4 ms·

> ISPs operate on a similar business model to gyms. They couldn't afford to provide the service if everyone maxed out what they are paying for. My ISP is a "sm

by OldHand2018 6y ago

> ISPs operate on a similar business model to gyms. They couldn't afford to provide the service if everyone maxed out what they are paying for. My ISP is a "small" provider that focuses on multi-unit urban residential buildings in the midwest. Their business model is to make an agreement with the building management and provide a baseline service to every unit, while offering upgrades and extra services to individual units that want them. They have an incentive to provide far more capacity than the baseline so they have room to offer upgrades. I pay $25 per month for 250mb symmetrical and am definitely getting those speeds 24/7. I have the option to upgrade to 1G symmetrical for something like $500 per year, but haven't seen the need. Unless an ISP is serving a very low density customer base, the cost of building out full capacity just isn't prohibitive anymore. My ISP only has around 20,000 customers and they have direct peering with Netflix, Amazon, Apple and others - clearly an ISP doesn't even have to get very large before those cost benefits arrive.

netllama 6y ago
I don't think you fully grasp what operating an ISP is truly like outside of most developed, Western countries. Its absolutely nothing like what you're describing (and blatantly assuming). For example, Brazil literally has thousands of tiny ISPs, each with, at most, a few hundred customers. They operate on the narrowest of margins, squeaking out close to no profits. They cut corners everywhere. They definitely do not have spare capacity, and over sell by insane percentages. Another example, Mongolia, where there's basically just one ISP, the government owned Unitel. They have zero incentive to do anything extravagant, or even provide good service. Its a monopoly. The cost of building out full capacity is very much still a limiting factor in many parts of the world.

netllama 6y ago

I don't think you fully grasp what operating an ISP is truly like outside of most developed, Western countries. Its absolutely nothing like what you're describing (and blatantly assuming). For example, Brazil literally has thousands of tiny ISPs, each with, at most, a few hundred customers. They operate on the narrowest of margins, squeaking out close to no profits. They cut corners everywhere. They definitely do not have spare capacity, and over sell by insane percentages. Another example, Mongolia, where there's basically just one ISP, the government owned Unitel. They have zero incentive to do anything extravagant, or even provide good service. Its a monopoly. The cost of building out full capacity is very much still a limiting factor in many parts of the world.