Light Reading
Bandwidth ain't free

10 Meg Is Here!

Phil Harvey
The Philter
Phil Harvey
9/25/2006
50%
50%

6:00 AM -- I just boosted my bandwidth again, this time to 10 Mbit/s. Charter Communications Inc. , my service provider, charges me a little more because I don't take their TV service along with my bandwidth subscription. But, interestingly, they aren't exactly advertising the bump up to 10 Meg in my neighborhood, since it's not widely available.

But here's an interesting thing, I think: A look back at my bandwidth prices paid over a three-year period shows that my top download speed is up considerably, but the price per day is down about 3.8 percent.

Table 1: What I Get, What I Pay for Charter Bandwidth

Date Downstream Upstream Price Per Month (After Tax) Price Per Day Price Per Megabit (Per Month)
Sep-03 1.5 Mbit/s 128 kbit/s $62.91 $2.10 $41.94
Mar-04 2 Mbit/s 128 kbit/s $41.23 $1.37 $20.61
Jul-04 3 Mbit/s 256 kbit/s $41.23 $1.37 $13.74
Jan-05 3 Mbit/s 256 kbit/s $52.05 $1.74 $17.35
Mar-06 3 Mbit/s 256 kbit/s $32.46 $1.08 $10.82
Sep-06 10 Mbit/s 1 Mbit/s $60.47 $2.02 $6.04
Mar-07* 10 Mbit/s 1 Mbit/s $86.38 $2.88 $8.63
* Projected price based on the end of a 6-month promotion




The price per megabit of available bandwidth has fallen by about 80 percent in just three years. I'm not complaining -- but how do service providers even hope to make money on bandwidth when prices are falling that fast?

— Phil Harvey, Cheap Bits Editor, Light Reading

(15)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Page 1 / 2   >   >>
DCITDave
50%
50%
DCITDave,
User Rank: Light Beer
12/5/2012 | 3:13:07 PM
re: 10 Meg Is Here!
The 10 Meg followup is here:
http://www.lightreading.com/do...
trzwuip
50%
50%
trzwuip,
User Rank: Light Beer
12/5/2012 | 3:39:49 AM
re: 10 Meg Is Here!
The answer is that prices for cable internet have always been too high, but now cable has to compete with fiber to the home services.
DCITDave
50%
50%
DCITDave,
User Rank: Light Beer
12/5/2012 | 3:39:46 AM
re: 10 Meg Is Here!
I think you're right. As soon as someone rolls into my 'hood with FTTx, I'll be 10 Meg goes down to $49 or less.

As an aside, I'll probably never pay the $70+ listed on the chart for my service.

The customer service people at Charter encourage customers to call after their price promotion ends so they can glom onto another promotion before the rate goes up.

Why not just be a good company and charge what's fair?

ph
thenight62
50%
50%
thenight62,
User Rank: Light Beer
12/5/2012 | 3:39:45 AM
re: 10 Meg Is Here!
Yo Philter.

How'd you miss Optovia getting taken out by JDSU? Ain't this an optical news site? :0

stephencooke
50%
50%
stephencooke,
User Rank: Light Beer
12/5/2012 | 3:39:42 AM
re: 10 Meg Is Here!
Phil,

There are at least a couple of points to consider here:

1) What is your actual network bandwidth (this generally has to do with the stat-muxing ratio in your 'hood)

2) It is assumed that not everyone will call customer service and will cough up the extra $23.47/month above what you are paying now. The point is that, as long as it didn't cost Charter that much to provide the bandwidth increase that you see, they are still gaining revenue if not margin as well. This is the same rationale behind mail-in rebates.

Steve.
busted
50%
50%
busted,
User Rank: Light Beer
12/5/2012 | 3:39:41 AM
re: 10 Meg Is Here!
proof!? That is why we need journalists; isn't it?
Lite Rock
50%
50%
Lite Rock,
User Rank: Light Beer
12/5/2012 | 3:39:41 AM
re: 10 Meg Is Here!
Yo? That is so 80's...

Why would you bust Phil's hump about this when nobody covered this acquisition. It is not even listed on the JDSU web site.

How do we know they really acquired Optovia?

Can you provide some evidence?

I mean, I am happy if they did. The folks that moved from Boca needed to get some kind of reward for moving to MA.

Cheers
DCITDave
50%
50%
DCITDave,
User Rank: Light Beer
12/5/2012 | 3:39:40 AM
re: 10 Meg Is Here!
Optovia... what do they do again?

ph
thenight62
50%
50%
thenight62,
User Rank: Light Beer
12/5/2012 | 3:39:38 AM
re: 10 Meg Is Here!
hybrid raman amps... hut skipper.
Lite Rock
50%
50%
Lite Rock,
User Rank: Light Beer
12/5/2012 | 3:39:37 AM
re: 10 Meg Is Here!
You sure they didn't call it the "hut hopper"?
Page 1 / 2   >   >>
More Blogs from The Philter
There's an interesting tension between how much SDN can benefit service providers and how it could threaten their established businesses
Stanford's Nick McKeown says SDN won't take hold until networking equipment vendors give up some control
OneAPI may provide developers a reason to build apps and content for networks, not just mobile operating systems
Ericsson CEO Hans Vestberg defends his company's managed services deals and says he'd rather invest in R&D than make expensive acquisitions
Use our message boards to share photos from your Barcelona experience this week
Flash Poll
LRTV Huawei Video Resource Center
Sales Director of INIT on Plug & Play Switch Devices

