05-24-2012 01:54 PM
This article is very interesting. It breaks down the cost of internet in the most expensive place in the world, Africa. The cost of running a HUGE cable down it's coast, the cost of maintaining it, and it even bakes in a 200% profit margin. It shows a WORST CASE scenario of $50 for a 10 mbit connection per month. That's about what I pay for a 15 mbit connection in Chicago Metropolitan area. Pretty sad. Even assuming they forget certain expenses involved (They did include $300 million a year to maintain eg: Poor customer service, maintenance, and only a 10 year lifespan due to evolving technology), it's still an eye opener. Oh, did I forget to mention those people in Africa are streaming 3 HD movies silultaneously for 6 hours a day, using 21 GB a day as an example of the worst case scenario. Here in the states I'd hit my cap of 250 GB a month pretty quickly, or the new 300 GB cap they may soon be implementing. Again, it's all seen as a worst case scenario over in Africa and it's still costing about 8.3 cents per GB at 21 GB a day. We are getting ripped off.
05-29-2012 10:49 AM
cost is based on what the market will bear, not what the actual cost is to the company. This is america not africa. I guess you could always move to africa to get that price is you want.
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