| Where does the profitable come from? I fail to see how they can offer gig service for $70 and make money off the service.... I understand there are peering agreements, but with each customer with a gig connection, the bandwidth requirements will be insane.
So just where do the profits come in? I think what he meant was that it should provide instant revenue. |
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| said by prairiesky:I fail to see how they can offer gig service for $70 and make money off the service.... I understand there are peering agreements, but with each customer with a gig connection, the bandwidth requirements will be insane.
Bandwidth is actually pretty cheap. Here in NYC, I can, as just an individual, get 1Gig "transit" for $1,200 a month plus $100,000 installation. If I were to connect my neighbors to my connection and charge them $70 per month, I would only have to sign up 17 of them to pay my "transit". Google or any large ISP for that matter wouldn't be paying "transit", due to peering. Their only bandwdth expense would be the cost of laying the fiber and related equipment. |
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| reply to prairiesky
my point exactly. they aren't feeding people off of 1, 1 gbit connection. it's still a negative cash flow. It's also the 100 K that's you have to pay off at 70/customer / month.... takes a lot of customer months to make that happen.
I think hurricane electric has gbit's for 900/month. It's cheap, it's not free. |
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dra6o0n
join:2011-08-15
Mississauga, ON Reviews:
 ·ITalkBB
| $70 USD per month, for a 1Gb connection, that's a 1000Mbps network.
I'm in Canada and I'm already paying nearly $63 dollars a month for a 24Mbps downstream... Potentially. and 1Mbps upstream. And it comes with unlimited rates (third party that uses teksavvy).
If Google comes to play in Ontario, you are going to be sure they will lay down the fibre optic networks and sell it wholesale to the third party ISPs and have them make internet EVEN cheaper.
If $70 is 1Gbps overall for a network, and mine is a cable so ~300Mbps on the cable network? Not sure.
In any case, a LOT of Canadians are willing to pay $70 a month if it means having access to insanely high speed, no one is willing to pay $100 a month for 'fast speeds'. |
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| reply to prairiesky
said by prairiesky:my point exactly. they aren't feeding people off of 1, 1 gbit connection. it's still a negative cash flow. It's also the 100 K that's you have to pay off at 70/customer / month.... takes a lot of customer months to make that happen.
I think hurricane electric has gbit's for 900/month. It's cheap, it's not free.
Keep in mind, though, that the 100k would be my cost as an individual to do one location, one time, without the benefit of scaled economics. Our local phone company, Verizon, reports that thier FiOS fiber to the home product costs them only $750 per location, but thats after they've fibered up 16million homes/businesses. As for the bandwidth costs for Google, they already have 850Gigs of connectivity that they run profitably. I'd bet that they aren't paying anywhere near $900 per gig. |
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| but it's still not free by any means. So if they can give away a connection, how does it get paid for? Nothing is ever free. |
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| I'm not sure how we got from $70 per month to free, but we can talk about their free 5Mbps service if you'd like. Its simple. They are giving away free 5Mbps connections in return for collecting usage data, which they can sell to their advertisers. Google is an advertising company, after all. That's how it gets paid for. |
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