[ian@huth]

Originally Posted by Chrysalis

Read the BT article, the problem there is BT Wholesale have moved the goalposts, their old method worked fine but then they suddenly changed things around to give less for the £.

"BT last week put forward three possible price points: £0.33, £0.45 and £0.58 per kilobit per second per month. But ISPs claim that these are all far too expensive."

The cheapest price point above £330 per megabit which is an atrocious price, I can get bandwidth cheaper then that on a 100mbit pipe as a consumer, the fact its been offered to that price at wholesale is an example of greed in our country, BT must be selling that at a 70%+ profit margin. For wholesale level I would guess a more fair pricepoint on a 155mbit pipe would be somewhere around £125-150 per megabit, if you think thats not profitable then I can tell you now I can get a 100mbit pipe in the UK as a consumer and pay less then £200 per megabit and I know a lot of isp's pay way under that.

To summarise BT are infalating the cost of bandwidth for ADSL playing similiar game to NTL, ukonline isnt subject to this problem because it doesnt use BT centrals and thats how they can offer 500gig.

Right, say that you set up as an ISP with your "100mbit pipe that costs you £200 per megabit". You take on all the high usage customers that try to max out their connection 24/7 and give them a 2Mb service. How much do you have to charge each of them to break even and without any deterioration in their service?