| 10 cents per GB cost estimate ??? Both "stop the cap" and Consumerist use the cost to Frontier of additional bandwidth at 10 cents/GB. Of course, like all these sites, they don't offer any proof at all how they come up with that number. |
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| said by fAcEtIOUs:Of course, like all these sites, they don't offer any proof at all how they come up with that number. The Consumerist posts this almost immediately in the article. They list the formula as:
$49.99 + $3.99 MRF $10.80 less than 10c So basically your total cost for the line divided by 5 GB. Pretty simple. |
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 RallyBah HumbugPremium
join:2000-10-27
Astoria, NY
 ·RoadRunner Cable
| reply to fAcEtIOUs
I know my company pays multiple NSP's a cheap fixed rate for bandwidth, it's roughly 1.00 a gig - with 99.9% guareented transmit, and return on packets.
I do know of other companies who pay pennies on the dollar during off-peak, and pay probably 10-50c during 'peak' times.
ISPs mainly pay incredibly cheap prices, and turn it around and do a incredible markup - dont know off hand, but im guessing 500% to 1k - hell some places even more.
There is no definitive answer to 'how much' it costs for ISPs bandwidth costs, because they'll never ever, let the consumers what bandwidth really costs. |
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| reply to fAcEtIOUs
The $.10 number comes from the average wholesale bandwidth price... |
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 BF69Premium
join:2004-07-28
Camden, TN | reply to fAcEtIOUs
said by fAcEtIOUs:Both "stop the cap" and Consumerist use the cost to Frontier of additional bandwidth at 10 cents/GB. Of course, like all these sites, they don't offer any proof at all how they come up with that number. Considering me as a little guy can have a website with a hosting package at less than 10 cents per GB I think Frontier can get it cheaper than me. Simple logic really. |
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 sporkmedrop the crantini and move it, sisterPremium,MVM
join:2000-07-01
Morristown, NJ
·Optimum Online
| reply to fAcEtIOUs
said by fAcEtIOUs:Both "stop the cap" and Consumerist use the cost to Frontier of additional bandwidth at 10 cents/GB. Of course, like all these sites, they don't offer any proof at all how they come up with that number. I can give you a real number. It's higher since it's a lower commit than someone like Frontier. You can buy Tier-1 connectivity for $3K/month on a GigE port with a 100Mb/s commit. This is a business offering. You may fill the pipe, you may resell, you may do whatever you want. If you run the numbers on that, it's roughly $0.30 per GB.
Now someone like a telco is going to be buying more than that, and the more you buy, the cheaper it gets. And if you offload some traffic via peering and Akamai (all pretty easy these days), it's even cheaper. And these guys don't have the congested last mile problem that cable has... |
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BF69Premium
join:2004-07-28
Camden, TN | said by sporkme:said by fAcEtIOUs:Both "stop the cap" and Consumerist use the cost to Frontier of additional bandwidth at 10 cents/GB. Of course, like all these sites, they don't offer any proof at all how they come up with that number. I can give you a real number. It's higher since it's a lower commit than someone like Frontier. You can buy Tier-1 connectivity for $3K/month on a GigE port with a 100Mb/s commit. This is a business offering. You may fill the pipe, you may resell, you may do whatever you want. If you run the numbers on that, it's roughly $0.30 per GB. Now even if they were paying that why charge us $1-$1.50 per GB? Why not charge ACTUAL COST. Face it, they could charge 20¢ per GB overage and still make money. And if ISPs came out and said they were instituting 250 GB monthly caps and had 20¢ per GB overage fees, 99.9% of us wouldn't have an issue with that.
In the end overage fees aren't going to stop someone from downloading if he has the money to pay for the overage fee. Just do what satelite does and lower the speed. If you go over their cap they throttle you down to dial-up speed. That's more of a motivator to stop downloading too much than any fee. |
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