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story category Product Spotlight - TekSavvy Solutions DSL Service
It's all in the family...
(old news - 01:05PM Friday Dec 07 2007)
tags: dsl · pppoe · prices · competition · business · hardware · bandwidth · install · stats · consumers · caps · TekSavvy Solutions Inc.
Welcome to the Product Spotlight -- a continuing series of articles highlighting individual products commonly used by our members.

In The Spotlight: TekSavvy DSL Service
Previously:
Verizon FiOS Spotlight
HughesNet Satellite Spotlight
Optimum Online Spotlight
Comcast HSI Spotlight
Clearwire Wireless Internet Spotlight
EV-DO Showdown - Sprint Vs. Verizon
Canadian Broadband - Cogeco Vs. Shaw
magicJack VoIP Service

See also: US Broadband Price Comparisons
Rock solid connection, speed of 6016Kb/800Kb....What else I can ask for $29.95? Teksvvy is the best ISP ever, strongly recommended!

It's no secret geeks and technophiles are a hard lot to please -- especially when it comes to their Internet service. However, once in a while an ISP does, in fact, appear to get things right. One ISP that seems to fit the bill is the Canadian provider TekSavvy Solutions, Inc. In this Product Spotlight, we'll take a look at TekSavvy's offerings and why the service gets such high grades in customer reviews here on Broadbandreports.com.






Company Info


TekSavvy Solutions Inc. - based in Chatham, Ontario, Canada - was founded in 1998 and started life as an Internet Development firm. According to TekSavvy president and CEO Rocky Gaudrault, due to the ups and downs of the development world the company was forced to try and find an alternative that would stabilize the monthly income -- thus the move into DSL service.

Says Mr. Gaudrault about his company:
We're in the industry to make a difference and change how the internet service world works. It's a family owned business that has certain ethics instilled within. You can only fake things so long if it's not truly the way you think. This is what separates us, as we don't see numbers or just things based on numbers when dealing with clients. It's about what they want and seeing how we can come to terms and both win.


Prices And Speeds


TekSavvy currently provides both residential and business class services in Quebec, Ontario, Alberta, and British Columbia. The provider offers several alternatives, including capped tiers, unlimited tiers, and dry DSL (Internet service without phone service or 'naked' DSL).

You can get unlimited service over Cogent or a premium service over the Peer 1 Network.

Cogent is a low-cost solution with cost being the focus as opposed to performance and reliability. Cogent is, however, a very large Tier 1 provider.

Peer 1 is a high reliability, high performance network who guarantees 100% up-time to TekSavvy. Peer 1 buys from multiple Tier 1 providers and prioritizes routes to the best/fastest path.

Speeds & Prices - Quebec & Ontario:

Residential DSL Service:
Premium (Capped) DSL Service over Peer1 Network with Cogent back-up (redundancy: roll-over on to Cogent should Peer1 ever drop):
• DSL Basic Service: 288Kbps download/288Kbps upload at $24.95/month with a 10GB/month cap
• 5 Meg Service: 5Mbps download/800Kbps upload at $29.95/month with a 200GB/month cap
• No activation fee
• Pre-Purchased Blocks of Bandwidth - $10/100GB/month
• Additional Bandwidth (If no pre-pay) - $0.25/GB/month
• Other Charges (if applicable): $25 if moving during the first month of the activation date, $25 for any speed change after activation, $4 for a static IP

DSL Unlimited over Cogent (no rollover/redundancy)*:
• DSL Basic Service: 288Kbps download/288Kbps upload at $24.95/month, no usage cap
• 5 Meg Service: 5Mbps download/800Kbps upload at $29.95/month, no usage cap
• No activation fee on either tier
• Other Charges (if applicable): $25 if moving during the first month of the activation date, $25 for any speed change after activation, $4 for a static IP

* As of January 1st 2008, the monthly price for the Residential Unlimited Package will be increased to $39.95.

TekSavvy's website advises that you should allow a minimum of 5 business days for the activation of these services.

