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AdamKane

join:2010-08-24
Neosho, MO

I have another "Why?" question.

Why do most satellite broadband companies force their customers to sign a long-term contract and charge their customers their souls (ridiculously high price) when they terminate early?!


zeddlar

join:2007-04-09
Jay, OK
Reviews:
·exede by ViaSat
·McDonald County ..

because both the equipment at your home and the equipment they use to serve your home is super expensive. Remember, if they have an antenna problem they cant just climb a tower and fix it like your local wisp. It costs them millions of dollars for those repairs and probably several hundered million for each satellite they put up there It is expensive but when you compare start up costs for their business campared to landline service the question kinda becomes how come landline services charge so much, lol. Personally it has always amazed me that if satelite companies can turn a profit on the services they offer then just exactly how much of the amount I would pay for cable or DSL is actually just going in someones pocket.
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HughesNet elite plan/.74 dish w/1watt trans. / 9000 modem / 3 computers on a linksy's wired network


AdamKane

join:2010-08-24
Neosho, MO

4 edits
reply to AdamKane

I can understand a fairly high monthly fee, but not the contract. Seriously, if Skyfx can run a business without putting their customers in shackles, why can't Hughes or Wildblue?



dbirdman
Premium,MVM
join:2003-07-07
usa
kudos:5

said by AdamKane:

I can understand a fairly high monthly fee, but not the contract. Seriously, if Skyfx can run a business without putting their customers in shackles, why can't Hughes or Wildblue?

There are two parts to the answer.

First, 2-way equipment is exponentially more expensive than 2-way. Just like Cellular providers (who generally have similar contracts), the equipment costs more than the customer pays, and only by keeping you for a long time do they make money.

Second, it could be argued that Skyfx CAN'T run a business that way. No one-way provider has been particularly successful at all.
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Motosat self-pointing dishes: 1.2-meter XF-3 on 105W or 121W, .74 meter G74 on 89W, SL-5 HD DirecTV|idirect 3100|Hughes HN7000S|Verizon UMW190 Air Card|1990 Blue Bird Wanderlodge Bus "Blue Thunder"|Author of hnFAP-Alert, PC-OPI and DSSatTool


Island Jeff

join:2005-07-18

1 recommendation

reply to AdamKane

said by AdamKane:

I can understand a fairly high monthly fee, but not the contract. Seriously, if Skyfx can run a business without putting their customers in shackles, why can't Hughes or Wildblue?

Looking at skyfx.us , I'm glad that they are another option in the marketplace, but the specifications seem to have some definite major tradeoffs to my eye in exchange for no contract.

First is the basic technology as was already said - with Skyfx you're using one-way technology which has been around for longer, doesn't require nearly as precise a setup, and they're only providing one leg of the two - you still need to have the ability to get a (reliable) dialup or some kind of terrestrial isp for the return leg. I know some like it for the reduced lag, but it's definitely less cost of installation, less cost of equipment, and they don't have the expense on the satellite side of needing to facilitate the upload.

Second, if I look at the packages on their site, if you look at what they actually provide before the RUP kicks in to drastically reduce speed, it's not as much as the common 2-way providers, hughesnet or wildblue. That site lists the 1.5 Mbps download plan (no upload) at $79.95 a month, and if you look at the RUP you only get full speed for the first 2500 MB of download. If you use over 14 GB your speed is reduced to 64k! With wildblue, the FAP stinks compared to a terrestrial ISP, but at least you can use 17 GB at full speed if that is your wish.

It's nice to have an option (any additional option in the marketplace is good in my book) esp. if someone needs to self-point and only needs the system for a couple months, but I think the two-way providers are definitely providing more (more bandwidth + more bandwidth at full speed + upload capability + no need for a terrestrial isp upload link) in exchange for the awful binding contract. Without the contract, they would probably have a major additional cost for installers in remote areas to spend a couple hours plus transportation time.
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Very happy TDS DSL user | Wildblue in Lake Michigan


grohgreg
Dunno. Ask The Chief

join:2001-07-05
Dawson Springs, KY

3 edits

Well put Jeff. To reinforce your points, the one-way outdoor equipment (for which they typically charge $300 up front) is - in my opinion - junk. The dish mount is flimsy, the LNB mount is a twig, no stabilizer bars are provided for vertical or roof mounts. If you put it on a pole in your yard, it's gonna wave at you in the wind. One provider brags about the fact that you can replace the LNB for only $10. What they fail to reveal is an inarguable fact that - the cheaper the LNB - the higher the noise floor. That leads to another inarguable fact that - the noisier the LNB - the sooner it will lose the satellite signal during inclement weather. A quick look at some of their FAQs also demonstrates a basic lack of understanding of the product they sell. One provider actually claims that poor "phone lines do not affect your high-speed surfing experience". Yeah, right. Fact is, noisy phone lines increase packet loss >packet loss precipitates retransmissions >retransmissions necessarily reduce throughput.

There's more, but this much should help demonstrate that there's a lot less to the one-way experience than the providers would want you to know. Whereas one-way providers claim they only charge half as much as 2-way providers. True. But left unstated is that they also only provide half as much. So once again, it's impossible to argue with the precept that folks simply get what they pay for. No more, often less.

//greg//
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HN7000S - 98cm Prodelin/2w "pure" Osiris - ProPlus - G16/1250H - NOC:GTN - NAT 67.142.115.130 - Gateway 66.82.25.10 - DNS 66.82.4.12 and 66.82.4.8 - Firefox 3 - AV/Firewalled by NIS2011 beta