Why is DSL so much more cost effective than DSL? The inherent
diminishing returns of broadband speed. When you doble the
speed, you halve the download time. Here are some completely
fake numbers just to demonstrate . If it takes 30 seconds to
download 1MB at 500Kbps, at 1Mbps it takes 15 seconds. At
2Mbps, 7.5seconds. 4Mbps 3.75 seconds. So you are doubling
larger and larger numbers, at the same time halving smaller and
smaller numbers. The gap gets really big really fast.
How fast? Here’s a graph showing the time saved at a few points
between 56Kbps (dial up) and 6.0Mbps (fast Cable). You see that
93.5% of the time saved on this scale is achieved at 768Kbps,
the $14.99 price point for DSL. So with a typical Cable price of
$40-$45/month (introductory pricing not factored) you are paying
up to 3 times as much for only a 6.5% gain in time savings.
Believe it or not this is the short version of my article.
Cheers,
J Andrew Morrison
Tags: DSL vs Cable DSL cable Broadband Comcast Cox Verizon ATT Qwest Roadrunner