Some interesting articles.
Quote:
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For Primus, however, the majority of its clients' information runs through facilities in which it has installed and owns some of the equipment – making these facilities a so-called “co-location.” In areas close to these network centres, which can cost as much as $150,000 to set up and much more to maintain, it is still possible to offer unlimited plans, since it is the independent ISP that is processing the data, Mr. Day says. Although the company has raised prices and introduced caps on some Internet plans, the areas around these facilities – which includes many Canadian cities, such as Toronto, Montreal, Ottawa, Kingston, and others – are still able to buy an unlimited bandwidth plan.
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http://www.theglobeandmail.com/news/...rticle1868429/
So does that mean renting the physical fiber lines themselves is not the problem, but renting the switching equipment is where the cost is?
For Photon. Netflix CEO talking about the cost to deliver bandwidth.
Quote:
Hastings also criticized the prices being charged to users that exceed their download caps.
In a letter to investors, he said it costs ISPs about a penny per gigabyte of data traffic — and that cost is decreasing. He said overage data charged at $1 per gigabyte is “grossly overpriced.” Meanwhile, Canada’s largest ISPs typically charge twice that amount and sometimes more.
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http://www.thestar.com/entertainment...-download-caps
Proving its all about a cash grab.