9|19|14   |   3:21   |   (0) comments


INIT Italy uses both the Huawei S5700 and S7700 series switches for the campus LAN environment. Sales Director Andrea Curti says their company chose these Huawei devices over others because of their performance, flexible scalability and plug-and-play features.
LRTV Huawei Video Resource Center
Saudi Arabia Upgrades Vocational Training System

9|19|14   |   3:31   |   (0) comments


The Technical and Vocational Training Corporation (TVTC) has 100,000 students, 150 government-owned institutions and oversees 1000 private institutes. The CIO of TVTC explains that Huawei devices have allowed them to manage multiple datacenters using just one software program, scientifically tracking the progress of students and teachers, saving them millions.
LRTV Huawei Video Resource Center
Huawei's Media Solutions Are Here to Stay

9|19|14   |   4:35   |   (0) comments


The current media revolution requires rapid upgrades in technology. New formats (HD, 3D, 4K etc.) and the subsequent explosion of file sizes demand sophisticated network and storage architecture. Social media and the multiple distribution channels require a robust asset management system. Gartner analyst Venecia Liu speaks about the current technological trends in ...
LRTV Huawei Video Resource Center
Microgenesis on Huawei's Switches

9|19|14   |   3:57   |   (0) comments


Microgenesis is a solutions and system integrator company in the Philippines whose areas of expertise include data centers, networking and security products. In this video, Executive Director Jeffrey Choa talks to us about his customers needs and they benefit from using Huawei switches.
LRTV Huawei Video Resource Center
Network Solutions Help the Philippines Jump Ahead

9|17|14   |   2:59   |   (0) comments


In the past, the Philippines has under-invested in technology. Now, the CEO of Softshell talks about how Huawei products help the Philippines jump ahead as the economy improves.
LRTV Huawei Video Resource Center
VCS Observation for Safer Cities in the Netherlands

9|17|14   |   5:20   |   (0) comments


Holland's VCS Observation has been operating for 22 years. Its main goal is to get cities safer. CEO Wim van Deijzen tells us some of the challenges his company faces and how Huawei is helping to overcome these challenges.
LRTV Huawei Video Resource Center
A Conversation With Serbia's Ministry of Interior

9|17|14   |   4:38   |   (0) comments


At HCC 2014, the Assistant Minister of the Ministry of Interior of the Republic of Serbia talks to us about his projects and corporation with Huawei. Solutions like Safe City and E-Government and services like cloud computing are just some of the areas his department is interested in.
LRTV Huawei Video Resource Center
IHS Analyst Discusses eLTE at CCW 2014

9|10|14   |   7:09   |   (0) comments


Thomas Lynch, associate director of critical communications at IHS Technology, talks about broadband in critical communications.
LRTV Huawei Video Resource Center
TCAA on Huawei eLTE: A Broadband Solution for Mission-Critical Communications

9|10|14   |   2:29   |   (0) comments


At CCW2014 in Singapore, the TCCA's Phil Kidner talks about the importance of broadband data for critical communications.
LRTV Custom TV
Spotlight on Cisco: SDN for Optical Networks

9|8|14   |   9:27   |   (0) comments


Cisco's Greg Nehib talks OpenFlow and more on the 'Software-Defined Networking for Optical Networks' panel at the Big Telecom Event in June 2014.
LRTV Custom TV
Cisco's Evolved Programmable Network (EPN)

9|8|14   |   4:05   |   (0) comments


A look at the various demos Cisco showed at Light Reading's Big Telecom Event highlighting Cisco's EPN innovation and how SDN and NFV technologies are enabling a variety of new services.
LRTV Huawei Video Resource Center
The Future of Ultra-Broadband, With Kevin Kelly (UBBF2014)

9|5|14   |   1:13   |   (1) comment


If you think the technological changes we've seen up to now are astounding, just wait until you see what the future has in store. Discuss upcoming breakthroughs with Kevin Kelly, Founding Executive Editor of Wired Magazine, at the Huawei Ultra-Broadband Forum on September 24.
Upcoming Live Events
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
A survey conducted by Vasona Networks suggests that 72% of mobile users expect good performance all the time, and they'll blame the network operator when it's not up to par.
Today's Cartoon
Vacation Special Caption Competition Click Here
Latest Comment
Hot Topics
Photos: Qualcomm Takes Over San Francisco
Sarah Reedy, Senior Editor, 9/19/2014
NFV & The Data Center: Top 10 Takeaways
Sarah Reedy, Senior Editor, 9/18/2014
EMC Mulls Merger With HP or Dell – Reports
Mitch Wagner, West Coast Bureau Chief, Light Reading, 9/22/2014
Pics: LR's Women in Telecom Breakfast
Sarah Reedy, Senior Editor, 9/16/2014
North KC Says Free Gigabit for All
Jason Meyers, Senior Editor, Utility Communications/IoT, 9/16/2014
Like Us on Facebook
Twitter Feed