Thread: Another speed?
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Old 25-08-2004, 12:53   #21
SMHarman
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Re: Another speed?

The math is very simplistic, compare 5 x 300 to 2 x 750 you have 3 more SACMs and installs to do, 3 more bills to process DDs to collect over 100% chance more of one connection being knackered, etc etc.

There are also network sunk costs which means that these numbers are also not so valid.

NTL supply more than the 300k product as that is what the market dictates, if NTL held a monopoly on BB then they would probably only carry 300k until their regulator forced them to provide different speeds.

How to TW make money on 3Mb, do they? Or is it a loss leading Brand Marketing that they have the fastest widespread consumer BB product in the country.

You also have to factor in contention and other wonderful considerations that 5 300k users will probably use more bandwidth more of the time than 1 user on a 1.5Mb connection, so assuming normal usage patterns you can probably put two 1.5m customers where 5 300k customers go making the numbers add up again, however when both want to use their connection to the max all the time that therory falls over.
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