Level 3 Communications Issues Statement Concerning Comcast's Actions
blackham at gmail.com
Tue Nov 30 01:47:10 CST 2010
On Nov 29, 2010, at 15:57, William Warren <hescominsoon at emmanuelcomputerconsulting.com> wrote:
> I think Karl Denninger has this one called right:
I don't think so. Let's do a little math exercise:
Comcast charges me $75/mo for my pipe, but let's discount that for bundling, promos and lower tier services. $30-40 avg ok?
For that money I get 250GB a month. Let's assume I actually use it - which I never do, even with Netflix, other VOD, and many habits common to eyeballs - but for the sake of a number to work with, I do. That's less than 1Mbps average per month. I'm not factoring in deviation from avg to peak, so I am going to assume 1Mbps per sub is peak per sub and 250GB is not the average for the user base.
That is at least $40/Mbps paid by the eyeballs... or if I am very wrong, $20/Mbps. This is unsustainable and requires income at both ends for a healthy business model?
I'm not convinced. Either I'm calculating something wrong, or greed is at work.
More information about the NANOG