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Skippy25

join:2000-09-13
Hazelwood, MO

Wait, what?

It cost more (4x in this case) to deliver an overage GB at a slower speed than it does to deliver that same overage GB at a higher speed?

elefante72

join:2010-12-03
East Amherst, NY
Actually it's 40x. At this speed tier (not mentioned in the article) Rogers charges $4 PER GIG over 20GB. So for $100 you would get 35 GB. Even in the higher tiers the Teksavvy overage rate is still 0.10.

So if you assume there is handy profit at 0.10c a gig, that means that Rogers can deliver this at no more than 0.05c a GB, probably less. If you look at the pricing $30-> 300GB that works out to $0.10c/GB. So I believe they build their models around people using a fraction of that 300GB, and that is where the profit sits on top of the bulk rate. But interestingly enough one can figure out what the cost to deliver really is....

The only downside to the 6 Mbps tier is that the upload is 256kbps, which is third world. You can't even stream Skype at SD at this rate. Other than that, they just watch videos, use VOIP, web, email so it is good for them. Eventually they will update that.



jmn1207
Premium
join:2000-07-19
Ashburn, VA
kudos:1
reply to Skippy25
said by Skippy25:

It cost more (4x in this case) to deliver an overage GB at a slower speed than it does to deliver that same overage GB at a higher speed?

Not that I am in agreement with any of this nonsense, but perhaps it has something to do with capacity expectations? If a subscriber is only expected to use the lowest possible tier of data, Roger's may not have the infrastructure in place to handle the capacity increase, and a greater investment would be required to manage and update the equipment needed for the unexpected overages.

In other words, 5GB is a much greater percentage with the lowest tier, whereas this is not as noticeable to the configurations using the more expensive tiers. If Roger's knows what to expect, they can properly build out the infrastructure to handle the load and appropriately charge for this amount.

I'm sure these pricing schemes are simply a result of greedy corporations with very little competition to worry about with any regulations bought and paid for while schmoozing with policy makers on some exclusive golf course that most of us can't afford to join.