Where are you getting this 512kbs for $50 per month from? When I do a quick back of the envelope calculation using relatively recent wholesale bandwith costs an

Where are you getting this 512kbs for $50 per month from? When I do a quick back of the envelope calculation using relatively recent wholesale bandwith costs and backhaul costs I get much more reasonable numbers. Wholesale bandwidth pricing isn't anywhere near that high, and back haul costs at most double it. $10 per mbs per month isn't uncommon for wholesale bandwith pricing from "on-net" buildings (and now days $2 to $4 isn't unheard of). The back haul cost to your local C.O. is probably roughly around $10 per mbs as well (admitedly I'm going of backhaul costs from Toronto to Waterloo up in Canada) and then your down to the local loop. We will assume the cost of the local loop is allready covered in the existing price paid, so if the user wanted N dedicated mbbits it should cost N[margin][12 to 20 dollars] per month more. Now are most users may not be willing to pay for this. A frequent way of dealing with the "bursty" nature for servers is 95th percentile billing where by you pay for the max of what you use, dropping the top 5%. Admittedly these numbers are very back of the envelope, but I think its a bit more realistic than $50/month for 512kbs.