 Jerm
join:2000-04-10
Richland, WA
kudos:2
1 edit | reply to Warez_Zealot
Providers cost per GB? Try $0.10 per GB! Here's the real problem with Metered Internet:
When ISPs buy in bulk, they get good per GB pricing. Common estimates range from $0.10-$0.20 per GB for the bigger ISPs. (cost from their upstream provider)
How much bandwidth does the *average* consumer use per month? You might be surprised - a large amount of $50/month highspeed users are pulling LESS than 1GB per month! The overall average has been reported in the past to be between 2-5GB per month (from cable ISPs with high speeds).
That's why unlimited internet works. The few users who do use 30-50GB a month are subsidised by the many who do much less. And the very rare > 100GB/month user probably does lose them $$, but this game is all about the numbers.
Why should we NOT go to metered 'net? Because there's no way ISPs would charge a reasonable (ie $0.50/GB) rate and quite simply - despite all the whining here on BBR, most of the time UNLIMITED INTERNET WORKS JUST FINE THE WAY IT IS! |
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| the bond issues!
Some isp's fund their growth through bond issues. Stable predictable income is what investors want.
Not a unpredictable revenue stream that only pays in the cold months.
Its not feasible for the reasons you mentioned. Most people don't use their connections so it would probably reduce cash flow except in the coldest months of the year. |
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openbox9
join:2004-01-26
Alexandria, VA
kudos:2 | Minimum fee for service which includes a basic amount of traffic per month. Above that, you pay per byte. There would be no reduced income for the ISPs. In fact, they would see an increase in revenue. |
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