Lazlow
join:2006-08-07
Saint Louis, MO
1 edit | reply to PastTense5
Re: 5GB is TOO LOW PastTense5
Here is the flaw in that line of thinking. ISPs do not pay by the GB they pay by the peak (per month)Mbps. So no matter how many GBs one downloads during non peak hours it costs the ISP exactly nothing(0) extra. Now consider the number of people sharing the same Docsis channel(often 100 or more) which is 38Mbps has a transit cost of $10-$12 per Mbps per month. If the entire 38Mbps was used for the entire month it would cost the ISP less than $460 in transit costs(actually a lot less). With 100 users on that channel that would be $4.60 per user per month in transit costs. So the transit costs are not the issue.
So lets look at hardware. Well once again it is not dependent on GB/month but by peak Mbps. The system has to have high enough capacity hardware present to handle the PEAK Mbps (4pm-11pm usually). The rest of the time that hardware is essentially running at idle. So the hardware costs are not the issue either.
What is at issue is the rapid growth of online video. Even M$ has now said that online video is the future. The MSOs are terrified that online video will significantly hurt their video products. |
