Dial-Up Internet Isn't Going Away--For Now

Here's a little update on the state of the diaup industry from our friends at PCWorld.com, enjoy!

Thomas William

VP Partner Solutions

Broadband in a Box

1302 Clear Springs Trace

Louisville Kentucky 40223

Direct: (502) 426.2067

Toll Free: (800) 761.9149

Fax: (502) 515.3710

Email: tomw@bbinabox.com

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Virtually every Internet service provider uses dial-up networking to connect individuals to the Internet. Most recognizable are the larger, national information services and ISPs. Companies such as America Online, EarthLink, AT&T WorldNet, and MSN have become household names in the past ten years, and offer nearly universal service in the United States (and often provide international access as well). Each of the big guns offers its own brand of interface, built on dial-up networking, with varying levels of customization and proprietary features.

But there are often a few gotchas if you use an information service's customized interface: Some limit the user's access to Internet resources that are not part of the service's offerings. America Online, for instance, boasts the greatest number of subscribers among ISPs and information services. AOL offers those subscribers a wide range of clubs, user groups, and file libraries. There's so much to do that many AOL subscribers know only how to use those features and services exclusively within AOL's borders, rendering them unable to "leave the nest," so to speak.

On the other hand, more and more subscribers would prefer to use such subscriptions only to connect to the Internet. You can, for instance, simply use AOL as an ISP, but few users do that.

Small ISPs Provide Big Service

Smaller, local ISPs frequently offer more competitive rates, less restrictive interfaces, and a different selection (and usually a higher standard) of service options. "Local," though, doesn't necessarily mean their use is geographically limited. Often they use the same "head-end" network, such as the GRIC Alliance, as the largest providers do, and this can give local ISPs nationwide (or even worldwide) access numbers. EarthLink and MSN, for example, use the same dialing network; so can the little ISPs with big aspirations.

There are free Internet service providers, too, which offer basic connections through their user interface. The trend has been for the free ISPs to serve up a lot of ads in that interface, and little or no tech support if something goes wrong. More recently, these services have begun charging fees for services.

Rosy Future for Dial-Up Networking

Dial-up networking is a mature technology; over the past few years, incremental technology improvements have improved performance, but not by a significant amount. The last major improvement in dial-up was the release of the V.90 standard, which allowed modems that used either of two previously incompatible standards to connect to each other. As a result, most modems are able to connect at or near their rated maximum of 56 kbps.

(The 56-kbps modem specification actually translates to a real-world cap of about 52 kbps, and a realistic maximum throughput averaging about 40 kbps. The quality of the copper phone wire and the phone jack being used, the distance from the user to the phone company's central office, and the Internet's and individual Web sites' level of traffic all factor into the apparent performance.)

A new standard, tentatively named V.92, promises to improve upstream rates by using pulse code modulation, a more efficient method of grabbing and packaging data for transmission. This standard also adds convenience features. With V.92, users who subscribe to a call-waiting service from their phone company will be able to initiate or take a voice call without losing an established data connection to the Internet--long the bane of analog modem users. Another V.92 feature, called QuickConnect, remembers handshake information between your modem and dial-up service, cutting the connection time almost in half.

With new compression technologies on the horizon that promise to improve performance by using a smaller share of the wire to transfer given data, and V.92's convenience features, it looks like the demise of dial-up networking, at least for now, has moved further out on the horizon.

Nathan Garcia is a freelance technology writer based in the San Francisco area and the host of On Computers, a radio call-in show that helps listeners fix computer problems.

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Dial-Up Networking 101

Millions of us have used a dial-up account to get online right? So do you know how it works? Do you really? Here is a very nicely written primer on how it all takes place. by our friends at: PCWorld.com

Thomas William

VP Partner Solutions

Broadband in a Box

1302 Clear Springs Trace

Louisville Kentucky 40223

Direct: (502) 426.2067

Toll Free: (800) 761.9149

Fax: (502) 515.3710

Email: tomw@bbinabox.comWe explain the method most people use to connect to the Internet.

