[comp.dcom.modems] Bandwagon not Bandwidth

russell@imtec.co.uk (Russell Brown) (10/11/88)

There have been a number of articles talking about the (lack) of high
speed modems in the U.K.  Although there are now a few sites using
trailblazers and V.32 modems most folks still use V22 or V22.bis
beasties.

Why? Well maybe the price of these exotic modems has something to do
with it.

Until (very) recently, the standard V.22bis modem in the U.K. was the
Dowty Quattro - this retails at #795 (:bc -l..... $1300 ish).  Exotic
devices like trailblazers (also sold by Dowty) retail at around the
#1395 mark ($2300).

Reading between the lines these seem to compare with $400 for a
V22bis and $1500 for a trailblazer in the US of A.

Why a price differential of 50-300% ? A friend ( :-) ) has used
unmodified US sourced modems in the U.K. so there are no great
technical changes required.

It seems that the prices were initially fixed high and the other
manufacturers have just jumped on the bandwagon.

How do these prices compare with others around the world?

PS. We don't even get the special offers for BBS sysops or usenet
registered sites - sniff sob :-(
-- 
 ---------------------------------------------------------------
|  Russell Brown                 | Voice: 0733-66852            |
|  Imtec plc                     | EMAIL: russell@imtec.co.uk   |
|  7 Fitzwilliam Suite,          | UUCP:                        |
|  Broadway Court, Peterborough, |  ...mcvax!ukc!imtec!russell  |
|  Britain, PE1 1SQ              |                              |
 ---------------------------------------------------------------

andy@acorn.UUCP (Andy Ingle) (10/12/88)

In article <752@imtec.co.uk>, russell@imtec.co.uk (Russell Brown) writes:
> There have been a number of articles talking about the (lack) of high
> speed modems in the U.K.  Although there are now a few sites using
> trailblazers and V.32 modems most folks still use V22 or V22.bis
> beasties.
>    [disscussion about UK/USA price differences for high speed modems]
> Why a price differential of 50-300% ?

I wonder if this whole USA price cutting business is simply a game in which
modem manufacturers battle to gain the majority share of the market.
Remember when there were three types of VCR format? Today there is only one -
the one that sold the most. Us UK users loose out on this, the total market is
much smaller and many sites use packet-switched networks such as JANET or PSS
for file transfers. High speed (and therefore higher priced) modems are of
course wasted on interactive terminal to computer link-ups.

I bought a Trailblazer a year ago so we could talk to the USA more cheaply
than by International PSS and now use it to talk to cam-cl and ukc as well.
The list price one year ago was #1800 but has now come down to #1300 or less.
It has already paid for itself in Telecom charges and I consider it an
excellent modem for anyone needing to ship large volumes of data (ie news)
around using UUCP.

--Andy Ingle

jpdres10@usl-pc.usl.edu (Green Eric Lee) (10/15/88)

In article <752@imtec.co.uk> russell@imtec.co.uk (Russell Brown) writes:
>There have been a number of articles talking about the (lack) of high
>speed modems in the U.K.  Although there are now a few sites using

>Until (very) recently, the standard V.22bis modem in the U.K. was the
>Dowty Quattro - this retails at #795 (:bc -l..... $1300 ish).  Exotic
>devices like trailblazers (also sold by Dowty) retail at around the
>#1395 mark ($2300).
>
>Reading between the lines these seem to compare with $400 for a
>V22bis and $1500 for a trailblazer in the US of A.

Trailblazers sell for $1300 in the USA, and I have seen V22bis (2400
baud, right?) for $95, via mail-order ($150 from retail outlets).

It seems that everything sold by American companies in the UK is very
expensive. For example, back in the olden days, Commodore sold their
C-64 home computer for the equivalent of $300 in the UK -- at the same
time that they were selling it here for $150. Part of it is the
distributor/dealer network in the UK, which is almost as bad as that
in France or Japan (middlemen, middlemen, here there everywhere).
Other culprits may be: the balance of payment problems that the UK has
had for lo so many years, and import tariffs (sort of a response to
those problems). And, finally -- they just don't sell much product in
the UK. The UK isn't a Third-World nation yet, but it's not exactly
wealthy, either. There are no economies of scale to bring down the
price of shipping across the sea and certifying with local
authorities. 

The USENET needs an economics newsgroup, for discussing issues like
this, but, alas, it doesn't seem it'll happen.

 Eric Green   {well-connected-site}!killer!elg

pfh@pai.UUCP (Peter Hill) (10/15/88)

In article <752@imtec.co.uk>, russell@imtec.co.uk (Russell Brown) writes:
> devices like trailblazers (also sold by Dowty) retail at around the
> #1395 mark ($2300).

When we bought ours, the Trailblazer Plus listed for US$1345, quantity one.
I think that's still the US price.

I worked at one UK computer site where I heard that US manufacturers
adjust their prices for the UK by replacing the dollar sign with a pound
sign.  I thought it was a joke but I have seen several examples since then.
Coincidence, of course.

-- 
______________________________________________________________________________
Peter Hill                          pfh@pai.mn.org             +1 612 894 0313
Prime Automation, Inc.              ...{sun!tundra,umn-cs!hall,bungia}!pai!pfh