Stupid question (or is it)

Shahbanue

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Sep 20, 2006
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Nelspruit
Would someone please enlighten me as to why some ISP's price their bandwidth on line speed & others do not. After all the disadvantage of a faster line is that you reach your cap sooner. You still use the same bandwidth but sooner.
 
Capacity planning. ISP's pricing by speed normally have a IP Connect.

Theory
If 10 customers with 1024 connect they need a 1024 IP Connect costing R9000pm. or R900 pm for each customer.
If they had 10 customers on 512 they need a 512 IP Connect costing R500 per month or R500 per customer per month.
(Not real prices.. They also need certain local and international bandwidth pipes costing loads)
 
Other ISP's just bank on uses with slower lines downloading less of thier cap, thus increasing thier overall revenue.

Remember if a client is on a normal monthly 3GB account, any unused bandwidth represents profit to the ISP.
 
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