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Originally Posted by ian@huth
I think that the point being missed by a lot of people is that most ISP's are selling broadband packages at below cost or with a very small profit margin in order to build up market share. At the moment speeds are increasing rapidly and subscription charges are lowering. You have to question whether these are sustainable services at the prices being offered today, especially if they are offering unlimited traffic. The faster that speeds increase the more chance there is of contention being an issue. Just think about the size of pipes that some ISP's use and how quickly they will become saturated if customers try to max out their connections. There is a vast difference between the 512k that most ADSL customers had a year or so ago and the up to 24 Mb connection that some can get today. My guess is that you will find that you will have to pay higher prices if you want to use more bandwidth, no matter which ISP you choose.
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I have no doubts that ISP's price their products near the margin but there are some that make millions in profits. If ISP's only made £0.50p profit per customer per month people like BT / NTL / Wanadoo make enough money to keep them in business. At the end of the day customers will go where they can get a good fast service for the right price.