Sonic.net CEO Blog

Next generation product pricing

August 6, 2008 – 11:12 pm

Fusion Bundle Logo Concept

As discussed previously, we have been working for some time toward the launch of new next generation products. As we get nearer deployment, some of the details are firming up.

First, bundling. This is a hot topic – some customers really like bundles, and some really do not. We believe in providing as many options as we can, so our next generation products will be available both with and without other services bundled. Of note, you do NOT need to have a voice telephone service for these products, and in fact at this point our initial offering does not include voice. The voice offering is likely to arrive sometime late this year.

Second, a name. Our current tentative name for the family of products is “Fusion”. Maybe that’s “Sonic.net Fusion Broadband Internet”, or “Fusion: Next Generation Products”, etc – it’s a working concept at this point. The Fusion concept encompasses all of the products that will be available. If we stick with this name, the product is likely to have an atom logo, where each electron in orbit represents an additional bundled product. Opt for broadband only, or add in voice, TV, or mobile. Each adds a ring to the orbit.

Finally and most important, pricing. Here are the initial launch products and prices. Note that these are standalone, delivered on a dedicated copper pair, so unlike today’s DSL, you don’t need to have a voice line and associated costs.

(Note, pricing updated and current as of 8/26/2009, reductions noted with strikethrough. -DJ)

Residential locations, dynamic IP:

1.5Mbps/1Mbps $35/mo
3Mbps/1Mbps $40/mo
6Mbps/1Mbps $45/mo
10 12Mbps/1Mbps $65/mo $50/mo
18Mbps/1Mbps $80/mo $55/mo

Residential locations, 8 static IPs:

1.5Mbps/1Mbps $55/mo
3Mbps/1Mbps $60/mo
6Mbps/1Mbps $70/mo
10 12Mbps/1Mbps $90/mo $75/mo
18Mbps/1Mbps $105/mo $80/mo

Business locations, dynamic IP:

1.5Mbps/1Mbps $45/mo
3Mbps/1Mbps $50/mo
6Mbps/1Mbps $70/mo $60/mo
10 12Mbps/1Mbps $90/mo $70/mo
18Mbps/1Mbps $105/mo $80/mo

Business locations, 8 static IPs:

1.5Mbps/1Mbps $55/mo
3Mbps/1Mbps $60/mo
6Mbps/1Mbps $80/mo $75/mo
10 12Mbps/1Mbps $100/mo $85/mo
18Mbps/1Mbps $115/mo $100/mo

Bundling offers the opportunity to drive costs downward – for example, adding voice service (when available) reduces the monthly cost of both products by a combined total of $20/mo. Adding television saves another $10/mo. At this time, bundle savings for adding mobile have not been set.

Product speeds are tiered based upon the capabilities of the loop itself. So for example, the max downstream speed of the 6/1Mbps product is between 4-6Mbps, the 10/1 between 7-10Mbps, 18/1, 11-18Mbps. Maximum speed is based upon the line’s electrical capability to carry ADSL2+ data. This rate of speed will be faster than legacy ADSL1 would be for the same CO based loop.

For customers near downtown Santa Rosa, these products will be available in just a couple weeks. About ten additional cities plus expanded Santa Rosa coverage will arrive in the coming months.

Oh, and yes, the free clip art atom that I’ve used here has one too many electrons in orbit. The max would be four. Broadband, voice, TV and mobile.

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42 Responses to “Next generation product pricing”
Fusion Broadband Internet… in this crazy day and age of NSA/ATT partnerships, is FBI really the best acronym to use?

By ADub on Aug 7, 2008
Hey Dane, what about folks who can only get ADSL1 service? Will there be any of these other products (voice, TV, or mobile) offered for them as well? Obviously TV if offered wouldn’t be over an ADSL1 line…

By Tony on Aug 7, 2008
Thanks, but I’ve switched both my residential and business DSL from Sonic to Comcast. I wanted faster upload speed and got it. I’m sorry you guys have to work with AT&T, but you guys are not keeping up with customer demand. 1 Mbps? You serious? LOL

By Sun on Aug 8, 2008
We will be offering bundled television service in some areas along with traditional ATT DSL. Home and business voice will be exclusive to the new network.

