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Forums » Wholesale Bandwidth Prices Still Dropping » We need caps again why?
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pspcrazy
Anime Freak

join:2008-02-06
San Diego, CA
reply to fcisler
Re: We need caps again why?

Dang that's not too bad imo, I've seen much higher costs for the same speeds your getting. If you live in San Fran you can get paxio for 300 or so 1GB up and down, from their own fiber ring. I wish I knew how they do it lol.


pspcrazy
Anime Freak

join:2008-02-06
San Diego, CA
reply to openbox9
It doesn't help when their support can't help you for shit, and you have to wait 1 hour on line for them to help either. Mabye if they didn't make so much mistakes and have such slow reps it may have cut those costs down.

K Patterson
Premium,MVM
join:2006-03-12
Columbus, OH
reply to UnKown
Who supplies bandwidth for $4/meg, please?

Thanks,


UnKown
The Underground Network

join:2002-09-08
Orlando, FL
·Earthlink Cable Mo..

reply to wifi4milez
true that it does not apply to the lower end consumers, this whole debate is how we need caps. As an isp i can get bandwidth from a tier 1 provider for as little as 4 dollars a meg.

if you look at level 3 communications they have whole fiber rings laying in america that are not even live

"Level 3 owns a large amount of dark fiber. It occasionally leases this fiber out to other providers, companies, or organizations who wish to operate their own backbones between cities."

»en.wikipedia.org/wiki/Level_3_Communications

thus there is no reason for caps. just corporate greed.

K Patterson
Premium,MVM
join:2006-03-12
Columbus, OH
·RoadRunner Cable

reply to wierdo
Depreciation and amortization schedules for financial reporting are set by GAAP - bean counters. For tax purposes, they are set by the IRS. The depreciation allowed is treated as an expense and is deducted from income, reducing the taxes paid. The two get reconciled on financial statements by listing the tax savings on the larger deduction allowed by the IRS as "deferred federal taxes".

You don't get to choose your own equipment life. If it lasts longer than the depreciation schedule, there is no more expense to be deducted. If it lasts less, then you can deduct the remaining undepreciated value when you dispose of the equipment.


funchords
Hello
Premium,MVM
join:2001-03-11
Washington, DC
·Verizon Online DSL
·Skype

reply to wierdo
said by wierdo See Profile :

There isn't a company in the world amortizing the cost of networking equipment over 30 years. That's a likely figure for property and plant, though.
When the term "plant" is used in this context, is that simply building (roof/floors/walls)? Would "vaults" be plant? Thanks.
--
Robb Topolski -= funchords.com =- Hillsboro, Oregon
More features, more fun, Join BroadbandReports.com, it's free...

wierdo

join:2001-02-16
Tulsa, OK
·Future Nine Corpor..
·Teliax VOIP

reply to patcat88
said by patcat88 See Profile :

Their Bay Networks equipment was amortized over 30 years and it must generate revenue for 30 years before being permitted to be removed.
There isn't a company in the world amortizing the cost of networking equipment over 30 years. That's a likely figure for property and plant, though.

5 years or less is more likely.

Also, it's nothing nefarious, it's just how you treat capital expenditures for accounting and tax purposes. Essentially you spend x dollars on a building, router, or whatever, and you get to write off the value over a certain number of years, so if you buy some industrial equipment expected to last 30 years, you get a yearly tax benefit of x/30. If you buy a router expected to last 5 years, you get x/5. (approximately, this is a general description, residual value complicates things somewhat)

Fiber construction cost is probably amortized over 30 years, but the electronics on it certainly aren't.
--
It's wierdo, not weirdo. Yes, I know that's not the 'proper' spelling of the similar english language word.


wifi4milez
Big Russ, 1918 to 2008. Rest in Peace

join:2004-08-07
New York, NY
·Verizon FIOS
·Sprint Mobile Broa..
·RoadRunner Cable
·BroadVoice

reply to fcisler
said by fcisler See Profile :

Hahahah $400. Please provide me that service. You can't....when your buying several gigabits, then possibly.

The $2,000 we pay would most likely be $3,000+ to any other business. We are "local gubbament" and get significant discounts on it.
He has no idea what he is talking about. The $4 per gig only applies to carrier customers who order a full 10Gbps port on a 36 month term.

quote:
The move lowers Cogent's price for Ethernet-based Internet access to as low as $7 per megabit for enterprise customers and $4 per megabit for its highest-volume service provider customers, both prices requiring three-year contracts.
--
If history teaches us anything, it teaches that simple-minded appeasement or wishful thinking about our adversaries is folly.
-Ronald Reagan-


fcisler
Premium
join:2004-06-14
Riverhead, NY
reply to UnKown
Hahahah $400. Please provide me that service. You can't....when your buying several gigabits, then possibly.

The $2,000 we pay would most likely be $3,000+ to any other business. We are "local gubbament" and get significant discounts on it.


wifi4milez
Big Russ, 1918 to 2008. Rest in Peace

join:2004-08-07
New York, NY
·Verizon FIOS
·Sprint Mobile Broa..
·RoadRunner Cable
·BroadVoice

reply to UnKown
said by UnKown See Profile :

here's something for you.

»www.cogentco.com/us/contact_sales.php

home of the 4 dollar megabit.