Nathan Garcia, special to PCWorld.com

Dial-up networking: the set of protocols and software used to connect a computer to an Internet service provider, an online service, or a remote computer through an analog modem and POTS (plain old telephone system).

Dial-up networking is the most widely used type of computer connection to the Internet. By the end of 2000, over a quarter of a billion subscribers were dialing in to the Internet--more than four times the number of users of other popular access methods, namely broadband DSL, cable, and ISDN modems. Here are the facts you need to know:

• Dial-up networking uses a modem as the interface between a single PC and a network such as the Internet; the modems are typically capable of speeds up to 56 kbps.
• Dialing up with a modem is still the cheapest and most widely available way to connect to the Internet, but because it offers comparatively slow connection speeds, graphics-intensive Web sites can take a long time to load.
• The maximum speed at which you can download data using dial-up networking is limited by the telephone system's analog bandwidth, the line quality, and the Internet traffic load.
• Dial-up networking usually communicates with the ISP using the Point to Point Protocol standard.

While broadband services such as DSL, cable modems, and satellite Internet are rapidly becoming available to more areas around the nation, dial-up networking continues to grow. It's estimated that wireless connectivity will pose the biggest challenge to dial-up networking in terms of subscribers sometime in the future. But analysts predict that, as of the end of 2001, more than twice as many people will continue to use dial-up networking than will use broadband services to connect to the Internet. In 2003 the gap will close, but dial-up networking will still be the most popular method by one and one-half times.

What's in a Handshake?

Dial-up networking is the simplest way to connect to the Internet: You just connect over the phone line using your modem, once you've subscribed to an ISP. For the most part, the software tools you need come built into Windows; some ISPs, such as EarthLink, furnish a user interface that makes setup even easier. Whichever method is used, dial-up customers usually only need to enter a user name and password, as well as the ISP's phone number, into a dialog box. The dial-up networking software uses that information to make the connection with the ISP and does all the rest of the work. After the initial setup, all that most customers need to do to make a connection is double-click an icon.

When you initiate the process, dial-up networking first directs your modem to dial the ISP's phone number, which is answered by another modem at the other end. For a few seconds the modems send control signals back and forth to determine how fast each can connect. The familiar screeching you hear when your modem first connects is the sound of your modem and the ISP's modem harmonizing the connection and deciding on a speed to use.

Once the connection is established, your modem silences its internal speaker, and dial-up networking sends your user name and password to the ISP using a process called CHAP--the challenge handshake authentication protocol. At the ISP's end, a computer checks your user name and password against a database of active customers. Once the ISP authenticates your information, the dial-up networking status window disappears, and you are free to surf, check and send e-mail, download files, and so forth. The process can take anywhere from 30 seconds to 2 minutes to complete.

PPP: Slightly Slower, but More Fault-Tolerant

Dial-up networking also breaks down your data into chunks, encoding and packaging the data before it goes on its way.

Dial-up networking uses a method called PPP (Point to Point Protocol) to package data for transmission over phone lines. As with ethernet, the PPP data packet, often called a frame, includes several parts. There are beginning and ending flags (called "wrappers") that bound the packet. Just like ethernet packets, PPP frames contain wrapper upon wrapper. The wrappers help direct the data within the packet to its destination using different protocols, such as TCP/IP, and also determine the type of data compression used on the packet.

One important distinction between PPP frames and ethernet packets is the capacity of damaged PPP packets to be recovered using a process called the frame check sequence. A packet occasionally gets lost or damaged en route; when it arrives at its destination, a damaged ethernet packet gets thrown out and a request goes back to the computer that sent the packet to resend it--a very time-consuming process if you use a dial-up connection, which is much slower than broadband.

In contrast, one part of a PPP wrapper contains a chunk of data called the validation value, which is verified at the destination. In some cases, a damaged PPP frame can be restored through the validation value, so it does not need to be resent.

