Quote:
Originally Posted by Brad Mitchell
What I can say with confidence and without hesitation is basically if you "need" to buy bandwidth at $3-$6/megabit to be profitable then you're fucked for now. Hundreds have built a business upon costs which don't truly exist in the marketplace. Because a few companies have retailed at these rates successfully for some amount of time there is now a completely inaccurate perception of reality.
You don't know because it's not your job to, you're not a host. What you *think* you know about peering and wholesale rates is entirely incorrect, this even applies to some of my host competitors.
You may choose to believe that this range of retail rate for server, bandwidth, support or even just raw bandwidth is sustainable. It is not, it is completely below cost for even the largest buyers of bandwidth in the marketplace. What you see or have seen in the marketplace is a complete pharse.
|
I hate to beat a dead horse here, but there are like half a dozen companies right now offering to match Alpha Red's pricing to get their customers.
I've also seen at least 2 $4/mbit specials with a server included in the past week.
It appears this "pharse in the marketplace" is going to continue, in which case, maybe it's not a pharse at all but just the way things are going to be from now on.