Dry DSL Service (Service for residential locations with no active phone lines/no telephone number):
Premium (Capped) Dry DSL Line Service over Peer1 Network with Cogent back-up (redundancy: roll-over on to Cogent should Peer1 ever drop):
• DSL Basic Service: 288Kbps download/288Kbps upload at $24.95/month + Band Rate** with a 10GB/month cap
• 5 Meg Service: 5Mbps download/800Kbps upload at $29.95/month + Band Rate** with a 200GB/month cap
• One initial service charge of $19.99 on setup
• Charge of $19.99 any time Bell has to work on the copper lines
• Pre-Purchased Blocks of Bandwidth - $10/100GB/month
• Additional Bandwidth (If no pre-pay) - $0.25/GB/month
• Other Charges (if applicable): $25 if moving during the first month of the activation date, $25 for any speed change after activation, $4 for a static IP

Unlimited Dry DSL Line Service over Cogent (no rollover/redundancy):
• DSL Basic Service: 288Kbps download/288Kbps upload at $24.95/month + Band Rate**
• 5 Meg Service: 5Mbps download/800Kbps upload at $29.95/month + Band Rate**
• One initial service charge of $19.99 on setup
• Charge of $19.99 any time Bell has to work on the copper lines
• Other Charges (if applicable): $25 if moving during the first month of the activation date, $25 for any speed change after activation, $4 for a static IP

Band Rates:
Band A $7.25/month
Band B $9.10/month
Band C $10.22/month
Band D $10.98/month
Band E $15.91/month
Band F $16.20/month
Band G $25.10/month

** Band rates apply if you do not have an active phone line. The rates are based mainly upon age, distance and activity of the CO (Central Office) that you'll be connecting to. Think of the bandrate as kind of a rental fee in order to use Bell Sympatico's Copper without actually having voice service. Please see this entry in our TekSavvy FAQ for an explanation of Bands and TekSavvy's service.

As of January 1st 2008, the monthly price for the Residential Unlimited Package will be increased to $39.95. It can take between 5 to 15 business days to get activated with Dry DSL.

Speed and Prices - Alberta and British Columbia:
Residential DSL Service:
• 3.0 Mbps Service: 3Mbps download/1Mbps upload at $29.95/month + Band Rate with a 200GB/month cap
• 6.0 Mbps Service: 6Mbps download/1Mbps upload at $35.95/month + Band Rate with a 200GB/month cap
• Pre-Purchased blocks of extra bandwidth- $10/100GB/month
• Additional bandwidth (If you don't pre-pay) - $0.25/GB/month
• No activation fee
• Other Charges (if applicable): $25 if moving during the first month of the activation date, $4 for a static IP

TekSavvy advises it will take a minimum of of 5 business days for the activation of the services.

Residential Dry DSL Line Service (Service for residential locations with no active phone lines/no telephone number):
• 3.0 Mbps Service: 3Mbps download/1Mbps upload at $29.95/month + Band Rate with a 200GB/month cap
• 6.0 Mbps Service: 6Mbps download/1Mbps upload at $35.95/month + Band Rate with a 200GB/month cap
• Pre-Purchased Blocks - $10/100GB/month
• Additional Bandwidth (If you don't pre-pay) - $0.25/GB/month
• Activation fee of $39.99
• Other Charges (if applicable): $25 if moving during the first month of the activation date, $4 for a static IP

Band Rates for dry DSL service (British Columbia):
Band A $6.90/month
Band B $11.39/month
Band C $12.66/month
Band D $11.36/month
Band E $26.02/month
Band F $20.88/month
Band G $26.84/month

Band Rates for dry DSL service (Alberta)
Band A $7.04/month
Band B $9.58/month
Band C $11.04/month
Band D $10.48/month
Band E $16.53/month
Band F $14.18/month
Band G $16.20/month

It can take between 5 to 15 business days to get activated with Dry DSL. TekSavvy notes that they are not responsible for any internal wiring.

If you wish to check prices and speeds for business services, you can go to TekSavvy's homepage and click on the business offering of your choice listed there. There are some price differences and slight speed differences between residential and business service. The service for Business class DSL is seen with a little more sensitivity from the Bell side, so TekSavvy, in turn, can get quicker results. Aside from that, TekSavvy treats all accounts equally, residential or Business.

For your convenience, TekSavvy does provide a way to check your monthly bandwidth usage on their website. Also found on the website are instructions on how to set up various OS's to connect to TekSavvy (listed under "Operating System Solutions").

