Netflix: ISPs who charge by the gigabyte are ridiculous

  • Thread starter Thread starter Sushubh
  • Start date Start date
  • Replies Replies 1
  • Views Views 2,999
Sushubh

Sushubh

Admin
Staff member
Messages
413,085
Location
Gurgaon
ISP
Excitel
Airtel
Not really related to network neutrality but this section was the logical choice for this post.

Netflix: ISPs who charge by the gigabyte are ridiculous

Wired ISPs have large fixed costs of building and maintaining their last mile network of residential cable and fiber. The ISPs’ costs, however, to deliver a marginal gigabyte, which is about an hour of viewing, from one of our regional interchange points over their last mile wired network to the consumer is less than a penny, and falling, so there is no reason that pay-per-gigabyte is economically necessary. Moreover, at $1 per gigabyte over wired networks, it would be grossly overpriced.
 
I fully agree. If we had to charge a content provider, it would be based on their connection to the network and any costs incurred, not per GB. Our peering will be something like maybe 3 lakhs a year - similar to NIXI, but without any additional usage charges, and content providers might be marginally more than that - say 5 lakhs a year. That works out to be like 14 paises per GB which is pretty reasonable.
 

Back