Quote:
Originally Posted by Davy
The host has better economies of scale. I am sure they make a profit, otherwise there would be no hosts for tube sites.
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margin for margin against a tube customer profits are slim. The only benefit a host would get is if they were able to drop their commit prices due to larger commits, this works great if your not already pretty low.. but once your there where can you go? The benefit on volume is to gain peering relationships etc and it helps overall profit on existing customers
Remember back in high school math that graph that never reaches Zero? Same concept bw pricing will never reach zero contrary to what some people here might think.
Tidalwave already explained all of this though.