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d4m1r
join:2011-08-25

d4m1r to Samgee

Member

to Samgee

Re: Do we really need unlimited monthly usage?

said by Samgee:

said by d4m1r:

You're approaching it wrong...Their costs have nothing to do with usage per say, but capacity. Simple example, if I download a 100GB file on TSI @ 2am, let say it costs them $5.

Any bandwidth used off peak costs the provider nothing. I see where you're example is headed, just wanted to make sure you understood where the costs are. Peak capacity, that's it.

No, it doesn't cost them nothing....They still have to pay, just a lot less (ex: transit costs). But yes, it is not 2:1...
Samgee
join:2010-08-02
canada

1 edit

Samgee

Member

said by d4m1r:

said by Samgee:

said by d4m1r:

You're approaching it wrong...Their costs have nothing to do with usage per say, but capacity. Simple example, if I download a 100GB file on TSI @ 2am, let say it costs them $5.

Any bandwidth used off peak costs the provider nothing. I see where you're example is headed, just wanted to make sure you understood where the costs are. Peak capacity, that's it.

No, it doesn't cost them nothing....They still have to pay, just a lot less (ex: transit costs). But yes, it is not 2:1...

No, it really does cost them nothing. All the costs you're thinking of are built into the per user fees and peak capacity costs. Every single bit of data transferred off peak is free, bought and paid for in the other costs. If there is no usage off peak, it costs the exact same as if peak usage happened 24/7.

*edit* If they have their own costs that are based on usage that they haven't told us about, then I will be wrong in the above. From everything that's been presented to us, the costs are contained in the peak numbers and per user fees.

d4m1r
join:2011-08-25

d4m1r

Member

said by Samgee:

No, it really does cost them nothing. All the costs you're thinking of are built into the per user fees and peak capacity costs. Every single bit of data transferred off peak is free, bought and paid for in the other costs. If there is no usage off peak, it costs the exact same as if peak usage happened 24/7.

*edit* If they have their own costs that are based on usage that they haven't told us about, then I will be wrong in the above. From everything that's been presented to us, the costs are contained in the peak numbers and per user fees.

Ok, so you are agreeing with me I guess lol? By saying it's completely free implies that TSI never has/never does pay for off peak traffic. I said they do, but not as much. And like you said, maybe they don't have to pay on a per usage basis (like how transit costs are usually billed), but they include the costs they incur from off peak usage with other things. That still means they are paying for it, although maybe not 100% directly....

Guspaz
Guspaz
MVM
join:2001-11-05
Montreal, QC

Guspaz

MVM

Both CBB and transit are billed at peak usage, so anything less than peak incurs no additional costs. So long as off-peak times don't surpass peak bandwidth, it costs TekSavvy $0 extra to allow unlimited off-peak (apart from what they paid for the development time to modify their usage tracker to support it).
Samgee
join:2010-08-02
canada

2 edits

Samgee to d4m1r

Member

to d4m1r
said by d4m1r:

By saying it's completely free implies that TSI never has/never does pay for off peak traffic.

They pay for traffic to happen, not how much happens. That's the most important distinction. The only time costs would increase would be if that off peak traffic ever passed the peak traffic thus becoming the new peak. Provided off peak traffic remains below the peak bandwidth threshold the costs are $0 on top of existing costs.

Now, caps are still being used as a way to control peak time usage since people will be less likely to cap out their service at peak if they know they have to be careful how much they use each month, but it's an artificial constraint since that doesn't guarantee the customer won't have as much impact on costs as a user who downloads non-stop. That is the only time usage would come into costs, when it results in peak time usage going up increasing the bandwidth needs.