Re: [httpstreaming] [conex] [dispatch] Q-HTTP

[Ben Niven-Jenkins <[e-mail]>]

Mikael,

On 11 Nov 2010, at 20:57, Mikael Abrahamsson wrote:

> On Thu, 11 Nov 2010, Toby Moncaster wrote:
>> There is also the issue of fair allocation of upgrades. Obviously if an ISP spends a lot of money on increasing their backhaul then this money has to come from the customers. However as things stand the 20% of customers grabbing 80% of the network will also grab 80% of this increased capacity, so they are being even more heavily cross-subsidised. Clearly cross-subsidy is always going to happen to an extent so long as you have flat fees for access (even if you put in tiered fees, there is still cross-subsidy). But this should not be excessive else customers suffer.
> 
> With global transit prices in the few dollars per megabit/month, the actual bandwidth cost per user even if they averaged 1 megabit/s/user at peak, is still not a major cost for the service which usually is in the several tens of dollars per month.


Please cite evidence to support this assertion. At least for the ISPs I have worked with & for the margins are pretty thin and while Transit/Peering costs are not the largest cost they are not insignificant. We saw large scale "streaming events", e.g. day long sports event broadcast on the Internet, had significant (localised) impact to the Transit costs and if they were permanent (e.g. your average 1 Mbps / user at peak time) they would have made a significant impact to the bottom-line.

Ben