Installation And Hardware


Click for full size
Almost all reviews of TekSavvy left by customers here on BBR report either a very smooth transition to TekSavvy service, or a very easy installation:
Was with bell [sympatico] before, they charged me too much for internet, switched to teksavvy, smooth transition, good pricing and customer service.

I ordered the kit online using their registration system and it arrived 2 days later (not bad). I plugged in the filters, connected the modem to the telephone jack, turned it on and was happy to see the LEDs light up for line synch. I plugged in my wireless router, entered the PPoE account info, rebooted the wireless router and bang connection online and active. I gotta say that was the easiest DSL setup I have every done.

Switching from Bell's Sympatico was a breeze; 5 days to activate the connection, then just login and you're up and running. You can use existing equipment from Sympatico if you have it, or purchase a DSL modem separately.

Order to live time seems to average about 5 to 7 days, but there are reports of times as short as 1 day and as long as 21 days.

TekSavvy offers several choices of modems for sale or rent-to-own with their service on their site:
• Thomson SpeedTouch 516 - Purchase ($99) OR rent to own ($50 + $10/month for 6 months)
• Thomson SpeedTouch 546 (4 ports) - Purchase ($125)
• Thomson SpeedTouch 780 (Modem/4 ports/Wireless/Gateway) - Purchase ($164.99)
(Add $15 shipping if purchasing from Alberta or British Columbia areas)

TekSavvy also offers other supplies needed for DSL service:
Filters at $6.99/each
• Network Card - DFE538TX DLINK 10/100M at $29.99/each (This is not a wireless card)

As far as install kits go, TekSavvy preconfigures its modems for everyone so as to not need this. The company says it is done this way to ensure quality.

However, installation or service to connect your network is available. You may call TekSavvy for details.

TekSavvy also allows you to purchase your own brand of modem, your own filters, and your own network cards. However, which device to use appears to be the subject of some debate according to CEO Rocky Gaudrault:
Hehehe... this is a very well debated topic of late. One that's caused a few skirmishes. We've normally had the best success with Alcatel-type chipsets. The ST516 in particular has yielded the best return, from both consistency and reliability/durability. The problem with DSL seems to be based on distance. For instance, on short distances, the GNet BB0060 model performs equally as well as the ST516 (under 3KM) but it's starts flaking out when pushing 5Meg speeds over these distances or when doing multi-protocol type connection (VPN, etc.). We've also had many returns for failing hardware on these modems... the unit would just simply burn out. This model in particular has been the most problematic unit on the marketplace for DSL in Ontario/Quebec.


Service And Reliability


This is by far the best ISP I've seen here available in the National Capital Region. Not only is it fast and reliable it also has the best costumer service I've seen so far all business grouped together.

Click for full size
Though TekSavvy is not a Bell Canada reseller, they do purchase copper service wholesale from Bell. Bell then sets up so TekSavvy can
have the DSL connection sent back Toronto for internet access.

CEO Rocky Gaudrault explains the relationship this way:

BELL'S ROLE:
1 - Bell sets up the line card in the Bell Central Office so that it
works for DSL.
2 - The copper is setup to be billed directly to TekSavvy instead of the
end user (ie: TekSavvy assumes responsibility for the DSL connection instead of
the end user)
3 - The connection is pathed/backhauled back to Toronto and handed off to
TSI by recognizing the login name.

TSI ROLE:
4 - TSI receives the request in the Bell collocation area at 151 Front
in Toronto, sends it to TSI's authentication servers to see if good.
5 - Once cleared, the user is assigned an IP according to their
specification (either Premium or Unlimited)
6 - The Juniper ERXs hand-off the connection from the Bell racks, over
to the Peer1 collocation area
7 - Once received in the Peer1 area the IP traffic is sent to a variety
of locations through 151 Front depending on the type of traffic
requests... Out to the Web through Peer1, Cogent, T-Systems, Teleglobe
or Internap. Should the request need to be passed through TORIX, it
will then reroute to another room for hand-off.

TekSavvy has its own routing, which users say they find superior to Bell Sympatico.

