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Bandwidth Costs

Bandwidth Costs

Posted Apr 6, 2006 1:49 UTC (Thu) by butlerm (subscriber, #13312)
In reply to: Bandwidth Costs by smoogen
Parent article: The end of the Fedora Foundation

Internet bandwidth (properly measured) is not sold at a loss to home users. A typical home user with a 1 Mbit/sec connection consumes only a small fraction of that on average, even during peak hours. A typical ISP makes a pretty healthy margin on bandwidth when measured in terms of net cost per GB transferred, a margin that increases with economies of scale.

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Bandwidth Costs

Posted Apr 6, 2006 23:54 UTC (Thu) by smoogen (subscriber, #97) [Link]

It is sold at a loss if the total bandwidth was used for the entire month. It is the fact that most people do not that makes it profitable. Areas where more people max out the bandwidth there are losses. At the 200 kbit/s range the local ISPs I have consulted with see a loss with P2P and online movies. [The ISPs arent going to see 1mbit/s or 8mbit/s for a while since we are in the rural badlands of Qwest.]


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