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Re: [LUG] Issue with Newnet - Can ISP's change service once you have paid ?

 

viv wrote:
> 
> In a forum I was looking at of Newnet users, their CEO said that the service I 
> purchased 
> is not cost effective if users exceed 10gb of their usage ! I consider that he 
> should expect 
> users to use every k of their allowance and consider it a bonus if he has users 
> that regularly underuse it.

That is just a pricing issue.

They should clearly allow users to use what they have contracted for,
and it sounds like they are (with a little prompting).

But if most users only use a fraction of what they buy, then that is
something they need to assess in working out their pricing.

Te problem is that peer to peer networking is growing, and thus the
proportion of users using more of the bandwidth contracted, so the
prices have to move to reflect this.

What is scary is the margins they must be working to, if 10GB (I assume
it is bytes) is the level at which the profit margin shifts as that is
only 4Kbps (averaged over a month).

UK bandwidth has always been extortionately priced, thanks largely to
BTs monopoly in much of the country. The cable companies help somewhat,
but ultimately they have to link all their networks up somehow, and not
everywhere had suitable locations for Microwave links.

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