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Cost of DSL/Cable

Drakkon

Drakkon

Diamond Member
Just got to wondering, what determins the cost of DSL/cable?
I'm guessing the cost structure goes into amount of data trasnfer the ISP sees, and if thats the case, I maybe do 10-15GB per month transfer (just a guess, all i do at home is check/write emails and look at news/AT), so does that mean I would pay $50 for 10GB while some guy downloading porn all day pays $50 a month for 1TB of data? but really the 20 or so people paying $50 in for their 10GB is making up for the guy downling 1TB, since they arent using all their "possible" bandwidth up and the guy is using more than his fair share...
 
Deregulation has failed. Democrats and Republicans will admit that. Comcast just gobbled up half those companies, and SBC did too.

In the end, we have no competition.

It's like Coke and Pepsi. Each company raises prices by a little, and they follow suit when clearly the stuff in our cans costs less than a nickel.
 
Originally posted by: amdhunter
Because people are willing to pay for it.
Click to expand...

Damn, someone beat me to it.

Thats pretty much it. Same with petrolium products and overpriced junk electronics.
If people are still buying it despite all the negatives, the companies will sell at whatever they can.
 
Originally posted by: OCZ John
I think SBC Yahoo DSL is like 14.99 a month right now.
Click to expand...
it is for 12 months then pops up to $24.99 or whatever the price is after 12 months...same goes for the comcast 19.99 deals...but still you have to buy phone service to get a line in so thats at least another $20 a month so looking around $45-50 a month probobly
cable is a bit more since you have to buy cable TV to get a decent rate...buying even the basic package in my area is $30 a month...add on 19.99 for 6 months than 39.99 thereafter...looking at $70-$80 a month for internet
I know telco are regulated by govt, but i don't beleive the DSL service they provide is? or is it? I mean i see varying prices all over the place, and the only thing the telco's really are charging for is the line maintence fees...its the service providers that make the $$ but due to DSL's slower speeds than cable (and thus customers avg transfer is less) I assume thats how come they are $10-$20 cheaper?

 
It's because grandma and grandpa that are spending $50 a month to check their email are subsidizing the the little torrent freak that has his line pegged 24/7.

It's just how things work. Metered systems don't work because you need to spread your costs out.

Same concept with health insurance. You need 1000 healthy people paying in to pay for that one person that has terminal cancer sucking down 10's of thousands of dollars a day in health care costs.
 
Drakkon , telcos are regulated by the fed . Believe me . I am a telco monkey . The deals the bring forth are all reviewed by the fed , then the state public service commission . If they werent they would do a microsoft and offer bundles like unlimited cell minutes/long dist./local service for $50 a month and crush their comp.They cannot and never will be able to do that by law . The cable providers know this and price their stuff right up to the limit that the market will bear to take advantage of the catch 22 they have on the telcos for now . A level playing field is in the werks to give the consumer a better rate , this would involve regulating the cable giants .
 
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