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Old 12-24-2004, 07:50 AM  
dubsix
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Join Date: Dec 2004
Posts: 363
Quote:
Originally Posted by Lenny2
Of course not....but you also said that you could get Level3 for $15 a meg with a big enough commitment.
So let's do the math.

On a 10meg capped line the customer will be able to use max 7 megs. Any more and their site will be too slow during peak times and they'll have to upgrade to another package with a bigger port.
So if they use 7megs (at 95th percentile) and they're paying you $399 then you're getting $57 a meg on bandwidth that you paid $15 for.
That's more than triple your cost....hell its almost quadruple.

As for hardware costs...well if this was your only customer then you'd have major problems....but if you have 100 guys with boxes like this (10 megs capped @$399) then you're taking in 40K a month for one gige commitment which according to your $15 figure before costs you 15K.
That's 35K a month over and above your bandwidth cost to maintain your hardware and pay your techs etc etc.

Doesn't seem too unreasonable to me....unless you only have 5 customers.

just like any other business, it's all about volume
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