said by Guspaz:That's the thing though, Bell wholesalers are responsible for maintaining their own connection. The $20.50 connection fee and $1300 GigE to Bell only gets the user's packets to the ISP (TekSavvy)'s network. From there, the ISP is responsible for getting the packets out to the internet at large.
They currently have six GigE lines to various providers (Cogent, Teleglobe, Internap, Peer1, etc) for that purpose.
My point was that if you eliminate the two Bell-related charges, and possibly some of the equipment costs required to connect to Bell, you're left with TekSavvy's $9 per month or so. Inside of that, they're able to cover all expenses and provide 200GB of actual IP transit. For $19 ($39.95 to customer, $19 is roughly left over after Bell takes their cut), they're able to provide unlimited services, targeted at users who use over 300GB per month (300-500 is probably typical).
If TekSavvy can make a profit, I fail to see why Shareband, with very similar costs once Bell is removed from the equation, couldn't do the same thing.
Well, it remains to be seen. Lets see how this develops.
