| reply to JasonD
Re: Caps and pay-by-byte is just around the corner said by JasonD :
Wholesale bandwidth pricing for the big guys is cheap (somewhere south of 5 cents per gig).
The price you quote is for backbone transfer prices. It does NOT include the costs of upgrading residential distribution networks to handle much larger bandwidth loads. The cost to do those upgrades has to be included in the "per byte tiers". And it won't be 5 cents or 25 cents per gig. It would have to be closer to a $1/gig.
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| How in the HELL do you get $1.00/GB pricing? HELL, if I BOUGHT a T-1, I could move a total of 950GB/month, for only $350.00 a month. THAT's 33 cents per GB, with a DEDICATED LINE. The SHARED medium, with a massively nice 10-1 ratio, means it would cost about .03 cents PER GB.
Your greed is betraying you. There is NO WAY they could ever justify charging MORE that .10 cents per GB. (and that's assuming they have a 1-3 ratio)
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 espaethDigital PlumberPremium,MVM
join:2001-04-21
Minneapolis, MN
kudos:2
 ·Clear Wireless
| said by karlmarx:How in the HELL do you get $1.00/GB pricing? HELL, if I BOUGHT a T-1, I could move a total of 950GB/month, for only $350.00 a month. THAT's 33 cents per GB, with a DEDICATED LINE. At $350/mo you're not going to get a dedicated line.
1) DS1 service is a tariffed data offering with pricing regulated by the PUC. Just like gas stations can't sell for a loss to undercut the competition in most states, _LECs can't charge less than the tariffed rate for service. On the average you pay $225/mo alone for your loop charge (the raw circuit with no data on it); sure in some places (ie, Dallas) you can get $125 loops, but in other places (ie, Northern Illinois) you can pay upwards of $800-1000 a loop. Keep in mind that the loop is just an access circuit, it's just like a phone line that is powered with no dialtone. Once you have the loop you still need to provision service at the other end to somewhere.
2) There's no way in hell you can move 950GB on a T1 in any scenario outside of pattern testing. You can move just over 450GB in one direction, but there's no way you can saturate the circuit bidirectionally with real traffic. You'd step all over your own TCP ACKs.
3) Given that your loop charge encompasses the vast majority of the $350/mo you quoted, this is GUARANTEED to be a shared connection in at least 3 places before you hit an Internet backbone. The circuit will most certainly be an ATM or FrameRelay circuit so you'll have oversubscription in the LEC's frame/ATM cloud, the access circuit between your ISP of choice and the LEC cloud will most certainly also be oversubscribed, and the circuit from the LEC to their upstream Internet carriers will also be oversubscribed.
Dedicated systems can certainly be built, but the solution would be significantly more expensive than what you are implying. |
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approval from:
fAcEtIOUs 
| reply to fAcEtIOUs
said by fAcEtIOUs:said by JasonD :
Wholesale bandwidth pricing for the big guys is cheap (somewhere south of 5 cents per gig).
The price you quote is for backbone transfer prices. It does NOT include the costs of upgrading residential distribution networks to handle much larger bandwidth loads. The cost to do those upgrades has to be included in the "per byte tiers". And it won't be 5 cents or 25 cents per gig. It would have to be closer to a $1/gig. The number you provide is still too high, while the 5 cents number is too low for the last mile. The more reasonable price for the last mile would be in the range of $.50 to $.75/GB. There is no was that the cost per GB would increase 20 fold. A ten fold increase in more in line with reality, especially as costs decrease. |
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 sporkmedrop the crantini and move it, sisterPremium,MVM
join:2000-07-01
Morristown, NJ
 ·Optimum Online
| reply to espaeth
said by espaeth:2) There's no way in hell you can move 950GB on a T1 in any scenario outside of pattern testing. You can move just over 450GB in one direction, but there's no way you can saturate the circuit bidirectionally with real traffic. You'd step all over your own TCP ACKs. Bzzt. Wrong answer. You sure can fill a T1 in both directions. Try it out some time, I have! Even in 1998 on a Cisco 2501 with nothing fancy but WFQ turned on. |
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Reviews:
·Comcast
| reply to espaeth
I disagree. In mass near where i live I can get a T-1 (analog) for $199. With this I get a direct link to my buddies data center and off to the net. If I wanted to buy a pop to the net from the cloud its only $70 more from new Verizon business / old MCI.
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espaethDigital PlumberPremium,MVM
join:2001-04-21
Minneapolis, MN
kudos:2 Reviews:
·Clear Wireless
| reply to sporkme
said by sporkme:[Bzzt. Wrong answer. You sure can fill a T1 in both directions. Try it out some time, I have! Even in 1998 on a Cisco 2501 with nothing fancy but WFQ turned on. .. and the people behind that router didn't murder you? Given the exponential increase in serialization delay once bandwidth utilization jumps over 70% on a T1, the network becomes nearly unusable even if you are just saturating in one direction. |
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espaethDigital PlumberPremium,MVM
join:2001-04-21
Minneapolis, MN
kudos:2 Reviews:
·Clear Wireless
| reply to BosstonesOwn
said by BosstonesOwn:I disagree. In mass near where i live I can get a T-1 (analog) for $199. With this I get a direct link to my buddies data center and off to the net. If I wanted to buy a pop to the net from the cloud its only $70 more from new Verizon business / old MCI. It's going to be cheaper in your market because the loop termination tariff is $80 - $100/mo per Point of Termination, depending on if you go with a 1 - 5 year commit on the service. (That's significantly below the national average for termination fees) Since you're terminating in the cloud you'd also only have to pay midlink mileage costs between the cloud and your residence. If you meant you can get a true point to point T1 to said data center, I have to assume the people you are working with are terminating it on a channelized DS3? (and thus making the termination costs significantly lower)
Source: »retailgateway.bdi.gte.com:1490/v···=Created
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