Originally posted by Sushubh@Dec 30 2005, 01:51 PM
512 kbps line for 1 dollar a month. now i would love that package...
as for what the bandwidth is costing them... well, airtel is spending a fortune on laying underground cabling, setting up customer support, billing centers, hiring engineers, and all the networking shit. that does not cost anything?
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Does that justify ripping us off? I can understand that they will be "eager" to recover their initial costs but that doesn't mean they will start charging overly for their services?
I am absolutely with Thor! Let do some math here!
I am quoting figures from this post:
https://broadband.forum/index.php?showtop...890&#entry34890
Cost of a leased line (155Mbps) is quoted : 2,392,000INR
For those who are unaware of what leased line means, look up the dictionary. I will explain in brief. Its a dedicated line which guarantees the speed which you are alloted. Nobody else will be hogging your bandwidth.
Anyway, now, the ISPs set a contention ratio of 50:1 on their leased lines. So lets see how many 256Kbps leased lines will an ISP be able to give us:
155 / 0.256 = ~605.5. Lets take it as 605 connections.
But the contention ratio is 50:1 so... actually 605 * 50 users will be sharing the bandwidth. Meaning 30250 people will use this line.
Hmm that means, the ISP should charge atleast 2392000 / 30250 (taken 2400000 for simplicity) to be at the break even point (for bandwidth costs).
So the cost per user works out to : ~79.3388INR. Lets take it as 80INR. (That explains how MTNL could slash its costs from 399 to 199INR overnight!)
So an unlimited 256Kbps shared connection should cost the user Rs.80 per month if the ISP decides that he doesnt wish to make profits.
Also, here is the dirty underhanded tricks that BSNL, MTNL and every other ISP are following. They are overloading their connections by atleast a factor of 10 or 20. Which means, they are sharing a dedicated 155Mbps line between more than 3 lakh to 6 lakh retail users.
Why?
Simply because they want to drive down their costs and make profits?
How?
By keeping stupid download restrictions of 400MB to 1GB (GB is open to interpretation by the ISP) per month, they sucessfully inhibit too many users from sucking up too much bandwidth at the same time there by preventing people from experiencing slow downs.
So?
Thats why they are freakin' afraid of giving out unlimited connections.
😉
If we have some insider with a big ISP then we can determine the REAL costs of bandwidth that ISPs are paying. I am quite sure that the OCs must be much higher. The DC costs, the support staff cost and plenty other costs involved still dont justify the stupid plans that BSNL/MTNL or other ISPs (including airtel) are offering...