ADSL a threat, claims CAIP

As detailed in our previous ADSL Report, the high-speed Internet Access service provides a lots of bang for the buck: 50 to 150 times faster than a 28.8 dial up modem for less than triple the price of a dial-up account. (BC Tel's Multimedia Gateway ADSL service costs $99 to install; service costs $64.95/mo. for 5 email accounts, 5 hours of dial-up access for roaming access, and 5 MB of web space for personal web pages.)

But the Toronto-based Canadian Association of Internet Providers ("CAIP") wants to put a stop to low-cost ADSL.

CAIP, on December 16, 1998 filed an application with the Canadian Radio-television and Telecommunications Commission on behalf of its independent members, seeking to put an end to what it views as unfair competition.

The CAIP submission asks that if Bell Canada or any of its affiliates wish to provide retail Internet access using ADSL technology, that such services be provided by Bell Canada on an in-house basis and at cost-based rates that have been filed with and approved by the Commission beforehand. CAIP is also seeking reasonable wholesale prices for these services.

"Independent members of CAIP are suffering serious and irreparable harm as a result of Bell's anti-competitive conduct in the retail market for ADSL-based Internet access," says John Nemanic, CAIP board member and Director of Access Issues. "The tariffed rates which CAIP's Independent ISP members must pay for Bell Canada's wholesale ADSL service make it impossible for them to compete with the retail prices offered by Bell. The result is that small ISPs are virtually blocked from participation in the high-speed Internet access market. CAIP is hopeful that the CRTC will intervene before the independent market is permanently crippled."

The Part VII Submission is available on the CAIP Web site at: http://www.caip.ca

CAIP <http://www.caip.ca> is Canada's national association of Internet service providers with a membership of over 125 ISPs located in nine provinces across Canada. Currently, CAIP estimates that its member firms provide over 80% of the Internet connections to Canadians at home, school and work.  CAIP is a frequent participant in CRTC regulatory proceedings of interest and relevance to its ISP member companies.

Meanwhile, Cable modem access services continue to fall in price, as the service, offered by Rogers, Shaw and other cable companies across the country, becomes increasingly available to Canadians. In the Vancouver area, the cost of cable modem service has fallen as low as $34.95 per month. While ADSL offers some advantages (greater speed, easier networkability), the low price of cable similarly spells trouble for the dial-up service providers. Will it be CAIP's next target?

One key difference between cable and ADSL is the way each service handles multiple machines. On an ADSL account, two (or more) machines can be connected to the Internet simply by substituting a hub (prices start at about $75) and standard Ethernet cables for the "crossover" cable supplied. (See the disclaimer below.)

Networking two or more PCs connected via Cable modem, meanwhile, can be a little trickier. Typically, you'll need to run a proxy server. It works by providing one IP Address for Multiple Computers -- in essence, all the internet service provider will see is the connected computer's IP. The other computers connect to the proxy server. Fortunately, tools such as the Spagetti Proxy server are available from www.download.com. Spagetti allows you a free 30-day trial and/or 400 connections till you have to restart your server. Registration is US$40.

Another good choice for Windows users is WinGate, a combination proxy server and firewall. It's available at www.wingate.net. Another way to share internet service between computers is to use 602 Software's US$29.95 602Pro INTERNET SERVER Lite.  (A 14-day demo is available at http://www.602pro.com/lite/lite&pro.html). Other proxy solutions for Intel-based PCs include winproxy and msproxy.

PC users with an old computer gathering dust should check out the US$70 turnkey solution at www.sharethenet.com. It requires a computer to be dedicated to the task of acting as a Gateway Server, but it runs well even on an old 386 or 486.

Mac users can use IPNetRouter from http://www.sustworks.com/. It supports an unlimited number of machines for US$90.

Linux users can use that operating system to perform a feat known as "IP Masquerading" to accomplish a similar result. Basically, it gives an IP address to another computer. Typically, the gateway computer (the one doing the masquerading) needs to have 2 Ethernet cards, one for the cable modem, and the other going to the other computer. This prevents the cable service from being able to detect the presence of the other computer. (Disclaimer time again.) Check out http://www.vortech.net/rrlinux/ for more info on this topic.

Please keep in mind: the above advice on networking computers connected to ADSL or cable modem services may be illegal as far as your service provider is concerned, since you're only paying for one connection. We do not recommend illegal activities. Disclaimer: neither the author nor Canada Computer Paper advise the use of more than one computer on an ADSL or cable modem connection, unless specifically allowed by your agreement with the service provider.

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