On Mon, May 28, 2018 at 7:24 PM, John R. Levine <jo...@iecc.com> wrote:
> In article <CAEmG1=oiVJ4qj_D9hA3WS=g64zoo4pYkZ-zDZ0nEEQcTjE5A=A@mail. > gmail.com>, > Matthew Petach <mpet...@netflight.com> wrote: > >> Your 200mbit/sec link that costs you $300 in hardware >> is going to cost you $4960/month to actually get IP traffic >> across, in Nairobi. Yes, that's about $60,000/year. >> > > Nonetheless, Safaricom sells entirely usable data plans. A one day > 1GB bundle on a prepaid SIM costs about $1, a monthly 1GB costs about > $5. They have 4G, it works, I've used it. > > What do they know that Telegeography (who made that slide) doesn't? Math. ^_^; 1GB of volume over the course of a month is 3kb/sec sustained throughput over the month. (1000000000*8/(86400*30)) $5 per 3kbit/sec means that 155mbit link would cost...$251,100/month. (155000000/((1000000000*8)/(86400*30))*5) We call that "Time Domain Multiplexing-based profits". Comparing volumetric pricing with rate-based pricing is one of the best ways of tucking in *lots* of room for profit. :) Matt