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djrobx

join:2000-05-31
Valencia, CA
kudos:1
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reply to DaneJasper

Re: Great Deal -- Beats $100 for same thing from S

Since you are into posting usage figures, I'm very curious about what kind of impact you're expecting to see from customers who go for your 6mbps deal. I've said many times that quadroupling available bandwidth should not come close to doubling the traffic that one consumes. However, these 6mbps circuits give a lot of potential for some serious bandwidth suckage!

For instance, when I had 4000/384, the total amount of I transferred isn't much different from what I transfer with 1500/128. I just did the same operations faster. But there will be people that just download everything in site because they can. And, it would only take 24 people downloading at full speed (~5mbps) to max out one of those 120Mbps OC-3, as opposed to the 92 (~1.3mbps) that it takes now. Can you afford to upgrade more rapidly to meet 6mbps demands (if they are actually much greater), even with what's seemingly a much lower margin?

Just very curious to hear what you think, since not too long ago you posted in a thread about "buying 6 mbps of transit" ( »Why is 1.5-6/384 service so darn expensive ) Have transit costs gotten cheaper to make such a deal work out better now? Sorry to ask so many questions, I just am very interested to find out what's triggered the sudden "generosity" and price drops from broadband providers in general. Thanks!
--
\\ROB - a part of the SCB local network


DaneJasper
Sonic.Net
Premium,VIP
join:2001-08-20
Santa Rosa, CA
kudos:7

It's a combination of two items. The first is that, as you point out, most folks don't consume more just because they have more. They get done faster whatever they were planning to do, but generally consume a fraction more bandwidth.

The average DSL customer on our network today uses about 1% of the bandwidth of their link. If this were to double with 6.0Mbps customers, that would still be a small amount of bandwidth.

The other factor is that inbound bandwidth has gotten really cheap to pick up at big transit facilities. Through our interconnections at various facilities in the Bay Area, we can get inbound megabits for silly cheap prices. Of course, we've still got to have an appropriately sized ATM uplink, and keep that from filling up, so there's some management to be done there.

Also note that SBC-ASI ATM OC-3 circuits are limited to 6000 PVCs - but with 6000 typical DSL customers on the link, we're finding that the bandwidth of the OC-3 (which should be 155Mbps, but is really 120Mbps after all the ATM overhead) generally gets utilized at less than 75%, even at peak!

The combination of these factors along with introductory promotional loop pricing from SBC-ASI is allowing us to get down to these new prices.

Hope that helps!

-Dane


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