresses
A typical ISP will offer customers a choice of different connection speeds, usually from as low as 144,000 bits per second to as high as 1,500,000 bits per second. More bits per second equals more dollars. You will typically pay more for symettric DSL service compared to asymettric DSL service. (This is because SDSL users generally tend to be heavier network users than people who are casually surfing web pages).
The number of IP addresses is another factor in determining price. If you have a single home computer, then this is not a big deal. However, if you have a small office with 10 computers on a local area network (or want to set up a local area network), this is a very big deal. IP addresses are the Internet equivalent of a phone number. Each computer on a LAN is typically assigned its own unique IP address. (There are actually ways you can get a large number of computers to share the same IP address, but this is a technical matter outside the scope of this article. This approach also requires a dedicated computer called a proxy server). So, if you have 10 computers that you want to connect to the outside world all the time, you need to have 10 IP addresses if you want these machines to be visible to the outside world.
Internet service providers are using these two factors to create confusing pricing plans which underestimate the real cost of useful DSL service. For example, several ISPs are now advertising DSL service for under $50 per month, and are throwing the "50 times faster than dial up modems" figure. This is very misleading because, for 50 dollars, what you typically get is.
- Slow speed DSL service (no faster than 144,000 bits per second, about the same speed as an ISDN line)
- One IP address
- In many cases, the equipment is rigged to prevent you from connecting multiple computers to the same circuit
If you have a single home PC and are happy with this level of service, this is not a bad deal, but the DSL providers are setting consumers expectations way to high. Buyers think they'll be getting high speed (1,500,000 bits per second) service when they're really getting something on par with ISDN, an older technology that has been in widespread use for half a decade.
Realistic Expectations
If you are buying DSL for home use, we recommend that you look at ADSL, with a circuit speed of 384,000 bits per second downstream, and 128,000 bits per second upstream. For example, Pacific Bell is offering this class of service for a little over $100 per month. You also get multiple IP addresses with the service, so you can connect a LAN to your DSL line, and have several PCs or appliances sharing the connection.
If you are buying DSL for business use, we recommend either ADSL or SDSL, depending on what's available in your area. You should request at least 6 IP addresses for your DSL line, more if you have a LAN with many users. Expect to pay $200 to $400 per month for business class DSL service depending on the line speed. $200 per month will currently buy 384/384 SDSL service. $400 per month will buy you high speed (1,500,000 bits per second)service.
While this might sound expensive, DSL allows consumers to buy more service for essentially the same price as with older technology. We used to use ISDN to connect our office to the Internet. ISDN allows a maximum speed of 128,000 bits per second (slower than the slowest DSL service). We paid $175 per month for business class service from our ISP (24x7 connectivity). We also paid another $200 to $300 per month in local phone charges to Pacific Bell (ISDN is charged on a per minute use basis). So, on average we were paying $400 to $500 per month for this service. With DSL, we can bring the price down slightly while increasing connection speed nearly ten times.
So, anyway you look at it, DSL is an incredibly good deal compared to older methods of connecting to the Internet. Just be aware that Internet service providers are competing ruthlessly for customers and will say just about anything to get your business. Expect to pay between $175 to $400 per month for quality, business class DSL service, and between $50 to $100 per month for consumer class DSL service. If you're seeing prices substantially lower than these, look closely for hidden conditions, arbitrary limitations to the service, etc
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