Network and speed reliability are generally regarded as excellent by most accounts. Many reviewers talk of rock solid connections and very little downtime.

In order to allow users to receive the best service possible, the company will attempt to put a customer on an appropriate profile (maximum service speed). A higher or lower profile can help stabilize a spotty connection, or allow for higher speeds if possible. To have your line checked to see if a higher or lower profile may help your connection, you can ask in our TekSavvy Direct Support Forum, where TekSavvy officially provides tech support on our site.

TekSavvy's ToS is pretty much standard for the industry, with nothing especially worrisome to point out. You can read TekSavvy's Customer Agreement here.

A current issue of interest lately is the throttling and practice of traffic shaping by ISP's in order to battle 'bandwidth hogs'. Bell Sympatico itself recently admitted to throttling BitTorrent traffic:
Bell Sympatico has launched a solution to enhance the online customer experience and improve Internet performance for all our customers during peak periods of Internet usage with the introduction of Internet Traffic Management. There continues to be phenomenal growth of consumer Internet traffic throughout the world and Bell is using Internet Traffic Management to ensure we deliver bandwidth fairly to our customers during peak Internet usage.
As it stands, TekSavvy does not throttle or shape its traffic. An excellent, very interesting and telling interview with TekSavvy CEO Rocky Gaudrault on the subject can be found here at P2Pnet.net. The following is an especially interesting exchange on the subject during the interview and worth repeating here:
Ottawa Gal: What do they think about file sharing and file sharers?

Rocky: This is a loaded question. From an ISP perspective it’s a loose, loose [sic]. You have people who download/exchange for the right reasons; the problem is with those who don’t. What you have to consider is data has a finite cost, so someone downloading movies for free. Well, not quite. We’re actually paying for it in the end. To add insult to injury we then have to spend on the HR needed to receive and pass on copyright infringements and such. In Canada they currently have no leg to stand on, so as far as due diligence, we simply figure out who the individual is and pass the message on.

Ottawa Gal: Do you or will you ever cap, throttle or impose a limit on ‘unlimited’ accounts?

Rocky: We don’t plan to remove unlimited accounts but have just recently put plans to correct the high downloading as of the New Year. The pay per play strategy will have to become a more mainstream reality as, with people understanding how to exchange files and also with the increase in both streaming and online activities/speeds. You can’t help but have a correction.

Ottawa Gal: Bell-Sympatico forced you to remove the log-in only accounts. What do you think of this? Will they come back? Will you fight this?

Rocky: Bell Sympatico didn’t specifically/officially force our hand on this. The discussion came about with a few of the Bell management and the end result was to hold off on the login-only services we know how Sympatico will deal with abusive accounts. Our goal, in the end, isn’t to harm Bell, and if the login does so, we’ll pull it and work with them to reinstate it with mutually acceptable conditions. In the end, all DSL wholesalers are part of the Bell family in some shape or form as, if it weren’t for them, the consumer would not even have an option! The cable companies have made it abundantly clear that they’ll resist things to the end on letting others in. They’ve placed a rate template for wholesalers, through the CRTC, that doesn’t make sense, so DSL is the only way.
It is also interesting to note that Bell Sympatico can solicit TekSavvy clients. According to an entry in our TekSavvy FAQ: "Sympatico/Bell can solicit 3rd party ISP clients after a 90 day waiting period (Bell has an internal policy of communicating with all the households in Ontario and Quebec 4 times per year! - Might even be Canada wide)." However, judging from the number of positive reviews, I don't think there are many takers among those who use TekSavvy.

Tech Support And Customer Service


The customer service is incredible! And they are always courteous, as well as quite frequent here on {Broadbandreports.com}, so you can ask in whichever medium is better for you.

Click for full size
Both Bell and TekSavvy play a role in customer service and tech support.

Bell handles DSLAM/copper connectivity issues at the CO or house level. Bell also handles the connection setup at the CO/BAS level.

TSI works on behalf of the client to resolve issues with Bell. So, instead of the end user calling Bell for sync problems, TekSavvy would do it. TSI also handles Level 1 (or higher) tech problems for the end users.


