<div dir="ltr">There is a couple reports I can't seem to find in my bookmarks, but they detail that backhaul costs have been the majority for at least the last decade (iirc one from iiNet back in 2003 or so). And certainly when compared with transit "internet" costs, something like a factor of 5 if I remember.<div><br></div><div>So really these ISPs are already dealing with these kids, and others, who do multiple TB per month already. And they allow it because of how the overselling works out, they budget on X users using Y backhaul on average, and they provide Z bandwidth quota to all of them knowing only 5% will ever use more than 10-20% of it. Netflix coming probably wouldn't affect it much, after all the people using 10-20% do already have access to youtube and other high bandwidth sites.</div><div><br></div><div>And if they ever faced massive congestion they'll just shape them, as you've experienced yourself. Or offer some cheap all-you-can-eat netflix package as ISPs around the world have handled it (actually with more than just netflix, in EU Usenet caused similar issues 15 years ago, then ISP-offered TV streaming 10 years ago, again to combat lack of multicast otherwise).</div><div><br></div><div>Likewise with SL, they won't actually allow a bunch of kids paying $200/mo to push Gbps of traffic even over peering. You'll probably find the 20TB currently being offered in Melbourne is just there so it looks seemless with their other locations (ignoring the +$50 for it), if it gets abused it will be back to 2TB for +$50, or 20TB for +500 which they've done before when people abused them.</div><div><div><div class="gmail_extra"><br><div class="gmail_quote">On Tue, Dec 2, 2014 at 4:42 PM, Oz Nog <span dir="ltr"><<a href="mailto:oz.nog@yandex.com" target="_blank">oz.nog@yandex.com</a>></span> wrote:<br><blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex">A fat load of good your excellent interconnectedness is going to do you when all the costs are in last mile backhaul.<br>
<br>How many kids like that can your ISP business take? Where's that money going to come from? Your fat cat ISP margins?<br>
<br>To add insult to injury, in addition to the kid and his 1Gbps server, you already know that you are in for minimum 30% base rate increase in domestic backhaul costs as soon as Netflix lands.<br></blockquote></div></div></div></div></div>