dslreports logo
site
 
    All Forums Hot Topics Gallery
spc

spacer




how-to block ads


Search Topic:
uniqs
11
share rss forum feed


DaneJasper
Sonic.Net
Premium,VIP
join:2001-08-20
Santa Rosa, CA
kudos:9
reply to route246

Re: I feel like I'm subsidizing other customers

said by route246:

I'm not sure why you feel you are subsidizing. Your speed is a function of where you live which is your choice. In general (not necessarily your case, I'm generalizing), COs are optimally located at the historical center of a population cluster. The fact that homes further away from a dense population cluster are in general more desirable has the downside of being further away from the CO.

I think the feeling comes from the impression from our US broadband marketplace that speed costs money. In fact, speed is either a configured limitation, or a physical one - but on a given technology, speed itself is costless.

This leads to the "I am getting less speed so I should pay less" feeling, which does seem reasonable. However, in our model, serving a customer at any distance, they receive the maximum speed (because speed is costless), the cost (and thus price) is derived from the infrastructure cost, not a configured limitation.

-Dane