By Dane Jasper on Aug 9, 2008
Looking forward to seeing this new service in San Jose. I love Sonic.net and that I can get 8 static IP addresses.

By Marc on Aug 12, 2008
Sun, regarding your comments about 1Mbps outbound.

As a CLEC, we are not using AT&T’s network for these new products. This opens the door to lots of exciting things, and today’s products are just the beginning.

The two items that will address your goals for more outbound are ADSL2+ Annex M, and ADSL2+ pair bonding. Click for outside links to some details. Both of these technologies offer additional speed, and are part of our product road map.

Annex M allows for greater upstream on a loop, basically shifting the break between downstream and upstream. From Wiki: “The main difference between this specification and ITU G.992.5 (ADSL2+) is that the upstream/downstream frequency split has been shifted from 138kHz up to 276kHz, allowing upstream bandwidth to be increased from 1 Mbit/s to 3.5 Mbit/s, with a corresponding decrease in download bandwidth.”

Pair bonding is even more exciting, as it allows for bonding two or more pairs – and it can be combined with Annex M. Note that while the specification allows for 32 pairs bonded (500Mbps/30Mbps anyone?), I expect residential CPE and economics to drive two pair as the typical bonded offering.

You can combine Annex M with pair bonding. So, a conservative example would be a pair of loops running 15/2.5 each, bonded and delivering 30Mbps/5Mbps to the customer premise. I think that would stack up real well to what you’ve got from Comcast today (particularly against any short term “boost” shenanigans or potential prime time congestion problems.)

I’m sure we’ll see products like this, as competitive pressures ramp up, CPE matures, etc. I do believe that copper loops have a lot of potential going forward, and that it will be a great race to watch as a customer.

-Dane

By Dane Jasper on Aug 13, 2008
Hey Dane, can you name the “ten additional cities”? And/or give an ETA for Berkeley ADSL2?

thanks!

By Jon on Aug 14, 2008
Jon, here’s the CO list:

SNRSCA01 SNRSCA11 PTLMCA01 SBSTCA11 HLBGCA11 WNDSCA11 RTPKCA11 FSVLCA11 BKLYCA01 ALBYCA11 SNFCCA01 SNFCCA21 SNFCCA14 SNFCCA04 SNFCCA05 SNFCCA06 SNFCCA12 SNFCCA13 SNFCCA17 SCRMCA01 Santa Rosa 01
Santa Rosa 11
Petaluma
Sebastopol
Healdsburg
Windsor
Rohnert Park
Forestville
Berkeley 01
Albany 11
San Francisco 01
San Francisco 21
San Francisco 14
San Francisco 04
San Francisco 05
San Francisco 06
San Francisco 12
San Francisco 13
San Francisco 17
Sacramento 01

By Dane Jasper on Aug 14, 2008
Thanks, Dane!

Looks like I’m actually tied to the Albany CO (510-558). Please keep us posted as your deployment dates come into better focus!

cheers,
jon

By Jon on Aug 14, 2008
Sounds like a good product. I’m on the 650-968 exchange in Mountain View, and would get the 10/1 dynamic option today were it available. I’ve been on 3m/512k ADSL for several years and would love to get a faster connection.

By Dave on Aug 15, 2008
I’m 2700 feet from SNRSCA11 (peek at DSLR’s Sonic speedtest data ) I also don’t like having to buy that landline I don’t use. Two of three reasons that I had been drooling like a St Bernard dog over the next-gen services. Reason three was that I pay more attention to UPLOAD speed than download, as I find myself too often “phoning home” for a project or piece of software. Some quick math:

Up: Down: U/D:
512 3000 0.17
768 6000 0.13
1000 18000 0.06 “WTF?”

I had extrapolated 6M/768 and 3M/512 out to 18/2.7, forgetting that I read “vanilla” ADSL2+ “maxes” at 24/1, and was saddeded to see that all $35 gets me is the ability to continue to brag about having the fastest DSL in town.

If I could choose betwen 18/1 and 6/2 for my $105, I’d consider the 6/2 a “no-brainer”. The committe that wrote the ADSL2+ standard must have heard me thinking:

“Annex version M – Increased Upload speeds”
Upstream/downstream frequency split shifted from 138 kHz up to 276 kHz, max upstream increased from 1Mbps to 2Mbps.

