reply to Simba7
Re: Yeah, let's just ignore the access charges
said by Simba7:We're going around in circles here.
..and the whole "bandwidth hog" thing is crap anyway. So, you have an OC3 connection feeding hundreds of customers that have purchased a 5mbps connection. Then a "bandwidth hog" comes in and uses a bit of it. Hey, he's paying for the 5mbps connection that you advertised. Then everyone's connection slows down because you failed to account for people actually using their connection speeds.
said by Simba7:Again, you're talking about dedicated connections. A dedicated 5 Mbps connection would cost hundreds of dollars a month from a Metro Ethernet provider. (Although these days, they'd probably start you out at 10 Mbps.)
It's simple math. 5Mbps * 100 customers = 500Mbps.
5 Mbps for 100 customers would never be provisioned at 500 Mbps in a residential setting -- more like 50. Which means that each user would have 500 Kbps of dedicated bandwidth. They can burst up to 5 Mbps, to download an ISO or watch a movie. What they cannot do is to use 5 Mbps all the time.
Average bandwidth consumption from residential customers is much, much lower than the burst demand. This is what makes oversubscription possible, and it is also why residential broadband can cost double-digits instead of triple-digits.
That 10x cost difference is supplied by the 10x oversubscription. That's what the caps are for. If you try to use a shared connection like a dedicated connection, then you should pay for it.