Tech and customer support seem to be regarded as excellent by almost all reviews. Reviewers almost universally praise TekSavvy's tech and customer support for being extremely knowledgeable and helpful, and for going the extra mile whenever required to fix a problem. TekSavvy's support is also praised for being extremely accessible, such as the ability to get official tech support from the company in our TekSavvy Direct Support Forum, and also interact with TekSavvy's staff in our TekSavvy User Forum, where TekSavvy CEO Rocky Gaudrault is a member ( BBR member name R0CKY See Profile ) and frequent contributer.

A list of TekSavvy staff who officially provide support (both in English and French) on Broadbandreports.com in our TekSavvy Direct Support Forum and TekSavvy Users Forum can be found here.

A typical opinion of Teksavvy's customer support goes something like the comments in this review:
Talking with their tech support or even their customer service department is a breeze, efficient & simple. Every time I've had to call them, my phone calls were under 5 minutes, from the moment that I picked up the receiver, to the time that I put the phone down. I haven't seen this kind of service in a long time. This is what service should be like. Did I mention that their staff is actually are actually knowledgeable & are empowered to take care of the customers right when they phone? You don't even need to argue with them to the point where you have to speak to a supervisor & argue with him as well for 20 minutes for them to fix their screw-ups.
One might worry that as the company grows, this kind of up close and personal attention to tech support and customer satisfaction will disappear. Gaudrault answers that possibility in this Broadbandreports.com article: "We've gone out of our way to not only keep our techs in house, but also pay them a little more. As much as tech support is seen by most providers as a baseline expense, we don't view it that way. They are just as much of a selling tool as they are an expense in our mind."

The Bottom Line


Click for full size
Out of 212 total current customer reviews left here on BBR, TekSavvy has received 203 positive reviews, 9 neutral reviews and zero negative reviews. The company has a 95% satisfaction rating over the past 6 months and a 97% satisfaction rating over the past year, resulting in a BBR Gold Star Award. Almost all reviews contain positive comments on the steady connections and good speeds received. Customer service is deemed to be excellent, as is tech support.

The Premium service has very reasonable caps, and these are even offset by a redundant guaranteed connection. Not to mention the ability to purchase more bandwidth at a good price, and not get killed by overage fees if you use more than the alloted 200GBs.

The Unlimited service, while not backed by redundancy, proves to be a very reliable connection anyway, with nice speeds at a good price. This is made even more attractive by the fact that TekSavvy does not throttle or traffic shape.

While a tier in between the Basic and 5Mbps would be a nice addition, this is not possible. However, it is not TekSavvy's fault this is so. Bell only provides either the 'Lite' tier and the 5Mbps tier, no middle ground.

Judging from all the positive comments in the reviews and the fact that TekSavvy has up until now received no negative reviews, it seems TekSavvy has figured out how to do DSL right -- providing excellent all around service and leaving their customers very satisfied with the provider.

TekSavvy Solutions Inc.'s DSL service gets a 5 out of 5, and comes highly recommended to those lucky enough to be within the providers service area.

When asked how TekSavvy achieves the level of service they provide, and if they can maintain the high level of service and customer satisfaction as they grow, CEO Rocky Gaudrault had this to say:
We've had steady growth over the last couple of years. Of late, there has been a shift in user base that has made us adjust some of our service offering. We'd introduced the unlimited product about a year ago as a result of demand, but as of recent events with throttling/caps with the bigs (Bell/Rogers/Cogeco/etc..) we've had to reassess the baseline usage. On a two month span, the usage had grown by 50%, so to leave the price was unrealistic. All the larger players seem to have a bad habit of following one another's leads, which in this case has caused a mess in the marketplace.

[I'm] not sure if we can maintain it, but basically, we're in the industry to make a difference and change how the internet service world works. It's a family owned business that has certain ethics instilled within. You can only fake things so long if it's not truly the way you think. This is what separates us, as we don't see numbers or just things based on numbers when dealing with clients. It's about what they want and seeing how we can come to terms and both win.
Let's hope the TekSavvy family keeps marching to the beat of its own drum.


