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April 9, 2005

Absolutely relative

James Enck points to a DSL broadband deal offering 8Mbps download speed and a 500Gb monthly cap. Compared to the competition, this is generous. But let’s put these scarcity business models in perspective, shall we? A 500Gb cap on an 8Mbps download means you can still only operate your DSL line at solid full-tilt for less than 6 full days a month. Would you buy a house where the heating only worked on Tuesdays and Thursdays?

Perhaps these services would be better advertised using two numbers, peak and mean speed. For BT’s basic broadband package with a 1Gb cap, would you be so keen on a “broadband” product than only allowed you less than ½ a kilobyte per second average transfer through the month - a mere fraction of an unlimited dial-up account?

UPDATE: On the other hand, the wireline operators don’t hold a candle to the wireless ones at spreading scarcity. If I wanted to use my pre-pay handset as a Bluetooth modem, that 1Gb would only cost me, um, £7600 (about US$14000). Bargain!

Posted by Martin Geddes at 9:42 PM
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