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Originally Posted by patchwork
I've never seen any proof of that!! How do you know how much money they make on customers?
I rent some web servers, I can get a server for £40 per month, included in the price is 1200GB of bandwidth per month, that works out at roughly 3p per gig. (I'm sure NTL will pay a lot less, probably closer to 1p per gig)
You "claim" a customer using 10GB per day causes NTL to loose money. 10GB * 3p per gig = 30p per day, or £9 per month in bandwidth charges. (probably closer to £3 per month)
So that customer costs £9 per month plus the cost to send a bill, plus electric cost, plus equipment hire costs etc...
Apart from a slight fluctuations in bandwidth charges all customers cost the same, same electric cost etc.. apart from people that call customer service a lot, these customers cost the company the most.
Pete
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You seem to have it all worked out.
If you look at ADSL companies that charge for bandwidth over their cap it tends to be £1.50 to £2.50 per Gb.
If you look at Plusnet
http://www.plus.net/support/faq/broa...sage_faq.shtml you will see
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Very few ISPs offer an uncontended (1:1 contention) and therefore unlimited product. Where these products are available, they are priced in excess of £300 a month. This reflects the costs associated with a customer utilising a high level of data transfer.
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Common sense dictates that no ISP can sustain having customers whose usage is in the hundreds of Gb per month as the cost of having them is several times the subscription they pay.
What would you say to NTL removing all usage restrictions and uncapping the speed that their cable modems are running at? What do you think would happen?
What do you think using the new 1Mb, 2Mb and 3Mb tiers would happen if every NTL customer went on line at exactly the same time and they all wanted to download a 100Mb file?