nanog mailing list archives
Re: Why do some ISP's have bandwidth quotas?
From: Tom Vest <tvest () eyeconomics com>
Date: Thu, 4 Oct 2007 13:50:40 -0400
On Oct 4, 2007, at 1:29 PM, Justin M. Streiner wrote:
On Thu, 4 Oct 2007, Hex Star wrote:Why is it that the US has ISP's with either no quotas or obscenely high ones while countries like Australia have ISP's with ~12gb quotas? Is there somekind of added cost running a non US ISP?Depending upon the country you're in, that is a possibility. Some countries have either state-run or monopolistic telcos, so there is little or no competition to force prices down over time.Even in the US, there is a huge variability in the price of telco services from one part of the country to another.jms
Hint: whenever/wherever service providers are able to secure the majority of their essential inputs on a predictable fixed cost basis (e.g., circuits rather than variable IP transit), they tend to extend the same pricing model to their customers. However, in some cases there is a major lag separating the timing of the change in the provider-level cost model and the change in customer-facing pricing. Absent competition, the lag may be infinite. In other cases, there may be more variable costs associated with service delivery than is immediately obvious.
Southern Cross was completed in late 2000, and not long after (couple of years) incumbent operators in AUNZ had done a pretty good job of leveraging the new infrastructure to effect just the sort of variable- to-fixed cost conversion described above. Marginal improvements in customer pricing are just starting to happen in the last year or so...
TV
Current thread:
- Why do some ISP's have bandwidth quotas?, (continued)
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- Why do some ISP's have bandwidth quotas? Vassili Tchersky (Oct 04)
- Re: Why do some ISP's have bandwidth quotas? Roland Perry (Oct 06)
- RE: Why do some ISP's have bandwidth quotas? Steven Haigh (Oct 06)
- Re: Why do some ISP's have bandwidth quotas? Andy Davidson (Oct 08)
- Re: Why do some ISP's have bandwidth quotas? Roland Perry (Oct 08)
- Re: Why do some ISP's have bandwidth quotas? Andy Davidson (Oct 08)
- Re: Why do some ISP's have bandwidth quotas? Miquel van Smoorenburg (Oct 08)
- Re: Why do some ISP's have bandwidth quotas? Tim Franklin (Oct 08)
- Re: Why do some ISP's have bandwidth quotas? Tom Vest (Oct 04)
- Re: Why do some ISP's have bandwidth quotas? Joe Greco (Oct 04)
- Re: Why do some ISP's have bandwidth quotas? Joe Abley (Oct 04)
- Re: Why do some ISP's have bandwidth quotas? Joe Greco (Oct 04)
- Re: Why do some ISP's have bandwidth quotas? Adrian Chadd (Oct 04)
- RE: Why do some ISP's have bandwidth quotas? michael.dillon (Oct 05)
- Re: Why do some ISP's have bandwidth quotas? Adrian Chadd (Oct 05)
- Re: Why do some ISP's have bandwidth quotas? Ron da Silva (Oct 05)
- Re: Why do some ISP's have bandwidth quotas? Joe Greco (Oct 05)
- Re: Why do some ISP's have bandwidth quotas? Joel Jaeggli (Oct 06)
- Re: Why do some ISP's have bandwidth quotas? Tony Finch (Oct 08)