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The real reason your internet is slow…
by Administrator | Sep 22, 2017 | Uncategorized | 0 comments
Lets work with the NBN 100/40 plan as an example, these services are always with EVERY ISP “Up To” no ISP will GUARANTEE the product 24/7 it’s just the nature of the NBN, nobody can do it at the current market rates (wholesale purchase rates).
When you buy a 100/40 plan what you are buying is access to a pipe of data which allows for higher speeds, not physically 100/40Mbps of data per second, this is a major issue with the NBN wholesale pricing models and the way the original idea of NBN has been sold. NBN Co charge a wholesale rate of around $17.50 per Mbps of data, so you could imagine if every customer wanted that guaranteed 100/40 day and night, the minimum cost would be $1,750.00 per month PLUS you add on the cost to run the network, servers, maintenance, wholesale IP transit, ll centre staffing so on and so forth.
When you hop on speedtest.net or alike and run a speed test, its not really an accurate representation of your line or how fast your service is, its more-so just an entitlement thing. However alot of people will see that their service is performing well around 80-100Mbps, this is because the ISP has bought for example 500Mbps of speed (this is where CVC comes in) and they are sharing it amongst a group of customers say 100 customers maybe more.
Now most of the time if your at home streaming netflix on 4 devices, downloading a game, listening to music and surfing the web all together at once you may be using say 4.5 – 10Mbps of CVC.
So ISP’s play the balancing act. Good ISP’s will watch the load of CVC being pulled, and monitor. Of that 100 people using the 500Mbps CVC pipe, lets say only 50 people were online at once, and at the same time they were only doing the general tasks and only using around 4-5Mbps then everything is great, theres 100 people paying for the service so the bills get paid, the customers can hop on speedtest.net and see 100/40 on the dial because doing the math 5Mbps * 50 users = 250Mbps so they are happy, and most of all the customers can use the internet soundly with no slow down such as movies buffering etc.
If you’re still not with me, basically the speedtest.net check is quiet useless… Its good to check if your ISP is buying enough CVC bandwidth, however its not an accurate representation of your service performance.
Now lets get realistic.
Most ISP’s are not putting 100 people on a 500Mbps pipe of CVC data… Why? well its simple math… $17.50 * 500 (500Mbps Pipe) = $8,750.00 WHOLESALE which means we would have to charge our customers $87.50 per month and guess what, that would just be paying NBN co!!! On top of this, we have to pay our suppliers about $15-$20 per Mbps for another thing called IP transit, which is bascially the cost for us to rent the line from the “Internet” to the NBN Co POI “Point Of Interconnect” where it connects to your home. Like a toll road, they too charge us to drive on their road, just like NBN co charge us to drive on their road. So realistically speaking lets double the cost of your service per month, we’re now at $175.00 per month, nobody wants to pay that right? Well thats when you get ISP’s sharing the load, they start putting maybe 300+ people per 500Mbps pipe of data, and sure thats totally fine, aslong as if every user were using their service they’re phisically using no more than 1.66Mbps of data at the same time, or theres only 50 people online at once then everyone can use up to 10Mbps of data at the same time. The big issue is the power users, the ones that come on-board and suck up 20-50mbps of CVC pipe constantly… This is why alot of ISP’s come out with the :Fair Use Policy” its not fair use against the ISP, its fair use to your neighbours who are using the same pipe of data you are on. And then this is where the next big issue comes in, customers respond to these fair use policies with responses like well im paying for it why cant i use it.
This is why Businesses pay $3000-$4000 a month for their service to get guaranteed pipe of data setup direcly to them, nobody else to share the connection with.
So what you REALLY want when choosing an ISP is not the one that has the superfast peak speeds to make that speedtest.net needle go crazy, not the one that says they are buying monsterous amounts of CVC because they would be blatently lying to you, not the one that promises supercheap pricing because they will either disappear in 6 months or they are also lying to you. You want an ISP that can deliver quality of service in the following forms.
All of your home, devices & equipment can remain connected concurrently and can be used when you want them however you want them… And how do you find an ISP that does this? well theres a few things you should really be checking.
1. Whats the physical load on the network in peak times? this will give you an accurate indication if the network is overloaded or its well looked after.
2. Good value for money. It’s like the old saying, you pay peanuts and get monkies. There is an ISP which is collapsing in Australia right now because they couldnt afford to pay their bills and that means their clients have been left without internet for other 3 weeks… and although that supercheap price may be enticing to begin with it may not last.
3. Is their support based in Australia or overseas, and what is the response / resolution times… This is a big one… If you have an issue you want to know that you can get it resolved whilst keeping the hair on your head.
4. If you’re a gamer, a heavy robo user, you’re looking for performance grade internet with little to no ping times, heavy download usage ETC leave the cheaper networks to the general population and go for a product thats built for you such as the platinum product on our website. Its like the big tall football player wouldnt buy the pink suzuki swift to drive around in would he?
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