Resources


Our Resources*
BBR TekSavvy User Forum
BBR Unofficial magicJack Forum
TekSavvy User Reviews
BBR TekSavvy Official Direct Tech Support Forum
BBR TekSavvy FAQ
BBR DSL FAQ
BBR DSL Knowledge Base
TekSavvy Speed Test Result Archive
Provider Ratings Chart

Other Resources
TekSavvy Solutions Inc. Home Page
P2PNet.net - p2pnet talks to ISP TekSavvy
TekSavvy Network Status
TekSavvy Monthly Bandwidth Usage Checker & Tools
TekSavvy Support & FAQ Page

* Special thanks to TekSavvy CEO Rocky Gaudrault ( BBR member R0CKY See Profile ) for taking the time to answer questions about TekSavvy Solutions Inc. and its service

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Forums » Product Spotlight - TekSavvy Solutions DSL Service
view: topics flat text 
Post a:

TOPDAWG
Premium
join:2005-04-27
Midland, ON

Needs to be fixed

That review saying 6016 needs to be fixed. It's 5 and 80.

Bellunder

@bell.ca

Re: Needs to be fixed

He could be on a login only account.
dan991199

join:2007-10-01
St Catharines, ON

*****

just got online with TSI 3 days ago, representatives were very friendly, I'm happy with the speed, but most happy with the absence of a bit cap.
backness

join:2005-07-08
K2P OW2

Re: *****

TekSavvy is the best there is!

JasonD

@comcast.net

I predict......

TekSavvy will soon increase costs or restrict services (think Sandvine) as abusers jump on their cheap bandwidth. No way they can get away with charging .10 per GB for long.
backness

join:2005-07-08
K2P OW2

Re: I predict......

Take your opinions to cableco fantasy land...

How does your 401k feel on a losing buisness model?

Bellunder

@bell.ca

Seems bell has brainwashed everyone into thinking bandwidth is expensive. The opposite is true. Now i don't want to rehash this over and over again but look at the true cost of bandwidth to the provider not what some other company may try to rip-off the subscriber for.

JasonD

@comcast.net

Not True!!!

Give me one example of how anyone has stayed in business long term charging anything less than .50~1.00 per GB. Wholesale bandwidth costs are one thing, paying peoples salaries, equipment costs, benefits, electric bills, and yes stockholder dividends, and everything else required to run a business is quite another.

If this were true then my Comcast, yours and every other ISP could have Clickstream (and other data mining co's) underwrite their entire bandwidth costs and still have money left over. It just ain't reality.

Guspaz
Guspaz
Premium,MVM
join:2001-11-05
Montreal, QC
·Colbanet
·TekSavvy Solutions..


edit:
December 7th, @03:18PM

Re: Not True!!!

TekSavvy has a small number of employees, and no stockholder dividents (private company). They've tried to rely on automating and streamlining certain tasks (referring to their intranet software here). At 200GB, considering they have $9.45 of money to work with, 200GB costs them (a decent guess based on what Rocky has said) about $6 these days (possibly a bit less due to new transit coming online).

That leaves $3.45 for other expenses, if every customer used exactly their cap (most don't, it's still a bit of an average game).

Beyond that, charging $10 for 100GB is irrelevant, that doesn't incur additional expenses, and is a profit.

We can estimate, based on their best-case for users-per GigE from Bell, that they have currently perhaps 22 thousand customers. This means that if every customer were a premium user and used exactly their cap, TekSavvy would only have 78 thousand dollars per month (or 0.9 million per year) to cover employees, offices, equipment, and the Bell GigE lines (they have three, currently, at $1300 per month each).

Is that enough to cover their expenses? Maybe. I doubt it. But it's certainly not a money pit, and internet service is an averaging game; most of their customers don't hit their cap exactly, leaving more money left over with to work with.

They're not exactly a new company, remember. They've been in business for a decade. They haven't lasted this long by selling their service at a loss.

EDIT: Rocky hasn't published the data for November yet , but TekSavvy's average user (including both the 200GB capped Premium users, and the bandwidth hogging Unlimited users) was 36GB per month, well short of their 200GB cap. That's how oversubscription works.

JasonD

@comcast.net

Re: Not True!!!

Alright, I give. I don't see how anyone can afford to do it though, you really have to depend upon people let most of their paid up bandwidth go unused. It's a model that just wouldn't fly here in the US.

