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InvalidError

join:2008-02-03
kudos:5
reply to El Quintron

Re: Caps should be outlawed !

said by El Quintron:

The "caps system" for lack of a better name, is designed to be punitive... this needs to stop, and ISPs have to get back into the business of moving bits, not protecting TV, and their other legacy businesses.

How low would the UBB rate need to be for you to not consider it "punitive" anymore? When I tried calculating the all-inclusive real cost of a GB a few years ago, I came up with a lower bound of $0.025/GB and upper bound of $0.05/GB. While much cheaper than Bell's ~$0.25/GB with CBB, even $0.025/GB would still be somewhat chilling to people who are allergic to paying anything extra.


El Quintron
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said by InvalidError:

While much cheaper than Bell's ~$0.25/GB with CBB, even $0.025/GB would still be somewhat chilling to people who are allergic to paying anything extra.

The "chill" comes from the fact that there's a usage compenent built into the access fee... hence not making it very appealing to go over your caps.

Here's a better question, assuming there was no usage component built in, how much would you charge for 25/10 service? How much would you charge for 6/1 service?
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InvalidError

join:2008-02-03
kudos:5
said by El Quintron:

Here's a better question, assuming there was no usage component built in, how much would you charge for 25/10 service? How much would you charge for 6/1 service?

If I was in charge, 6/1 would not exist where VDSL2 is available (no point in offering it since VDSL2 ports cost the same regardless of speed) and 25/10 without any included usage would be around $20/month.

If it costs ~$100 000 to deploy and operate a DSLAM for 10 years and you have an average of 80 subscribers on it, the DSLAM costs $11/month/sub. Add $3/month to cover copper costs, $2/month/sub to cover CO-side (aggregation) equipment costs, a 15% markup to cover unexpected/marginal costs and profit, the bandwidth-invariant part of VDSL2 access comes out to about $20/month.


dillyhammer
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You're hired. Make it so.

Mike


El Quintron
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said by dillyhammer:

You're hired. Make it so.

Mike

What he said.
--
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Guspaz
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Montreal, QC
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reply to InvalidError
I think it's silly to say that a DSLAM will last for 10 years... With the rate that cable is upgrading their systems, current VDSL2 deployments will not be relevant for high-value markets in 10 years.
--
Developer: Tomato/MLPPP, Linux/MLPPP, etc »fixppp.org


El Quintron
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said by Guspaz:

I think it's silly to say that a DSLAM will last for 10 years... With the rate that cable is upgrading their systems, current VDSL2 deployments will not be relevant for high-value markets in 10 years.

Of course not, but even if VDSL deployments are only good for another 5 years, it doesn't increase the costs to the consumer by much.
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Guspaz
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Well, based on his math the $20/mth becomes $31/mth, which is a decent chunk since you have to also use it to provide low-end service.
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El Quintron
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said by Guspaz:

Well, based on his math the $20/mth becomes $31/mth, which is a decent chunk since you have to also use it to provide low-end service.

If it were up to me I'd probably just phase out the low end service
--
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InvalidError

join:2008-02-03
kudos:5
reply to Guspaz
said by Guspaz:

Well, based on his math the $20/mth becomes $31/mth, which is a decent chunk since you have to also use it to provide low-end service.

If you shorten the service life, you also reduce the OAM costs associated with that lifespan and the cost only goes up $2-3.

As for "low-end service", the port cost would be the same since none of the costs considered in my costing exercise were bandwidth/speed-related. As Quintron said, I would simply not offer such a service since it makes no sense in the port+usage model I derived for Dilly and Quintron over the last couple of posts.