Can you offer that? please

While I’m metioning optional modes, I ought to mention “range extended”, on behalf of those in Forestville. I used to live there, and the combination of “887-”/95436 stretches miles West of what most consider to be Forestville — out River Rd ways past Hacienda,and equally deep into Pocket Canyon, where I know of one Sonic customer in the canyon with a mile-long “driveway”. Only option to them currently, is a wireless carrier I’ve never heard of, that uses the 900 MHz band to give them service that tested at 248K/356K (!) last time I was out there. Furthermore “range extended” would allow you to serve all those “Forestvillans”(sic) clustered around River Rd from the Hiding Place (where I figure ADSL availability would die), all the way to Hacienda Bridge, and maybe a tad beyond that.

I stronly suggest that you insert being able to offer (those) alternate ADSL2+ modes into your deployment plans, if not already, AND:

I’ll be glad to assist with testing ‘Annex Version M’ the moment you het the hardware in at Los Alamos — I’ve got “location” and we can test both “with” and “without” dialtone.:D

-NK

By Nick Karels on Aug 18, 2008
I hope I qualify for the switch over in Rohnert Park. I’ve been waiting for naked-DSL for a very long time now. (I’ve been with you since you were a $2/mo dial-up.) The extra speed is welcomed as well. I’m so excited!

By Jeremy on Aug 19, 2008
I’m glad bundling is optional. I would require the ability to have just data. Maybe I’d add video for a month to see if I like it, but would want to easily cancel video (by a webpage) if I don’t.

Again, thanks for adding ADSL2+.

By Jeremy on Aug 19, 2008
Any idea what real world speeds are likely in the field for people stuck on the far end of the loop from their CO?

I believe I’m 12k feet, ADSL1 is stable at 1.5/384k. Its unreliable any time I’ve tried faster lines, getting around ~2.5/512k as the SNR.

Here’s to hoping for a successful deployment.

By gps on Aug 22, 2008
gps,

At this point, we’re limiting the product to 6.0 and faster loops, which are generally short (a bit over a mile). ADSL2+ doesn’t provide much benefit over ADSL1 in reach at this point.

A pending standard, reach extended ADSL2 may be a good one to keep an eye on. RE-ADSL2 is also known as ASDL2 Annex L. You can find a good treatment of the topic at Commsdesign, including some graphs that might give you an idea about what sort of speed bump you might see when Annex L becomes available.

By Dane Jasper on Aug 26, 2008
Can I start paying for next gen services now? I’m at $59.95/mo for 3Mbps/512kbps residential dynamic, so it would save me a few bucks while I’m waiting for ADSL2

By Jon on Aug 27, 2008
Jon,

It’s a different network, so it’s got different cost structures for us, and that’s a big driver in the pricing. Sorry!

Tell us where you’re located and I’ll try to give you some idea about if/when we’ll be there.

-Dane

By Dane Jasper on Aug 27, 2008
Hey Dane,

I’m in Berkeley, nearest to the Albany CO (510-558). Would love to know when ADSL2 is moving into the ‘hood.

thanks!
jon

By Jon on Aug 27, 2008
Jon, Berkeley and Albany are coming very soon. I don’t have a precise date, but I believe it’s scheduled for build out during the same phase as much of our North Bay work. SF will be subsequent to that.

By Dane Jasper on Aug 27, 2008
I’m in Folsom, CA – FLSMCA14. Does your subscriber base out here warrant exploration into my area?

By Adam on Aug 28, 2008
Are customers like me, who are fed off of an RT and not directly off a CO, going to be able to get service? I’m almost 15000 feet on the dot from my CO.

By Nevin on Aug 29, 2008
Adam,

Folsom isn’t a location that we are likely to deploy in the foreseeable future. This is due to backhaul cost and availability, current Sonic.net customer count there, population size and density. Sorry!

-Dane

By Dane Jasper on Aug 29, 2008
Nevin,

RTs are our next challenge. We will begin doing work toward RTs, intially in Santa Rosa, likely early next year. We have already done some initial research, and we are guardedly optimistic, at least about Sonoma County locations. It is challenging however, and we are not completely positive that all of the obstacles can be surmounted yet.