Good luck to ya.

adfasdas

@rogers.com

Re: Not True!!!

said by JasonD :

Alright, I give. I don't see how anyone can afford to do it though, you really have to depend upon people let most of their paid up bandwidth go unused. It's a model that just wouldn't fly here in the US.

Good luck to ya.
maybe right now they cant or maybe they can.. it all comes down to is telling the truth and being a good and Faithfull ISP to the Customer(s).

now the more Customers they get because of being Truthfull the more money they get coming in..

this is the real way of Running a business. you gotta lose money to make money.. and this is what Other ISPs are forgeting..
Mark Rejhon

join:2004-02-02
Ottawa, ON
·Magma Communications


edit:
December 9th, @04:54PM

Bandwidth costs are a delicate balance between many things:

- Transit over Bell's equipment (the DSLAM's, etc) to the ISP backbone. Bell charges for this, and I think this is a major part of Teksavvy's costs.

- The backbone itself. Cogent is famous for pretty cheap bandwidth, and is one of the tricks Teksavvy gets by so cheaply. It's not always high quality, but pretty good and Sympatico/Rogers have often performed worse. To boot, some of us go with PEER1 (myself included) which limits to 200 gigabytes (they just increased from 100 gigabytes)

- The bitrate per second. Teksavvy is limited to 5 megabits per second, which means 1000 downloaders at full blast won't stress infrastructure as much as if they were all running at 16 megabits per second.

- The bandwidth per user. 1 terabyte of bandwidth split to 1 million users is much more expensive than 1 terabyte of bandwidth split to 1000 users; because of the extra equipment/ports/routers/etc to route the same amount of bandwidth to more people. I think Teksavvy succeeds in economies of scale of high bandwidth and low overhead on a per user basis.

- The average bandwidth per user, and how often they download at peak. This factors into their bandwidth purchase agreements.

- The percentage of bandwidth abusers. If you have few bandwidth abusers, you can survive offering unlimited. Some subscribers Teksavvy lose money on, which needs to be balanced out by profitable users (probably me -- who use often less than 5 gigabytes per month, and don't make many tech support calls, once past the setup related calls at the beginning and the line speed changes until I was reasonably satisfied, anyway). As an unlimited ISP becomes popular, it becomes a magnet for bandwidth abusers, so it can be a costly move. But they are surviving and compensating by slightly raising the price of the unlimited plan, while keeping the price of the capped plan the same.

- Teksavvy is a privately owned company, so they don't have as much shareholder pressure -- they are happy with 5 or 10% profit if they can manage finances well, or a privately owned company may concentrate on paying dividends instead of shareprice growth, rather than trying to shoot for bigger profit margin like a publicly owned company may. They didn't sacrifice subscriber quality for shareholder growth.

- Moore Law in bandwidth cost drops. They are falling something approximately 50% per year 'behind the scenes'. We are recently having a slight bandwidth crunch (fiber glut is over, YouTube comes onto scene, over a million fiber-optic users in USA, etc), but infrastructure is being upgraded so Chicken Little's are wrong, our Internet will just temporarily slow down like when the first cable/DSL users started coming online en-masse, but they upgraded the infrastructure in response. The same thing is happening/will happen again, and once that happens (after the surge of capital costs reasonably paid for), our bandwidth costs fall even further. Just look at Japan and South Korea -- much cheaper bandwidth; they are far ahead of us.

- It was true ISP was not profitable at $0.50 per gigabyte, but recently, more and more ISP's worldwide have found small profit in being cheap per gigabyte. Falling costs per gigabyte is now making it possible. But the big ones are resisting this trend.

Frozty2k

join:2002-04-21
Oakville, ON
·Cogeco Cable
·TekSavvy Solutions..

They can't get away with charging .10 per GB? They make a profit off of that, and AFAIK the more transit an ISP buys the better deals they can get? So it can only get better for them no?

And yes if they can make a profit on .10$ makes you wonder about cogeco who have overages set at $10/GB.

Guspaz
Guspaz
Premium,MVM
join:2001-11-05
Montreal, QC
·Colbanet
·TekSavvy Solutions..

