ISPs 'Exaggerate the Cost of Data' 173
Barence writes "ISPs are wildly exaggerating the cost of increased internet traffic, according to a new report. Fixed and mobile broadband providers have claimed their costs are 'ballooning' because of the expense of delivering high-bandwidth services such as video-on-demand. However, a new report from Plum Consulting claims the cost per additional gigabyte of data for fixed-line ISPs is between €0.01-0.03 per GB. The report labels claims of ballooning costs a 'myth.'"
Yea. (Score:2, Insightful)
No fucking shit.
Re:Maybe Plum Consulting should become an ISP? (Score:2, Insightful)
You obviously don't understand that Plum Consulting is just pointing out that these companies are using price fixing. They all make an excuse, then all jack their rates. It's collaboration, which carries some hefty fines.
Re:Carefull (Score:5, Insightful)
Not really, In places where the b/w costs are competitive (server hosting) I don't pay much more than that. ISPs only get to charge more because there are fewer options, on the other hand, last time I was in a telco building pretty much everyone was using ATM switching equipment and that will drive the costs up.
Re:Carefull (Score:5, Insightful)
That is exactly my point. The entire cost of running an ISP is the costs associated with the "last mile" and they are using that to overcharge. I would be much more understanding if the limitations I faced were due to the copper rather than artificial charges from the ISP side.
Re:Maybe Plum Consulting should become an ISP? (Score:5, Insightful)
I've been saying the same thing for years - as soon as any technology reaches the stage where it becomes essential infrastructure, ownership should gradually transfer to the public. And to those of you who say, "What about capitalism and free enterprise", I say "What about all the tax breaks, government handouts, favourable legislation, and public rights-of-way that these 'free market' 'capitalist' companies took advantage of to get where they are?"
It strikes me that privatized infrastructure is like patents and copyrights in this regard. A period of full ownership and control is required in order to ensure a fair return on investment and to incentivize creation; after that period expires, the thing created belongs to the public. Everyone who complains about the screwed-up patent and copyright systems ought also to be complaining about the continued private, for-profit ownership of such things as communications infrastructure.
Re:Maybe Plum Consulting should become an ISP? (Score:1, Insightful)
Note that sometimes just upgrading their network doesn't work. There is a limited amount of bandwidth available between ISPs and from city to city and to and from overseas. It costs billions to lay down new such cables in the bottom of the atlantic. When your ISP is the size of major ISP's, they just don't have the possibility to offer everyone dedicated bandwidth. It has to be shared.
If they have a need to control the amount of bandwidth some heavy users use on their network, then that's the best way to go about it. Or in fact, they could either offer overage fees or severely limit your bandwidth. However, they have saw the need to do it make sure the rest of the customers aren't affected. Those torrenting and using full 100Mbps home line 24/7 are just leeches that are bringing down the network quality for rest of the customers.
Of course, if you don't agree you can always go start your ISP. Seems like you'd make a fortune since you've suddenly found so easy and cheap way to do.
Re:Maybe Plum Consulting should become an ISP? (Score:4, Insightful)
Of course, if you don't agree you can always go start your ISP.
The 12 year olds approach to arguments.
Re:Carefull (Score:5, Insightful)
The truth is never in the middle. Sometimes the truth isn't even on the same axis as the claims. The truth is what the truth is, and you can't find it by simply averaging the claims of interested parties.
The truth, in this case, is that the ISPs are balkanized monopolies. Except for a few places, you've only got one or two options in any given area. Since there's no real competition, they can basically charge what they want. The costs don't really come into it.
Re:Maybe Plum Consulting should become an ISP? (Score:3, Insightful)
Re:Maybe Plum Consulting should become an ISP? (Score:5, Insightful)
The biggest cost component (Score:5, Insightful)
It's the same thing with telephony. The long distance market fell apart because the cost to carry the calls kept dropping with increased levels of automation. Now long distance is bundled in with the normal monthly cost of most phone plans wired or wireless.
And even wireless services, they're getting increasingly less expensive to provide too. But they'll try to charge all the market will bear.
And need I bring up banks that rely on some of the technologies above? Why do you pay a foreign ATM fee that's a full 30% of the average $20 withdrawal when we KNOW that the cost for the network transports are hundreths of a cent per transaction? The bottom dropped out, but banks being greedy, rapacious bastards, will charge all the market will bear.
Re:Carefull (Score:4, Insightful)
Internet protocol is meant to be P2P, but routing tables aren't. They work best with a hierarchy.