On Wed, 24 Jan 2007, Travis Johnson wrote:

That's not correct. About 5 years ago, we were paying $1,500 per T1 and selling T1 speed wireless for $250 per month. Seven to eight years ago we were paying $3,000 per T1 and selling wireless T1 for $250 per month. This is the entire ISP business model.

And you allow a single customer to pay you $250/month for what you pay $1500/month? And you make money how? What I read in Matt's post (below) is that if they pay for the 1.5Mbit, they should get it...anytime, all the time. As in dedicated. Perhaps I mistook his intention, but from reading others responses, I'd guess I didn't.

FWIW, I have been in this business long enough to understand how it works. I am not saying that you can't purchase a T1 and sell a T1 speed to more than one person and "get away with it". But keep in mind, that selling internet access to businesses 7-8 years ago is not even the same as it is today. Back then, businesses did not use NEAR the average bandwidth they use today. Even so, they use much less average BW than do residential subs (in most cases). SO, if your cost/meg goes down, your utilization is going up. Your bottom line will show you that what I am saying is true (and I know you understand this anyway).

On Wed, 24 Jan 2007, Matt Liotta wrote:

Have you thought about selling the customer a pipe that works for any and all traffic at the speed the customer signed up for as opposed to deciding for the customer?

Butch Evans
Network Engineering and Security Consulting
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