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Forums » CRTC Debates Bell Canada Throttling » Throttling is only viable if pricing model is incorrect...
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Anti-competitive »
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espaeth
Misanthrope
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edit:
April 23rd, @02:47PM

Throttling is only viable if pricing model is incorrect...

This whole situation screams that something about the pricing model Bell is using for wholesale DSL is off. Internet backbone carriers are always happy when you use larger amounts of bandwidth, because more bandwidth = higher service fees, which in turn generates revenue to fund additional network growth. The larger pool of capacity you have, the more economical it is to operate. (higher capacity when you are billing based on usage is the gift that keeps on giving) We're not talking about the last mile where there are legitimate technical restrictions limiting the growth of bandwidth -- you can scale an ATM cloud to be whatever you need it to be.

Usually companies only turn to throttling when they are forced to shoulder increasing bandwidth demands without compensation. This happens occasionally with backbone carriers, but in those cases one carrier will decide to quit playing, take their Internet and go home.


chronoss2008
Premium
join:2008-03-29
just look at the price of 100MB in germany or sweden then tell me wtf is wrong and anti-competitive.
WHO in caanda would want to given the current climate try and start a FULL ISP,
NO ONE, cause the others have such a lock on hte market

backness

join:2005-07-08
K2P OW2
reply to espaeth
ya but resellers pay bell 2/3d's of the money they recieve from customers to keep the pipes flowing

(~20$) per sub per month


espaeth
Misanthrope
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It doesn't matter if the 3rd party ISPs paid Bell 99.9% of what they take in from customers. Either the money covers the cost of operating the network, or it doesn't. If it doesn't you have two basic choices: adjust the traffic to match the price, or adjust the price to match the traffic.


DJ MASACRE

@gc.ca
reply to espaeth
See the Teksavvy Forum. Its all there.

One under ISP of BELL being throttled.


Devils Advocate

@bell.ca

 reply to espaeth
"...adjust the traffic to match the price, or adjust the price to match the traffic."

Since both Sympatico customers and 3rd party resellers pay full price for bandwidth they're supposed to have (but never get), then the THROTTLING would be such an "adjustment" that should never have been made.

backness

join:2005-07-08
K2P OW2
·Rogers Hi-Speed
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reply to espaeth
are you kidding me?

you think it costs more than 20$ per sub to maintain 10 year old DSL equipment?

How can they sell this product in other countries for almost that price?

Remember this is just maintenance costs and some minor upgrades (which bell is refusing)


espaeth
Misanthrope
Premium
join:2001-04-21
Minneapolis, MN
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Maintaining the DSL equipment is only part of the equation; the ATM network that connects everything together is a major cost as well.

Just to provide a reference for pricing, business customers paying for private ATM network VCs (admittedly more expensive due to design) are paying $200/mo for T1 access per site plus $200/mo for only 256k ATM frame port services on those lines. PVC costs are added onto that depending on the level of service requested (largely variable bit rate).

ATM isn't as cheap to build out as other straight IP technologies, because the interfaces need additional SAR (segmentation and reassembly) features to deal with breaking traffic down into 53-byte ATM cells.
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