£9.50 broadband woowee !

http://www.incahoot.com/home-broadband/

In article <(E-Mail Removed) >,
(E-Mail Removed) says...
>
> http://www.incahoot.com/home-broadband/
>
>

The real COST to an ISP of providing an ADSL-delivered service is in the
order of £25 to £30.

So where do you think their margin is going to come from ?
(Hint - There ain't no such thing as a free lunch.....)

In article <(E-Mail Removed)>,
Gaius <bin@127.0.0.1> wrote:
>The real COST to an ISP of providing an ADSL-delivered service is in the
>order of £25 to £30.

How did you calculate this?

- river.

Gaius wrote:
> In article <(E-Mail Removed) >,
> (E-Mail Removed) says...
>> http://www.incahoot.com/home-broadband/
>>
>>
>
> The real COST to an ISP of providing an ADSL-delivered service is in the
> order of £25 to £30.
>

Last time I checked the bare technical; costs were, for a rather
congested service, about £7.50

> So where do you think their margin is going to come from ?
> (Hint - There ain't no such thing as a free lunch.....)

Indeed.

In article <ii6c3c$1q7$(E-Mail Removed)>, (E-Mail Removed) says...
>
> In article <(E-Mail Removed)>,
> Gaius <bin@127.0.0.1> wrote:
> >The real COST to an ISP of providing an ADSL-delivered service is in the
> >order of £25 to £30.
>
> How did you calculate this?
>
> - river.

I didn't - these are internal costings within a certain UK ISP. The
costs are calculated starting from the base of the wholesale price. That
is - BT Wholesale's standard products. See BT's pricing website.

This is a fully absorbed service costing. In other words, it includes
all applicable overheads, allocated to an understood set of accounting
rules. The auditors may see these rules, but not the public.....

But back to the original point - how do you think the cheap and cheerful
ISPs make their margins ?

Gaius wrote:
> In article <ii6c3c$1q7$(E-Mail Removed)>, (E-Mail Removed) says...
>> In article <(E-Mail Removed)>,
>> Gaius <bin@127.0.0.1> wrote:
>>> The real COST to an ISP of providing an ADSL-delivered service is in the
>>> order of £25 to £30.
>> How did you calculate this?
>>
>> - river.
>
> I didn't - these are internal costings within a certain UK ISP. The
> costs are calculated starting from the base of the wholesale price. That
> is - BT Wholesale's standard products. See BT's pricing website.
>

That is a nonsense assertion, since it makes inherent assumptions about
the actual loading.

If you connect 1000 subscribers to a 2Mbps pie, its a lot cheaper...


> This is a fully absorbed service costing. In other words, it includes
> all applicable overheads, allocated to an understood set of accounting
> rules. The auditors may see these rules, but not the public.....
>
> But back to the original point - how do you think the cheap and cheerful
> ISPs make their margins ?
>

By providing very little actual bandwidth upstream and almost no support.

>
>
>

In article <(E-Mail Removed)>,
Gaius <bin@127.0.0.1> wrote:
>In article <ii6c3c$1q7$(E-Mail Removed)>, (E-Mail Removed) says...
>> In article <(E-Mail Removed)>,
>> Gaius <bin@127.0.0.1> wrote:
>> >The real COST to an ISP of providing an ADSL-delivered service is in the
>> >order of £25 to £30.
>> How did you calculate this?
>I didn't - these are internal costings within a certain UK ISP.

Okay. When you said "an ISP", I assumed you meant the minimum cost for
any ISP, rather than a particular provider.

Could you reveal what price this ISP charges its end-users, and what
service they provide for this price? Without that information I'm not
sure how meaningful this figure is.

- river.

Gaius <bin@127.0.0.1> wrote:
: In article <(E-Mail Removed) >,
: (E-Mail Removed) says...
: >
: > http://www.incahoot.com/home-broadband/
: >
: >

: The real COST to an ISP of providing an ADSL-delivered service is in the
: order of £25 to £30.

Rubbish! LLU providers can (and do!) it for typically £13!

The Natural Philosopher wrote:
> Gaius wrote:
>> In article <(E-Mail Removed) >,
>> (E-Mail Removed) says...
>>> http://www.incahoot.com/home-broadband/
>>>
>>>
>>
>> The real COST to an ISP of providing an ADSL-delivered service is in
>> the order of £25 to £30.
>>
>
> Last time I checked the bare technical; costs were, for a rather
> congested service, about £7.50
>

And Sky provide one of the finest unmetered products in the country for that
price (to subscribers to their tv service). Of course, though they can allow
the service to lose money as it effectively kills the churn rate for
customers who take it up.

On Mon, 31 Jan 2011 13:04:14 +0000, Gaius wrote:

>
> The real COST to an ISP of providing an ADSL-delivered service is in the
> order of £25 to £30.
>
> So where do you think their margin is going to come from ? (Hint - There
> ain't no such thing as a free lunch.....)


I used to use Plus.net before LLU became available in my area and I then
moved to Sky. They were not that bad. The FUP was a little annoying at
times as a heavy user, having to schedule downloads overnight. But the
connection was generally always fast and stable. I always thought there
were pretty good value, and more than sufficient for an average user. My
Dad still uses them and the service is pretty decent. There are far worse
ISP's out there.

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