Quote:
Originally Posted by WireSix-Ryan
You aren't even taking into account their cost of corporate overhead, support, office space, other bills, power, physical space, etc.
Their products were priced at straight up $4-5/mbps so a 100mbps box was $400-500 with hardware included, even $4/mbps @ 90% isn't going to cover all their costs.
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No its not, but the massive overselling they did makes up for a large chunk. Not to mention however many accounts they have still at 8/Mbps pricing etc that they were running a year ago. and now their cost was sub 4/Mbps.
You and I both know they were the cheapest cogent boxes 1-2 years ago and undercut everybody and I'm sure they still had plenty of people still paying 8-10/Mbps when their cost was sub 4. Thats still nice profit on top of the massive overselling.