[kwlug-disc] UBB technology and business models

Darryl O'Neill ldoneill at golden.net
Wed Feb 2 11:10:40 EST 2011

A couple of things have happened in the last year
1) CRTC ruled in favour of ISP's on speed matching
2) Services like Netflix are going to be released in Canada.

ISP and Bell's business model on selling internet is based on 
overselling a pipe.  There is a maximum speed that can be used at any 
one time and an average amount of data likely to be drawn.   ISP's 
selling unlimited packages are first limited by the throughput speed and 
they know that no one is going to be running at 100% 24 hours a day.

The first ruling means that the maximum speed just doubled.  People keep 
talking about how netflix is going to be impacted by this decision.    I 
think that to some extent netflix caused this decision.   The average 
usage per person could skyrocket.  Instead of a link being active 25% of 
the month, it might be active 50% to 75%.
I think this would have caused some panic.   If you have already sold 
unlimited rates and now your infrastructure has to double or quadruple 
how do you pay for it.

Having said this.  I think that $2/GB is ridiculous.


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