Re: cost of 1 gig GOOD POINT

[David Farber <dave () farber net>]

Begin forwarded message:

From: Adam Lynch <alynch () gmail com>
Date: April 14, 2009 7:46:15 AM EDT
To: dave () farber net
Subject: Re: [IP] Re: cost of 1 gig

I'm surprised nobody is up in arms about this one, yet, but:

What about all the traffic that never goes off-net- like Akamai'd
content, and other distributed content? Customers will then be charged
for usage that *never actually leaves TW's network*?

-Adam (who lives in the affected area of Rochester, NY)


On Tue, Apr 14, 2009 at 6:13 AM, David Farber <dave () farber net> wrote:
> Begin forwarded message:
>
> From: James Seng <james.seng () gmail com>
> Date: April 14, 2009 5:26:12 AM EDT
> To: Dave Farber <dave () farber net>
> Cc: ip <ip () v2 listbox com>
> Subject: Re: [IP] cost of 1 gig
>
> Ignoring the math aside, and I doubt time warner pays their  
> bandwidth in
> blocks of T1, let's   use market rate of CDN as a basis, you can get  
> about
> 20cent/GB. Larger players can get below 10cent. (Disney for one gets  
> that
> price as far as I know).
>
> Of cos pricing varies depend how far you are from the exchanges but  
> CDN
> pricing is as good estimate as you can get, bear in mind the price I  
> quote
> above is US market rate, profitable to CDN operator.
>
> Sent from my iPhone
>
> On Apr 14, 2009, at 5:05 PM, David Farber <dave () farber net> wrote:
>
> > So what does it cost off peak?? djf
> >
> > Begin forwarded message:
> >
> > From: Brett Glass <brett () lariat net>
> > Date: April 13, 2009 10:06:43 PM EDT
> > To: "Dave Farber" <dave () farber net>
> > Subject: P.S.
> >
> > See my posting regarding the incremental cost of 1 GB at
> >
> >
> > http://bennett.com/blog/2009/04/pitchforks-in-austin-time-warners-bandwidth-cap/comment-page-1/#comment-427947
> >
> > @matthew: Time-Warner (or any ISP) isn’t just paying for transit,  
> > though
> > that is an expensive component of their costs. They’re also paying a
> > backbone provider. And since the Internet has “rush hours” (the  
> > busiest time
> > of day is “prime time,” when people all seem to want to start  
> > streaming
> > video or browsing at once), they have to buy and provision enough  
> > capacity
> > to keep up with the peaks in demand.
> > $1/GB is actually pretty close to the incremental cost of pumping  
> > another
> > gig of data through the system during “rush hour.” Think about it:  
> > you have
> > an hour and a half to get that gigabyte through the pipe to the  
> > user who’s
> > streaming the movie. That’s 8 billion bits in 90 minutes. That  
> > means that
> > you have to add another 1.48 Mbps — about another T1 — of capacity.
> > What does this cost? On a monthly basis, this much bandwidth costs  
> > $5.50
> > if you are co-located at an Internet peering point. The cost is  
> > about $30 if
> > you’re a well connected cable provider with a leased line into that  
> > peering
> > point. It costs you$148 if (like me) you’re a rural ISP paying $100  
> > per Mbps
> > for bandwidth; and $450 if you’re a rural ISP in some other areas  
> > of America
> > where the only way to get bandwidth is via expensive bonded T1 lines.
> > But back to Time Warner’s case: the $30 divided by 30 days is $1  
> > per GB —
> > exactly what Time Warner is charging.
> >
> >
> >
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--
Adam Lynch <alynch () gmail com>




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