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Thread ID: 18476 2002-04-25 22:40:00 Jetstart Guest (0) Press F1
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45660 2002-04-25 22:40:00 I'm looking for an explaination as to why all broadband internet services are being data-capped:
What are the expenses ISPs face with respect to bandwidth? What are the fixed costs, and what are the costs that vary with bandwidth usage?
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45661 2002-04-25 23:36:00 This is a cut and paste from another forum that explains, so all credit goes to the original posters:

Phantom
teh rox

posted 23rd April 2002 04:22


quote:
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Originally posted by Scandalous
does anyone here know how much a MB of int traffic costs?
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The only person who pays per MB is the consumer - ISPs etc pay for capacity / bandwidth.

The way this works and the why this works are as follows: -

Consumers, as a rule, cannot afford to buy pure end-to-end bandwidth. Why? Well, a 64Kb circuit costs rather a lot of money - a lot more than you pay for your 128Kb connection.

Consumers, as a rule, don't need end-to-end guaranteed bandwidth. Why? They don't need to use it 24/7.

So how then?

An ISP buys bandwidth (at those large prices I hinted at earlier) and then oversells it - that is, it sells much more capacity than it actually has, knowing that most people will use it 'off and on', as opposed to 'all the time'. This works best on a large scale - the more customers you have, the better your odds that your average number of users per pipe will work out in your favour.

That model only works when customers have a cap. If you say 'download as much as you want - we wont limit you!', eventually someone will. Enough of those someones and you got yourself a problem - your international capacity is being saturated. ala Xtra.

This is the same reason that, on a profitably configured network with few/no leechers, performance degrades a little at peak times - most people are using it, the pipe becomes a little congested.

It's the same way international airline flights work - they oversell seats by a few, knowing some people will not turn up. If they did, they'd be screwed

So, what now?

Why not have a plan that allows unlimited leeching off peak (when the expensive pipe is underutilised) and zero connectivity during peak times? The customer is authorised to leech his m4d pr0n and juarez during the day and then booted off between 6pm and midnight?


__________________
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Game & Watch? or perhaps Superman comics?



IP



sidbo
Big A Little A

posted 23rd April 2002 04:24

So following that link Scand, there's a price in there of 250 to 500 dollars for a 64Kb circuit, per month.

Take the median @ 375, so to service 1 leecher going 24/7 takes 2 x 64Kb circuits, costing 750/month. For which you are billing that user say $40 a month.

750 !< 40
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45662 2002-04-25 23:44:00 One of the reasons that Telecom have put a data cap on Jetstart is because some people were using there computer as servers to host there own websites. Guest (0)
45663 2002-04-26 02:53:00 Unless those users were getting hundreds of hits a day, it would barely have made any impact on their useage. Guest (0)
45664 2002-04-26 10:18:00 Right first off please understand Telecom is not capping the International usage on Jetstream Starter (formally known as Jetstart). The ISP does. I.e. Xtra or Paradise.

Furthering on the excellent answer above, further information is also needed to be added into the equation.

The main reason is the cost of buying international bandwidth. New Zealand as a whole does not as a country demand enough bandwidth for the powers that be to negotiate a cheaper rate for International bandwidth. Nothing to do with capacity on the Southern Cross cable as some have suggested. The Bandwidth on this cable is hardly being used.

This is very ironic, but the only way we can negotiate a cheaper rate for International bandwidth is if the demand is there. The only way the demand can be there is if a lot more people jump onto the broadband Internet highway. (And As I see it the only way that?s going to happen is if the price is right- and the communication from Telecom and the ISP?s its not likely for a while).

With a data cap on International traffic on Jetstream Starter it is aimed at the bandwidth hogs who do get great value for money (See reasons in answer above for why)
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