Why is our internet still so expensive?

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Ragnor

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#248186 18-Aug-2009 14:40

rossmnz: I realise that ISPs have labour costs, hardware update costs, Ferarris dont run themselves, but surely SURELY in this ever changing market direct drops in product pricing should be passed on immediately to consumers.

World class broadband at decent prices is not actually asking that much. Its extremely do-able even here in NZ

If you believe it's easy and cheap to run an ISP why don't you start one up? I won't hold my breath.

raytaylor

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#249458 21-Aug-2009 15:35

The prices quoted in the article were for a 5 gigabit pipe.

5 GIGABITS!!!

Thats a HUGE pipe. I wonder even if telecom / xtra require that amount?

5 Gigabits equals about 630 megabytes a second. If the pipe were being used 24/7 then it probably would work out about 41c per gigabyte for the buyer of this pipe. But who has the money to buy in such scale?

At 41c per gigabyte, the pipe would be costing $660,000 per month. 660 thousand dollars!

162,000 customers would be required to use 10gB each to use the pipe at 100% capacity. Thats a budget of $4.07 per customer for data supply - probably double that because it would be slowing to a crawl in the evenings if they put that many sharing a 5gbit connection

Anyone know what sort of money an isp can spend on data per customer for a 10gb fs/128k connection sold for $50 after chorus take their cut?

Ray Taylor

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Ragnor

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#249467 21-Aug-2009 15:51

Yes but all of your customers are not using sustained bandwidth 24x7 so it's pointless trying to work out a price per GB that way, hence why I was wondering what factors they used to come up with that price per GB.

This Australian ISP has around 100,000 customers and has made some overview bandwidth graphs publicaly available.

http://public.mrtg.exetel.com.au/bwsummary/total-supplier-bandwidth.html

raytaylor

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#249511 21-Aug-2009 17:57

that thar fancy isp uses peerapp as well as akamai

Ray Taylor

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