So basically for a line that transmitting 1mbs continuously every month, the cost even in the inflated scenario is 419+236= 655 rupees.
Now with a contention ratio of 1:4, it costs them 655/4 (or you can say the cost is spread over 4 subscribers. Its written in their terms mostly.)
So around 164 per subscriber.
The line's throughput (capacity) is around 10.8gb at 1mbps per day. or 324gb per month.
So even if the FUP is a generous 100gb. That means they can fit in not one 3 subscribers here. So dividing the cost by 3 again, it comes to 54.5 ~ 55 rupees.
All the calculations above are in case all the subscribers are using it at peak capacity. Which isnt the case most times and hence the contention ratio which with the current usage pattern you can say is 1:12 and not even 1:4. Hence its cheaper for they companies by a few more folds around 20bucks per 1mbps line they sell with FUP and sharing.
I just realized how wrong the maths is on this post. What you've actually done is contended the bandwidth twice and I somehow managed to miss it earlier (may have been tired).
If the contention ratio is 1:4, then 655/4 = 164 rupees, but that also means 324GB/4 = maximum 81GB per user per megabit sold. Assuming you want to let 100% utilization be on your network (unlikely) so multiply that by 75 percent and get 60GB per user per megabit sold. The higher the contention ratio, the less the allocation per user per megabit (20GB if you want to go to 1:12)... THAT is what you'd get for your 55 rupees...
But add salaries, taxes, equipment, domestic transit (the costs of which are often higher than the international), miscellaneous overheads, operational expenses and profit, average it all out across the entire country and yeah... the cost can very well come up to a few hundred bucks (subject to the metrics of individual companies of course) but in reality, yes, the actual cost of bandwidth in my case only a small percentage of my overall cost of delivery.
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At the end of the day, MTNL/BSNL provides much cheaper solutions than private players who offer capped/FUPed unlimited plans.
MTNL also loses 700Cr a quarter and BSNL magnitudes more than that, and as government companies both get propped up by the taxpayer.
mgcarley,i want to ask you if your business in mumbai is turning healthy profits for you since that (i think) will be the the first requisite for hayai to expand smoothly into other areas of india(for eg. delhi/NCR etc.),or am i wrong to say that?
Cashflow is sufficient, but being that the money used to start the business is not free (as in, we should be paying back the investors and interest on loans and that sort of thing), profit is not yet "relevant" for us in the traditional sense.
Expansion is not a question of profit, it's having the money available to do so - we have some, but not yet enough to come to Delhi (we still have a lot to do in Mumbai), so we are actively seeking our next round of funding. It is probably going to take around 100Cr per metro just to get a decent coverage (that's not even complete, but enough to justify it).
and any hayai user here?can anyone confirm if a hayai connection is as sweet as it seems?
I don't know if any of our users are on TE. I know some are praising us on Twitter recently, none will be on IBF again yet as they're not ready to re-open our section just yet.
also if one takes hayai's 100 Mbit plan or for this matter even the 1000Mbit plan,than can one even expect to see such speeds being practically "felt" ,will the servers of sites return the favor with such high speeds?
In all likelihood, no. 100 or 1000mbit/s is important when you have multiple people doing multiple things - a single user is unlikely to get 1000mbit/s simply because their hardware can't handle it - either due to some bottleneck or in most cases because they buy laptops which only have 100mbit network cards.
Someone with a brand-spanking new PC with SSD hard drives and a powerful processor, yeah, maybe, but the average person probably not. A lot of people are able to get 100 easily enough depending on what they download and from where... you won't get that from a server in the US or Europe or Bittorrent, but there wouldn't be anything stopping you getting multiple 20-30mbit downloads going - I usually get 9-10mbyte/s on bittorrent only when I'm downloading more than 1 file - or using a download manager like Getright.
You *could* get such speeds on a single stream from select sites that are using content delivery networks, but the rest usually comes down to bottlenecks at their end, distance, networks and any number of other reasons. From certain sites they simply have the server rate-limit the speed per connection which makes the use of a download manager necessary (as I already mentioned).
But yes, for a single user, around 30mbit/s is enough. Once you get past around 30mbit/s you need other people to be using it for the speed to be really effective. The point of having this high speed is so that one person can't affect another - 2 people can watch HD video streams at the same time without causing each other to drop out or 1 can download files and the other can watch Youtube at 1080p comfortably no problem.