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Subject: Re: Economic issues for ISPs (was: RE: IP limits from RIPE?)
From: Patrik Fältström <[log in to unmask]>
Reply-To:Network management discussion for Nordic region <[log in to unmask]>
Date:Sun, 15 Dec 2002 21:00:35 +0100
Content-Type:text/plain
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On lördag, dec 14, 2002, at 13:00 Europe/Stockholm, Lars Michael
Jogback wrote:

>> PS. First time I heard about the price for broadband to the home and
>> comparing that with the cost of a monthly bus ticket it was Peter
>> Löthberg in 1997. I'm not sure he knows more about bus tickets than
>> networks.  :-) DS.
>
> The problem with comparing residential broadband with bus-tickets is
> that bus-ticket pricing is highly subsidized from the government.

The main reason Peter compared with a bus-ticket was because broadband
has succeeded if it is as costly for a company to get broadband to the
home of a person as paying the monthly bus pass. I.e. no cost
difference.

Now, some people claimed the cost would be 200SEK/month for broadband,
but, many years has passed since it cost only 200SEK/month for a bus
pass in Sweden. Anywhere.

My guess (and calculations when someone claimed 200SEK/month was the
price) is that the real cost can go down to 750SEK/month _just_for_ip_,
and then cost for email service, hosting of webpages etc should be
added. This sums up to around 1000SEK/month because services are cheap
if run correctly. Today services are expensive (in the form of HR for
example) because every carrier of IP is also supposed to have email,
web hosting, news etc.

And, the 750SEK/month is after the government has helped by modifying
the cost by seeing that the price is realistic payment of the
infrastructure of the copper/fiber/whatever over the full lifetime of
the media (and not overpriced either).

    paf

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