Cogents multinational, independent IP backbone is the perfect vehicle for metropolitan, national, and global point-to-point services. Available in speeds of 100 Mbps to full GigE, we help you build custom connections according to your specific configuration needs.

so a 100mbps conenction would cost you a little more than 400 dollars with equitment and taxes, much less than your famed 4000 dollars.
YAWN. Clearly you know nothing about the industry. Cogents $4 per megabit doesnt apply to 100Mbps connections. It was a good try though, so chin up little buddy!
--
If history teaches us anything, it teaches that simple-minded appeasement or wishful thinking about our adversaries is folly.
-Ronald Reagan-


UnKown
The Underground Network

join:2002-09-08
Orlando, FL
·Earthlink Cable Mo..

reply to wifi4milez
here's something for you.

»www.cogentco.com/us/contact_sales.php

home of the 4 dollar megabit.

Cogents multinational, independent IP backbone is the perfect vehicle for metropolitan, national, and global point-to-point services. Available in speeds of 100 Mbps to full GigE, we help you build custom connections according to your specific configuration needs.

so a 100mbps conenction would cost you a little more than 400 dollars with equitment and taxes, much less than your famed 4000 dollars.

wentlanc
You Can't Fix Dumb..

join:2003-07-30
Maineville, OH

reply to halfband
said by halfband See Profile :

So you and your neighbors are not using any more bandwidth this year than last year? I know that mine has increased significantly due to video/streaming. For cable companies the issue is in the last mile until DOCSIS 3 gets rolled out. I am not sure why telco's seem to see the need promote caps.
Bandwidth costs / usage are not a linear function. It is a step function. You add capacity for a fixed cost, and you can use all the way up to that capacity for no additional charge. So not only are people using a bit more traffic, but the cable companies have been increasing speeds and adding customers. If bandwidth is really an issue, then don't oversell it so badly. This means managing congestion if a node is full, and splitting it to reduce the oversubscription rate. These costs should be covered by the additional subscribers that are being added. If the average usage goes up, then it's time to upgrade. But as the cable co's have stated, their mean usage is 3GB per month, so where's the big crunch?

cw

wentlanc
You Can't Fix Dumb..

join:2003-07-30
Maineville, OH
reply to ninjatutle
I like your lack of rebuttal about anything substantive that was stated here. It just goes to show that you really have no argument on anything that he is saying.

cw


Vchat20
Landing is the REAL challenge

join:2003-09-16
Warren, OH
clubs:
reply to axus
No, the difference is you end up paying per unit for your water akin to a pay-per-byte scenario that everyone is so against.

openbox9

join:2004-01-26
Alexandria, VA
·AT&T Southeast

reply to joako
said by joako See Profile :

But if I buy a port from a wholesale provider are you implying that it does not connect anywhere?
Of course the port connects somewhere. What did I write that led you to believe otherwise? Maybe the misunderstanding is due to the fact that I only implied "backbone" instead of stating such.
said by joako See Profile :

That wholesale provider needs an infrastructure, which at least financially, will look very similar to what an ISP needs
For a backbone, yes...if the ISP owns their backbone.


funchords
Hello
Premium,MVM
join:2001-03-11
Washington, DC
reply to DINGDONGBONG
Just quit responding to him.


DINGDONGBONG

@telus.net
reply to ninjatutle
Try reading »www.dslprime.com maybe then the BS you always spout about can have some basis in reality...


battleop

join:2005-09-28
00000
reply to axus
I've had a cap on my water usage for the last two years. There are caps on water usage through out the South Eastern US.


joako
Premium
join:2000-09-07
/dev/null
·AT&T U-Verse

reply to openbox9
Click for full size
said by openbox9 See Profile :

I responded by stating that bandwidth is relatively low cost and that the transport and support costs are really the factors driving ISP costs. I added that if costs for support and transit are included in the $10-14/Mbps cost estimates (which they aren't BTW), then Chiyo See Profile's argument about the need for caps may be valid.

pspcrazy See Profile added that the cables already exist and that support costs are a minor factor. pspcrazy See Profile then attempted to restate that caps aren't needed.

I responded by stating that the cable doesn't exist and that transport and support costs are indeed key cost factors for ISPs.
But if I buy a port from a wholesale provider are you implying that it does not connect anywhere? That wholesale provider needs an infrastructure, which at least financially, will look very similar to what an ISP needs, there just isn't generally a last mile and where there is they are usually buying that from the ILEC and passing the costs along.

Also, all of this negates peering. If two ISPs pass an equal amount of traffic between each other they might enter into a peering agreement where the billed cost per Mbps is 0.
--
09:F9:11:02:9D:74:E3:5B:D8:41:56:C5:63:56:88:C0


joako
Premium
join:2000-09-07
/dev/null
·AT&T U-Verse

reply to JasonOD
said by JasonOD :

Bandwidth is a very small item (and growing smaller) in the list of ISP expedetures. Hardware and human costs are the real costs. Caps in fact, are only thing that will keep ISP's ahead of the bandwidth demand growth curve. Without it, we'd all be faced with an overloaded infrastructure 24/7. Unless you want to lose your cheap internet.
The trend in wholesale prices going down also indicates all the associated costs are going down. Wholesale providers must incur those same costs as retail ISPs.
--
09:F9:11:02:9D:74:E3:5B:D8:41:56:C5:63:56:88:C0
Forums » Wholesale Bandwidth Prices Still Dropping
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