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Old 14-10-2003, 13:35   #77
erol
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Join Date: Oct 2003
Location: cyprus
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Re: Goodbye to a flat rate for broadband?

Quote:
Originally Posted by andygrif
I'm coming into this discussion a little late, but the thread did make interesting reading.
np. good to have you here

Quote:
Originally Posted by andygrif
However, important as the internet is (and as much as I hate these silly analogies which bear no relation to a unique product, e.g cars) they did it with water meters, and water is a matter is a matter of life and death.
as above, the cost of providing water _is_ incremental on usage. The argument with modern packet based digital networks is that it is not.

Quote:
Originally Posted by andygrif
Another angle is that internet providers buy bandwidth based on useage. However, why is this? If I am an ISp and I pay for 1TB link, surely I should be negotiating a price based on using the 1TB, not if I use half of it. If it is good enough for the ISP's to charge their customers on this bases, why don't they negotiate the same deal with their providers?
Almost all transit bandwidth bought by ISP's is not paid for by usage. They pay a flat rate for a certain size of connection, regardless of how much they use it. Why is that ? Because almost all of the cost of such bandwidth are fixed, regardless of usage

Quote:
Originally Posted by andygrif
I think the bottom line for most people can be summed up pretty easily - neither for nor against, as long as it works well and doesn't cost any more a month.
I would like to see both options available to users. Pay for MS's used and flat rate. Both are commercialy viable.
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