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chimera

join:2009-06-09
Washington, DC
Reviews:
·Comcast

reply to sonicmerlin

Re: Just Wrong...

From those numbers that server is most likely located in a data center or actually a logical distribution spread out across the world over a number of centers with a cumulative cap. It's true that $5 per GB is highway robbery for a wired connection, but it costs more for residential connections because there is a strong economy of scale behind all of this which is much harder to take advantage with for residential connections as opposed to data centers.

Again, I am in no way saying that $5 per GB is anywhere near fair. $0.50 per GB is a high as I would ever consider fair in this day and age, but I'm fairly certain that it costs most carriers more than a penny per GB per month on a full residential circut.

A quick run through the numbers from »www.infobahn.com/research-information.htm prices an OC3 connection at a minimum of $20,000 per month. This provides a speed of 155Mbps which translates to a cost of $0.40 per GB per month. I'm guessing that ISPs can do this for cheaper internally, but even if it costs them a quarter of this amount per month that still means $0.10 per GB per month so expecting to pay a penny per GB for a residential connection doesn't add up... for now at least. In ten years it might, which is why it's important that if caps show up we make sure that they increase with network capacity.

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