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Originally Posted by ianathuth
No guarantees can be given on any contended service, capped or not.
What I am trying to do is drill home the message that no ISP can continue to allow customers to have the very high usage levels that some users currently have and maintain prices at todays levels. Something, somewhere has to give.
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Sorry I phrased it wrong, I meant if eg. a uncapped 3mbit service is in my area from rival isp, and burst speed on that average's lets say 2.5mbit at 9pm and burst speed on NTL capped 3mbit averages say 1.2mbit wouldnt NTL look a bit stupid? So I meant they would need to garantuee better contention then the likes of AOL who are uncapped so their argument of that it improves QOS sticks.
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Originally Posted by ianathuth
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?
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The thing is you will never get a 100% high user base and also you would have to be a very small isp to have all your customers using 2mbit 24/7, I keep hearing the 24/7 argument which is an exaggeration of reality the truth is NTL probably have a fair few users who use above 40 gig but they dont like it and use their excuse we dont want 24/7 leechers.
But to answer your question. In the extremely unlikely event my entire customer base download's 600gig a month, it would take 50 to fill the pipe and they would be charged somewhere between £100-150 per month just for the raw bandwidth, their would be more on top obviously to factor in other costs, I dont know the full costs of providing a broadband connection, I am just arguing for bandwidth costs.
Now looking at ukonline situation they know not every customer is going to use 500gig its a great selling point so will draw in low usage customers along with high usage customer's, they will probably have a higher proportion of high usage customer's then the average isp but I already mentioned they can afford this because they dont buy their bandwidth from BT so hence its not at inflated prices.