Sure they can, because they're making a profit at 10 cents per gig. TekSavvy has told us (as they tell us many things that most ISPs keep secret) how much they pay for bandwidth, and it's 3 to 5 cents per gig on average. There is no concern that higher usage will cause any issues as you describe, because they've set their caps of 200GB at a point where they won't lose money on customers.

The unlimited service is, perhaps, a cause for concern, and this is what prompted the recent increase in price on the Unlimited service. Bell charges $20.50 per line, and TekSavvy charged $29.95 for the unlimited service. This ~$10 wasn't enough to pay for unlimited user bandwidth with the increasing usage, so they increased the price on it.

They're trying to keep the unlimited service viable, but it's obvious that the premium service is just far safer for them on a cost level. This is reflected in them doubling their caps to 200GB to encourage more users to switch from unlimited to premium.

JayMan
Whoot
Premium
join:2002-06-05
Earth
·TekSavvy Solutions..
·ELECTRONICBOX

said by JasonD :

TekSavvy will soon increase costs or restrict services (think Sandvine) as abusers jump on their cheap bandwidth. No way they can get away with charging .10 per GB for long.
They just increased the prices to deal with this exactly issue. So it's done and overwith already. And they would never restrict services.
TheMG

join:2007-09-04
Edmonton, AB
·TekSavvy Solutions..
·800Hosting.com
·Dreamhost
·TELUS
·Shaw


edit:
December 7th, @03:52PM

said by JasonD :

TekSavvy will soon increase costs or restrict services (think Sandvine) as abusers jump on their cheap bandwidth. No way they can get away with charging .10 per GB for long.
You obviously haven't frequented the TekSavvy forums here on DSLR, if you had, you wouldn't have posted what you just did.

They have NO PLANS to implement any kind of throttling or blocking, they don't even consider the thought of going down that route. This has been said by the CEO himself, who posts on the forums quite regularly.

They are very open about everything they do. In fact, they posted (in the forums) statistics which show the average usage and costs of the unlimited service, and explain why they are increasing the charge for unlimited service this January.

Drop by once in a while and look at what's going on, else please refrain from posting what you know nothing about.
Omr

join:2004-01-10
M1S-1B3

Alot of Info

Wow what a review ... current TSI user and I still think that was information overload ... but very well done indeed.

What is important is to think of the now, TSI is probably the only one standing up and saying we don't do throttling and cap enforcing (depending on plan). All the big players say they are the fastest/ reliable/ generous to those looking for high-speed downloads on print and ad, but not in reality.

Anyways I recommend TSI to all that are stuck in limbo in the Rogers/ Bell/ Telus traps. To those in Atlantic Canada keep your fingers crossed TSI might just come over to your neighborhood.

jessegr

join:2005-03-05
Gatineau, QC

Re: Alot of Info

If they move to a Montreal pop i would be sold instantly.

JayMan
Whoot
Premium
join:2002-06-05
Earth
·TekSavvy Solutions..
·ELECTRONICBOX

Re: Alot of Info

said by jessegr See Profile :

If they move to a Montreal pop i would be sold instantly.
POP = Dialup

With DSL and Bell it doesn't matter where they are located.

Taylortbb
Premium
join:2007-02-18
Waterloo, ON
·TekSavvy Solutions..

Re: Alot of Info

said by JayMan See Profile :

said by jessegr See Profile :

If they move to a Montreal pop i would be sold instantly.
POP = Dialup

With DSL and Bell it doesn't matter where they are located.
It does still have an effect. Right now if he was to access a Montreal server his request would be routed to TekSavvy's equipment in Toronto then back to Montreal. Montreal to Toronto and back isn't very far in internet terms and normally isn't an issue, but I can't speak for what jessegr does that may be affected by the additional latency.

nydwarf1

@gpc.ca

Review

Awesome review of an awesome, kickass company that is out to show everyone how an ISP (and any other company for that matter) should operate and treat its customers. BRAVO!

macedon
Jazz me baby
Premium
join:2006-02-12
Canada
clubs:

i am 100% satisfied with Teksavvy

this spotlight was long overdue
but i guess its better to be late then non-existent

My switch was problem-free, no downtime whatsoever...
Connection is rock solid and ping better then before, and all at $31 including taxes. This cant get better.

Q: Am i satisfied?
A: You bet your bottom dollar i am.



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