On Sun, Oct 02, 2005 at 08:09:00PM -0700, Wade Curry wrote:
> My take is that some (maybe most) ISPs are over-selling the
> "upsteam" bandwidth.  They want to tell their naive customers that
> they have 2mbps upstream knowing that the average user won't
> utilize it.  Then they sell the same bandwidth again to the person
> who buys web hosting from them.

Sometimes.

With a cable modem, you have limited upstream bandwidth to begin with...
there's only a couple of channels that can be used for upstream.  So
asymmetrical bandwidth is just a fact of life there.  But DSL?  It's
been a long time since I was involved with DSL, and I recall no such
technological barrier.  I'm not sure why they love to sell
asymmetrically.

As for "overselling", it's a simple fact that if you sell 100 users
2Mb/s of bandwidth, you aren't going to see a sustained 200Mb/s of
traffic.  Unless you own all of the fiber from the COs to your network,
you have to pay for carriage of your traffic.  So, you might pay for 50
Mb/s in the above case, and 99% of the time, that'll be plenty.  If you
see the utilization grow over time, you can either pay for more transit
bandwidth or face more and more complaints and customers leaving.  If
you pay for more bandwidth, and if that bandwidth doesn't get cheaper,
your profit margin decreases or even disappears.  Raising prices for
consumer-grade ISP connections is pretty much anathema... there's no
better way to see a wholesale exodus of customers.  So, you find the few
people who are chewing up all the bandwidth and either boot them or make
things much more restrictive... the vast majority of your users don't
care about server restrictions and aren't going to leave over them.  The
few who will complain and leave, you're frankly better off without them.
they're usually the guys who call screaming 15 seconds after the
connection goes down :-)

This tells us why the "business grade" accounts cost so much more for
the "same" amount of bandwidth... Cox, for instance, not only provides
different support, but it's a whole different network.  You're charging
people on the assumption that they're going to be using a lot more of
"their" bandwidth.  You keep them happy about paying more for "the same
thing" with stellar support and anything else you can provide.

I actually miss working in ISPs... :-)

-- 
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* John Oliver                             http://www.john-oliver.net/ *
*                                                                     *
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