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« on: September 14, 2008, 10:51:45 am »
The reality is, however, that the dollar per megabit cost, even in large bulk transit pipes, is just so far below what you pay for month for Comcast for the advertised connection that there's no way that ends will meet if you actually consume that much. This has pretty much always been true. Residiential ISPs need to oversubscribe to survive, because there are just not enough residiential customers willing to pay the price for dedicated bandwidth and enough overhead to cover the ISP's other support costs (last mile connectivity, plant maintenance), and enough for the ISP to even begin thinking about making any sort of profit at the end of the day.
These ISPs have never really been selling unlimited bandwidth, if only because given how oversubscribed they are, it's just physically not possible for everyone to burst their link at full all day and receive their full throughput.
Now, sure, advertising things as unlimited despite that is at best deceptive, and at worst probably legally questionable, especially given the FCC's recent actions against Comcast. Comcast has sucky business practices, but any other ISP that you choose is not going to be really selling you "unlimited" bandwidth. At least, not unless you are buying something like a T-1 or a hard commit at a reputable colo facility, and those are much more expensive (orders of magnitude) than a residential cable hookup in terms of what you would be billed for (and the latter would only help if you lived at a colo facility, something that the building maintainers would likely take exception to).
It's pretty much a fact of life, though, that if you see "unlimited" (most) anywhere, that's not really unlimited, just "more than we think that the average person will use" (at best), or "shady", and with a low limit (at worst, and not too uncommon, actually).
iago: You should perform some research into who provides that company's upstream connection. I have been reading a lot about small, local Canadian ISPs that lease lines from the big giants (e.g. Rogers) getting hosed and having the ISP they are renting lines from, or their upstream provider, perform their own rate limiting and go back on their commitments to said small ISP.