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Comments on news posted 2005-11-03 10:39:16: The battle has been heating up on Long Island, NY between Verizon and Cablevision; the former running 5-30Mbps Fios broadband, and Cablevision testing 20Mbps and 50Mbps cable service. ..
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 The Way Out
join:2003-01-20
| Where's the proportional price drop for wholesale? So Comcast is somewhere between $40 and $60 per month (depending on market, bundling, promo, phase of the moon, etc.) for a 3-6Mbit connection. For the sake of this calculation, let's call this 5Mbit. That means you're buying bandwidth (and transport) for about $10/Mbit. If this increases 10 fold to 50Mbit/sec, you're now buying bandwidth at $1/Mbit.
When is wholesale bandwidth going to drop to these levels? Even the cheapest most ghetto bandwidth (think Time Warner Telecom, Cogent, etc.) is in the teens and that's before transport costs. Without a proportional drop in wholesale costs, I suspect that free content providers are going to have to start putting limits on their services as they watch their bandwidth bills increase.
Let me address the people who believe that this is an invalid comparison, since the end user is purchasing an asymmetrical connection. If you're a content provider, you're typically using an asymmetrical amount of bandwidth. Several times more outbound than inbound bandwidth -- the opposite of what a net consumer uses. So even though you're buying a symmetrical GigE connection, you're really only using it as an asymmetrical link. | |
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FiOS Worshipper
@verizon.n
| Go FiOS! I live in Long Island, I'm right in the middle of all this and I have to say I'm unimpressed by Optonline's offers. When they advertise 10mb down and you get [on a good day] 5mb instead, you're probably going to get maybe 10-15mb with the 50mb service. I think I'll stay with FiOS  | |
| mazilo
From Mazilo
Premium
join:2002-05-30
Lilburn, GA
| Keep fighting is good news to consumers When companies compete, it is the consumers who usually are benefit from the competition. I wish these two giants compete across the nation, not in NY only. Certainly, if I can get a bigger bandwidth, I sure will enjoy more. IIRC, broadband consumers in HK and Japan are getting Gbps connection for what we have paid here in 10Mbps connection. | |
| RichNice
join:2003-01-09
Columbia, MD | Competition..... Who says competition is a bad thing. You get more than 2 companies vying for your dollar, and this is what you get. By the way, the use of the Rocky IV (?) pic is classic. | |
| DeathWarrant
join:2002-06-12
Coram, NY
| Who Cares! It's all marketing BS Who gives a rats @$$ about download speeds. 10-20Mbps is sufficient for anything you need to do 99 percent of the time. This is all about bragging rights and suckering the unknowledgeable to buy their service. Bottom line is you can't download ANYTHING any faster than the server you are connecting to can upload it. Lets get our upstream bandwidth bumped to 10-20Mbps and then I'll be impressed. | |
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