|reply to Mojo 77 |
said by Mojo 77 :A 768kbit/s line probably costs them more than a 10mbit/s line. The 768kbit/s line is likely rural, or at least a long loop suburban line, and longer loops are never going to be as cheap to maintain as shorter ones. Additionally, the 768kbit/s line has a lower margin even after they raise prices. My old 10-15mbit/s service was $60/mo and undoubtedly provided them with a higher margin than a $28 1.5mbit/s or less circuit.
a 768 kbps line costs Verizon hardly anything. Certainly not worth a $5 hike.
The major expense here is the maintenance of the copper plant. Backhaul bandwidth is trivial, and for that cost there is likely very little difference between a 768kbit/s line and 10mbit/s one. Particularly when you account for the fact that the vast majority are idle at any given time, even in the IP video era.