1. 4

  2. 1

    That’s pretty terrible, if at all accurate.

    I will point out that, at the consumer end, the cost to provide service is not driven by bandwidth (in most parts of the world) but by getting cables out to customer locations, customer service, and maintenance. The difference in cost between 15 Mb/s and 915 Mb/s is tiny when delivered over the same equipment, but it’s the only point of differentiation that mass-market customers understand.

    Overall, the situation described sounds like the smallest, least-well-run local ISPs in the US in the 1996-2002 period, where thousands of people leased T1s and bought a couple of cisco 25xx and had a rickety shelf full of individual 14.4K modems. (I was there, I saw it happen.) The solution there was consolidation by ISPs who could manage their systems more effectively, reduce the cost of customer service and reduce churn.