NZSimplicity:

Ragnor:
You need to consider the price SXC mentioned in that ComsDay presentation is only for the SXC cable and does not include:
- How data it gets from your home to your ISP and from your ISP to the SXC cables
- Peering/interconnection, eg: the cost of getting the data/traffic somewhere else after it arrives at the SXC off load in San Jose
- All other ISP costs

While that is true, when places like slingshot have 250GB data for $70 a month plan, it kinda makes you think a little as to exactly what it IS really costing the ISP's..
Sure, I realise that slingshot is probably hedging their bets that not everyone will use up all 250GB in a month, but still, when snap are charging $145 for only 100GB of data with it costing another $120 to get another 100GB something seems very very wrong with the charges.

Beccara:Everyone seems to think all ISP's make bucket loads of cash and just throw a dart to pick prices.?

Ragnor: Slingshot's business model appears to be lowest price, large data caps (or none), try to cache everything locally and run highly contented international transit.

This seems to appeal to a fair amount of?people so it's probably working ok for them.?

Beccara: Me and my boss were having a debate about this the other day, He compared the ISP industry to others and basic economic theory. ISP space is the only space we could think of where the expectation of quality and quantity goes up every year but the price keeps dropping.

Beccara: Me and my boss were having a debate about this the other day, He compared the ISP industry to others and basic economic theory. ISP space is the only space we could think of where the expectation of quality and quantity goes up every year but the price keeps dropping. Power prices went up 10+% last year and broadband costs went down around 2%, The price of food and petrol and living in general has gone up along with inflation over time yet people keep demanding more and more while paying less and less.

If everyone wants 30+mbit uncapped to their door then you can, Buy CIR and a tail circuit and you'll also get great customer service as well but it'll cost you $3k+ a month. Every consumer needs to get a little perspective, We all cry out when petrol prices go up and yet we still cry out when broadband prices DONT drop

graemeh:

Beccara: Me and my boss were having a debate about this the other day, He compared the ISP industry to others and basic economic theory. ISP space is the only space we could think of where the expectation of quality and quantity goes up every year but the price keeps dropping.

How about?home electronics, our 37" LCD TV cost around $2500 when we bought it, now we could probably get the same TV for $1000.

Computers are another example, the specs just keep going up and up and the price either stays about the same or drops.

mattwnz:

Beccara: Me and my boss were having a debate about this the other day, He compared the ISP industry to others and basic economic theory. ISP space is the only space we could think of where the expectation of quality and quantity goes up every year but the price keeps dropping. Power prices went up 10+% last year and broadband costs went down around 2%, The price of food and petrol and living in general has gone up along with inflation over time yet people keep demanding more and more while paying less and less.

If everyone wants 30+mbit uncapped to their door then you can, Buy CIR and a tail circuit and you'll also get great customer service as well but it'll cost you $3k+ a month. Every consumer needs to get a little perspective, We all cry out when petrol prices go up and yet we still cry out when broadband prices DONT drop

Agree. Although the widespread introduction broadband has meant that ISPs could raise their fees, over dialup pricing. It wasn't that long ago when paying $30 per month for the internet was a lot of money, although that was when dialup was at it's height.