Tag Archives: transit costs

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Why Is the American Internet Empire Crumbling?

The colossal labyrinth of pulses and wires we refer to as “the Internet” is sort of like the jumble of wires and plugs behind your uncle’s VCR. Sure, it works — but it’s largely improvised, and for the love of God don’t touch anything. Much like that old VCR, America’s network infrastructure is often a bit dated in terms of infrastructure. This has become increasingly clear in the past year as policy changes around Net Neutrality and regulatory standards have been riling up consumers, Internet providers, and Internet access advocacy groups alike. Overall, one thing is clear; the US has some issues when it comes to the modern innovation it helped give birth to. The heart of the trouble goes… Continue reading →

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How Much Does Data Really Cost an ISP?

For consumers in the US, broadband data can be surprisingly expensive. Since the introduction of data caps, Internet subscribers have been frustrated by overage fees ranging anywhere from $0.20–$12 per gigabyte. The seemingly arbitrary fees are particularly frustrating since it’s unclear how much it actually costs an ISP to deliver that gigabyte. One thing’s for certain — it costs a lot less than the $0.20/GB fee charged by major ISPs like Comcast and AT&T. But how much does it actually cost the ISP to deliver 1GB to a customer? Calculations based on Internet transit costs, as detailed below, suggest an ISP cost per gigabyte measured in fractions of a penny. Using the $10/50GB overage fee quickly becoming standard for broadband… Continue reading →