nanog mailing list archives

Re: 10g residential CPE


From: Mark Tinka <mark.tinka () seacom com>
Date: Sat, 26 Dec 2020 08:05:43 +0200



On 12/26/20 07:32, bzs () theworld com wrote:

Another way to phrase the question (which was the subject of much
dispute 30 years ago) is:

Which would you rather have (I'll use modern speeds):

1gb flat rate

10gb metered

Where metered 10gb could cost less than 1gb when you don't use it, or
about the same at ~1gb, but more if you use >1gb?

It's possible this pricing model is reawakening.

Back then I argued the bigger pipe / metered was preferable. Then
again it was mostly non-residential.

But admittedly most seemed to prefer the lower speed unmetered. They
preferred the billing predicatibilty and didn't like the idea that a
"power user" (in the residential context that might be "kids") could
jack up the bill.

I suppose that depends a lot on what the actual prices of a flat-rate
1gb vs a fully saturated 10gb. If it's $50 vs $100/mo perhaps some
would say ok I'll risk the $50 overage, if it's $50 vs $500/mo maybe
not.

It's all the sales & marketing people trying to find new ways to sell the same bandwidth so they can keep getting their annual bonuses. Has nothing to do with trying to move the state-of-the-art forward :-).

If the price differential between 1Gbps flat and 10Gbps metered is not that great, many (not all) will prefer the higher bandwidth, especially if it comes with "plenty" of data (say 1TB/month). The customer feels like they are getting more for their money, and the provider knows there is no chance the customer will ever hit 10Gbps, meaning they don't need to roll out network, and can up profits.

Today, if I switched providers, for the same amount of money I am paying now, I'd be able to get a 1Gbps service, easy. I don't do it because packet loss (or lack thereof) is more important to me than more bandwidth. The backhaul provider I use is also a customer of mine that I know knows how to run a decent network. I'd not risk potential packet loss by switching to a provider who can give me 5X the bandwidth for the same price, especially because overall performance of the home won't gain much beyond the 200Mbps I currently have.

But, as they say, YMMV.

Mark.


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