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Bandwidth Capping Not Justified By ISPs' Costs

r_pad
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Posted May 5, 2009 - By r_pad

Bandwidth Capping Not Justified By ISPs' Costs

Internet service providers have been whining about the rising costs of maintaining quality service and deploying new technology. This has been the most common excuse for ISPs wanting to impose bandwidth caps, metered services, bandwidth shaping, and the like. According to Ars Technica, ISPs are full of it and just using these excuses as a way to milk customers for more money. 

"It turns out that just about everyone is making huge margins in Internet access, revenue is surging even as costs drop, and companies like Time Warner Cable have actually reduced (significantly) their capital outlays on infrastructure. Even those cable companies that are in the midst of theirDOCSIS 3.0 upgrades are posting significant profits.

Internet upgrades have real costs, of course. When cable users increase their data usage, the ISP eventually needs to spend some cash to split the local node or upgrade the CMTS (cable modem termination system) to DOCSIS 3.0. But the costs aren't ruinously high. The largest ISPs peer most of their traffic; apart from running the peering point, such exchanges of traffic between major ISPs are free. The infrastructure used for both cable and DSL was already in place and paid for." 

Ars' findings are stunning. The way ISPs talked, you'd think that upgrading to DOCSIS 3.0 or fiber-to-the-home would bankrupt companies. If these facts are true then the costs for maintaining and upgrading a data network do not justify things like bandwidth caps. Yet these companies feel totally justified in changing the game, lowering their quality of service, and raising costs. God bless America.

Any of you have ISP nightmares to share? Is your ISP raising your costs while lowering your speeds or capping your data? Leave a comment and let me know (please)!

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Bandwidth Capping Not Justified By ISPs' Costs
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