Quote:
Originally Posted by Strife
Another person stuck back in 2002 
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ok so what is price on true Tier 1 traffic per meg?
Anyone selling this makes there money like this: (article posted on
www.thewhir.com)
Scam: here is the biggest scam in the hosting industry in bandwidth resale. When you buy 1 Meg of traffic chances are you will not use a full 1 Meg for the entire month. It is also very likely that you will only use about 40-50%, but you may burst for few a minutes during high traffic peaks. What many hosting companies have done in the past and are still doing today, is take 2 different people that both pay for 1 Mbps and have them share the same Meg of allocated bandwidth. Basically, they are banking on the fact that when you burst the other company will probably not and vice versa. Therefore a hosting company can sell you bandwidth for $50 p/Mbps and sell it to another company at the same price making $100 p/Mbps.
Now many people say who cares? Well here is the reason why you should care. Have you ever typed in a url of a site you know exists, or a link on the site and it brings up ?The page can not be displayed?? Well what just happened is that secession that you just initiated did not have enough bandwidth to display, in hosting terms that is called packet loss. So how would you like for your customer to try to order something from your site and get that page over and over again? Well that is what will happen if both you and another person that shares your bandwidth have high traffic on both of your sites at the same time.