On Tuesday 28 February 2006 11:11, McTim wrote:

> As Noah says "Bandwidth is cheap".  However it's the
> space segment that kills us in UG.

Correct, but we are still in a quagmire - even if 
"segment" moves from satellite to (proposed) fibre, the 
current fibre provisioning costs nearly exceed (if not) 
existing satellite prices.

So unless something dramatic happens, because most 
attractive content is off the continent, bandwidth prices 
may very well still be up there for a while.

> Depending on their contention ratio, let's say 10:1

For that price, could be worse :), at least 1:15, but 
let's focus on 1:10.
> and 
> allowing for a bit of burst capability,...

Assume no burst outside this band. I'd rather expect burst 
inside the band in case the cumulative bandwidth consumed 
by all 10 customers within this single band doesn't 
exceed the overall band threshold.

> they can get 20 
> some odd customers out of each Mbps.

Are basing the 1:10 on the basis of how many 128Kbps 
customers you can stick in 128Kbps, or in 1Mbps?

> At 2000 USD per 
> Mbps, that makes a profit of ~700 per Mbps (before
> overhead, etc).  Am I missing smt here?

Remember satellite bandwidth is typically provisioned in 
an asymmetric fashion (more to ISP, less to upstream).

Some satellite service providers that are trying to reduce 
price are looking at low prices (around USD$1,700.00) per 
Mbps, but in one direction.

Cheers,

Mark.

> Transfer based pricing might even make it cheaper.  I
> am terrible at calculating that tho, can you point me
> to a clueful url on that. Google isn't much help I'm
> afraid!
>
> --
> Cheers,
>
> McTim
> $ whois -h whois.afrinic.net mctim

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