-Dane

By Dane Jasper on Aug 29, 2008
Quote: For customers near downtown Santa Rosa, these products will be available in just a couple weeks. Unquote…

So what is a couple of weeks?

By Myron on Sep 4, 2008
I understand the order processing software is just about ready. We have a couple customers we’re working with now who will flow through as final beta testers, then we’ll make general release of the order form.

-Dane

By Dane Jasper on Sep 4, 2008
If you need another beta tester, I’m very close to the main santa rosa CO.

By Nick on Sep 5, 2008
Berkeley (a.k.a. Albany, right on the edge)
(510) 524 exchange

I’m just now fiddling to clean up our house wiring, try to get up to 3.0, to get the benefit of moving up a tier in static DSL a few days ago.

Please sign me up and tell me when and what to do next. _READY_ for improvement.

By Hank Roberts on Sep 7, 2008
We live a just over a mile from downtown (a block past Pacific Ave). Any idea when the service will be avalable for us? We are most interested in the voice part of this service… is it part of the initial rollout? Just wondering

By Steve on Sep 8, 2008
Steve,

No, voice is coming later. It’s looking like around the new year at this point, based upon the development and testing time required.

You can start with the data product, then swing your AT&T voice number into this platform as soon as it’s available.

-Dane

By Dane Jasper on Sep 8, 2008
Any estimate on when the new products will be available in San Mateo?

By John on Sep 17, 2008
John,

No, we don’t have a firm deployment time frame for locations beyond those published above.

-Dane

By Dane Jasper on Sep 17, 2008
Dane,

I am very excited about the new products. I just jumped into a new promo deal on my Residential Pro DSL so the bump to Fusion 6/1 would be nice. If I do this I am also looking at becoming a Sonic Hotspot. I am located near Railroad Square close to Franco American Bakery in a 2 story house. Do you guys a place to but a big antenna?

When do you think Fusion will be online in my neighborhood?

Thanks,

Andre’ Siedentopf

By Andre' on Sep 17, 2008
Residential ordering is now online:

http://www.sonic.net/sales/fusion/broadband/

-Dane

By Dane Jasper on Sep 18, 2008
Yeek. Boy did I time this wrong.
We just changed up to Pro-S a couple weeks ago.

I guess we’re committed to ATnT for a whole year before we can change to Fusion?

Well, we’ll bang on ATnT to try to figure out why we are getting some line congestion now and try to be sure we _can_ use Fusion a (sob!) year from now.

By Hank Roberts on Sep 20, 2008
Hank,

If you are a Sonic.net customer, you can always upgrade! No need to wait.

-Dane

By Dane Jasper on Sep 21, 2008
Great, thanks (got the same answer from support email).

By Hank Roberts on Sep 27, 2008
Have you seen this one Dane http://www.pressdemocrat.com/article/20080929/BUSINESS/809290276

Looks like a few of your customers are pimping out your new service to the folks on the PD’s forums…

By Bill on Sep 30, 2008
When are we going to get decent speeds out in the Mayette Village area of Santa Rosa (about 2.3 miles from the central office)? I currently can’t get over 348k own on my 1.5Mb service line!

By Jim Dickerson on Nov 18, 2008
Jim,

ADSL2+ can provide a faster connection at the longer distances as well, but we’re not yet using it in that way. Over time, we’ll begin to experiment, but right now honestly the focus is on the locations that are within 8,000ft.

-Dane

By Dane Jasper on Nov 18, 2008
It seems the price difference for static IPs is a bit steep. Is there no way
to lower that and only offer 1 static IP (after all, that is all I really need with NAS)?

- Michael

By Michael on May 10, 2009
Static IP pricing is a bit higher than dynamic throughout the industry. I’ll certainly concede that the price point is not fully supportable by the costs of the address space itself, it’s to some degree a case of what the competitive market will bear (and to some degree, static users helping drive down cost for dynamic ones.) There is some extra config setup and maintenance for static IP customers, and also some assumptions that they’ll use a little more bandwidth.

For this reason, one costs the same as eight; it’s the capability, not the actual consumption of IPs that’s the trigger.

-Dane

By Dane Jasper on May 11, 2009