 hopeflickerCapitalism breeds greedPremium
join:2003-04-03
Long Beach, CA
kudos:1 | reply to espaeth
Re: Wake up ISPs from what i read and hear, Bandwidth doesnt cost as much as everyone says it does.
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People pray to God because they're told to. |
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 espaethDigital PlumberPremium,MVM
join:2001-04-21
Minneapolis, MN
kudos:2
 ·Clear Wireless
| said by hopeflicker:from what i read and hear, Bandwidth doesnt cost as much as everyone says it does. That's why I said to price it out for yourself rather than relying on people who may or may not have a clue of what they're talking about. There's also 2 components to ISP bandwidth: the cost to procure upstream connectivity from a carrier, and the cost to provide "last mile" services to your subscriber base.
I think if you took the time to do an honest investigation into just the carrier costs alone you would be surprised. |
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yabos
join:2003-02-16
London, ON | Go check out Amazon S3 prices. $0.10/GB in and $0.18/GB out. You do have to pay for storage but the bandwidth cost is extremely low and they're still making a profit. |
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espaethDigital PlumberPremium,MVM
join:2001-04-21
Minneapolis, MN
kudos:2 Reviews:
·Clear Wireless
| said by yabos:Go check out Amazon S3 prices. $0.10/GB in and $0.18/GB out. You do have to pay for storage but the bandwidth cost is extremely low and they're still making a profit. So assuming a conservative 220GB per 1mbps of 95th percentile usage, that's $39.60/mbps out and $22/mbps in. That's hardly impressive pricing.
Amazon is cheaper on inbound because you purchase bandwidth symmetrically (ie, you buy 1gigabit, you get 1 gigabit in and 1 gigabit out), and since Amazon is in the business of moving content out from their network, they have a substantial amount of inbound "free" bandwidth where you can use a ton of it and they wouldn't have to add capacity. Only usage in the outbound direction would make them grow their circuits.
Applying this pricing to ISPs where the traffic is mostly inbound (and thus inbound consumption makes them grow capacity) if you are eating 5mbps of bandwidth all month long you are consuming $198 ($39.60 x 5) worth of uplink transport. ISP fees are closer to the $10-15/mbps rate, but it still adds up. Especially so when you figure it costs them about $15-40/mo in just the local cable/DSL access network costs to provide 4-10mbps of shared capacity to your house. Then you have the call center / service tech overhead on top of that, plus you need some room for profit. |
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yabos
join:2003-02-16
London, ON | I'm comparing it to Bell's $1.50/GB which is outrageous. $0.10 per GB may be still a lot but it's a little more reasonable if they want to charge someone for going over some data cap. |
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