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Kanata, ON
·Start Communicat..
reply to rocca

Re: CRTC Decision

said by rocca:

Add a couple zeros after that (no decimals) and we're all set!


The math for this isn't quite as dismal as we've all been making it out to be, though. Even with a lot of subscribers who want to use tons of prime-time bandwidth, statistical averaging kicks in and helps keep things affordable.

Not every "300GB prime time" account is going to be streaming every night, or even at the exact same instants when they are.

Throw enough of them into a large enough pool, and peak bandwidth used will be quite a bit below what one gets with simple multiplication. That's why we all use retail ISPs rather than dedicated bandwidth connections. We know we don't need it 100% 24/7, or even 100% 6/7 during prime time. So we're willing to share to a degree by pooling with others.

And that's the business model for an ISP, too. So let's not just roll over and play dead when people toss out 2X and 3X current rates as "necessary."

The recent CRTC rate adjustments for Rogers only increased costs by perhaps 10% overall. I don't know how much ISPs may (or may not) have been "underbilling" on Rogers, but let's say they guessed low by another 10%. So this ought to result in no more than a 20% increase in retail rates for plans very similar to what we have today, or for plans that only meter prime-time usage.

It'll be interesting to see what the various ISPs come out with for rates. I don't expect Teksavvy's rates for Rogers to change by very much, if any, until they go aggregated, because their costs haven't gone up by more than a few percent.

In the past, Start.ca rates were similar to Teksavvy's rates, but with a slight discount. That will change, since Start.ca is already on the more expensive aggregated setup, which just got 10% more expensive than before.

But 2X or 3X current rates? No way.