cancel
Showing results for 
Search instead for 
Did you mean: 

peak time usage allowances?

N/A

peak time usage allowances?

so come on - how are other isps managing to offer larger quotas for peak time usage. We've seen 50gb for £25 and variations on it. So why do we only get 10gb for £22 at Plusnet with a clean allowance?

Or are plusnet really now a dead duck for us and we really should consider switching?
11 REPLIES
Plusnet Staff
Plusnet Staff
Posts: 12,169
Thanks: 18
Fixes: 1
Registered: 04-04-2007

peak time usage allowances?

That 50GB product you mention over what hours are they classing as peak?

What happens when everyone decides to use their peak time allowance at the same time?

is the ISP making any money on that product?

The costs of providing ADSL are very well known and anyone using 50GB and paying £25 is going to be costing the ISP quite a bit of money. If they get that mix of users wrong and they cost of the heavier users is more than the profit on the lighter users what do you think will happen?
N/A

peak time usage allowances?

peak is 8am to midnight on that product as far as Im aware. Plusnet had a similar product to this not so long back - it must have made you money then!!
N/A

peak time usage allowances?

wizardpc,

PlusNet have determined that it wouldn't be profitable for them to have an allowance like that - more power to them. It may be possible for other companies to offer it (different cost structure, trying to gain customers, etc.) so it's up to you as a consumer to choose.
Plusnet Staff
Plusnet Staff
Posts: 12,169
Thanks: 18
Fixes: 1
Registered: 04-04-2007

peak time usage allowances?

I don't see how the cost structures are going to be that much different. Every ISP using IPStream has the same BT port costs and same BT Central costs. Unless they are off shore then VAT is going to be the same too.

At £25 you have £8.40 for the BT port cost, and £3.72 for the VAT leaving £12.88 per month to cover every over cost.

A 622 central costs £1,496,760.00 ex VAT per year.

Running flat out it can transfer

622 / 8 * 60 * 60 * 24 * 365 / 1024 = 2,394,457GB per year

1496760/2394457 = 62.5p per GB

so 50GB costs £31.25, and that's running the pipe flat out 24/7. Just providing 50GB between 8am and midnight and that cost rises to at least £46.88.

So without any other costs, building, servers, staff, etc. as well as a profit margin anyone using 50GB between 8am and midnight costs an ISP at least £59 per month.
N/A

peak time usage allowances?

fair enough - I understand tha maths but something is wrong then.

1. Other companies are doing it - they can't all be losing money.
2. Plusnet did it too for quite a while - so how did PN make money if what you say is true?
N/A

peak time usage allowances?

I suspect the maths work differently if you use different size centrals ... and the 622Mbit centrals are lit segment at a time, which can only be beneficial if they have different costs associated.

Try offering us the cost of a 155Mbit pipe and re-running those calculations.

Under the calculations you provided an average consumption of 20GB per customer per month would bankrupt you ... which can't be right, as you're offering 15GB peak plus as much as you can eat for the other 16 hours of the day.
Plusnet Staff
Plusnet Staff
Posts: 12,169
Thanks: 18
Fixes: 1
Registered: 04-04-2007

peak time usage allowances?

If you can create a balance of light and heavy users so that the profit coming in from the light users is higher than the loss you make from heavy users then you are OK. But as that light/heavy balance shifts away from the light users the profit decreases and at some point you'll hit the loss making point.

I don't expect that every ISP will be making a loss but unless you have a close control over that light/heavy balance it doesn't take much to tip it over the edge, especially with the faster speeds.
N/A

peak time usage allowances?

This is one area that I have very few qualms with with PlusNet. They've been upfront about the costs and what they can feasibly provide with the current system and explain it pretty well. A number of the comms team, marketing and customers (such as Kitz) have gone into it in great deal and although it is a complex and changing area, I feel a lot of customers are expecting too much for what they pay.
N/A

peak time usage allowances?

so are we to presume plusnet lost money hand over fist for years before this year? I think not.

I cant believe it's so easy for others to offer higher d/l levels and plusnet cant
N/A

peak time usage allowances?

Quote
so are we to presume plusnet lost money hand over fist for years before this year?


End of year accounts for 2005 show:-

Turnover increased to 35million
Customer numbers increased by 96% to 176,000
Operating profit up 2million to 4.9million
Profit for the year 3.4million.

Maybe we can have an extra pipe bought out of the fifty six thousand pound BONUS's the chief exec got last year? Actually, that would easily pay for a new usenet server or two... hmmm......
IanD
Grafter
Posts: 149
Registered: 01-08-2007

peak time usage allowances?

I'm with sietchbar here as PlusNet seem to be very open about the costs of providing broadband. Surely the complaint is with BT wholesale and not the ISP selling the product on?

Nothing wrong with PlusNet making a profit (better hope it keeps on doing it too so that they stay around) as long as it isn't excessive. I'd rather they adjusted the peak times to keep things flowing but wish they were a bit better at communicating changes to us (and not making promises they can't keep).