While this process saves valuable time that would otherwise be used to resend every damaged packet, PPP's error-recovery features tend to make PPP run a bit more slowly than the simpler protocols that lack such error correction. But the Internet is a dangerous place for a data packet; errors or other problems can cause dozens of packets to drop each second. In the long run, PPP is far better suited to use over the Internet than other, less stringent protocols, so it has survived and flourished.

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FairPoint Goes Wireless To Reach 'Last-Mile' Customers

According to the New York Times, Telcos and wireless providers are losing upwards to 30,000+ subscribers and prospects respectively a month to retail last mile providers. Those numbers are only going to go up. The Broadband in a Box white label wholesale solution can stem that tide, where you can compete and win with a lower latency and cost and higher uptime solution today. You might as well have subscribers left to upgrade to your terrestrial solutions right?

Thomas William

VP Partner Solutions

Broadband in a Box

1302 Clear Springs Trace

Louisville Kentucky 40223

Direct: (502) 426.2067

Toll Free: (800) 761.9149

Fax: (502) 515.3710

Email: tomw@bbinabox.com
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Posted: Jan 22, 2003

CHARLOTTE — Editor's note: Charlotte Beat is a regular feature on Wednesdays.FairPoint Communications is going into the "Wi-Fi" business.

Hoping to capitalize on one of the hottest growth sectors in telecommunications, the Charlotte-based operator of rural local exchange companies said Tuesday that it would install 802.11b Wi-Fi standard wireless equipment for 20 rural communities.

FairPoint, which was founded in 1991, now operates 29 RLECs across 18 states, including Georgia, Florida and Virginia.

"We are continually looking for ways to provide advanced services to our rural customers, services that otherwise are not available from other service providers because of their economic considerations," said Bob Ingram, senior vice president of operations and engineering for FairPoint, in a statement.

Wireless local area network services revenues are expected to total $2.8 billion in 2002, up from $2.1 billion in 2001, according to Dataquest. Some 26.5 million wireless LAN units are expected to be sold this year, up from 15.5 million units in 2002, and growth is projected to be strong through at least 2007, according to Dataquest.

Using the 802.11b wireless service will enable FairPoint to offer high-speed Internet and data services to business users and consumers without having to install fiber or upgrade copper plant for digital subscriber line (DSL) services.

Extending high-speed services the "last mile" has proved to be an expensive challenge, especially for RLECs which service less densely populated areas.

In North Carolina, for example, the Rural Internet Access Authority has used a variety of grants to foster expansion of wireless and other means of high-speed service where telecommunications companies had declined to expand or upgrade.

BellSouth, meanwhile, has launched a high-speed wireless trial in Daytona, FL.

FairPoint chose to license equipment from KeyOn Communications. KeyOn has patent-pending technology for wireless data and operates a citywide network in Las Vegas.

FairPoint did not identify the communities where the service would be offered, nor did it specify costs other than to say the Wi-Fi offering would be a "high quality, cost-effective method to receive broadband."

Jonathan Snyder, chief executive officer of KeyOn, told The Las Vegas Review-Journal that FairPoint would offer the service first in central Ohio, upstate New York, Maine and Florida.

Snyder said the licensing deal is the first for KeyOn, which has some 500 customers in Las Vegas. KeyOn has been offering the service for about three months. The service is priced at $24.95 a month plus $50 for installation.

According to its most recent published figures, FairPoint has 245,306 lines, 123 exchanges, and more than 1,100 employees.

The company has not yet released fourth quarter earnings. Through the third quarter 2002, FairPoint reported a 1.7 percent drop in revenues, to $174.3 million, but did improve earnings before interest, taxes, depreciation and amortization to $33.5 million, up 11.3 percent. For the first nine months of the year, EBITDA hit $100.4 million, up 7.2 percent.

Through Dec. 31, 2001, FairPoint reported revenues of $235 million, EBIDTA of $124 million, and assets of $849 million.

Eugene Johnson, one of the company's co-founders, took over as chief executive officer of FairPoint a year ago and recently was named chairman of the board. He was executive vice president of corporate development before taking over as CEO. Johnson, a graduate of the University of North Carolina Charlotte, is a board member of UNCC's foundation.

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