back to article Price war looms in corporate 100Mb market

A corporate Ethernet price war could be on the cards, with a newcomer using Next Generation Network (NGN) technology to offer 100 megabit Ethernet for £800 a month. Commercial Internet and other services have been, traditionally, based on legacy systems and up to six months ago the bulk of customers were asking for managed …

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Coat

100Mb?

Hey, I've got GigE and I don't have to pay a monthly fee!

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£800 a month ?!

Remind me again what kind of bandwidth they have in Taiwan and for how much ?

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bandwidth

there is a difference between bandwidth, and how much you are allowed to use. Virgin will give you 50mb for about £40 per month under their new 'extra large' broadband - but only 10 GB per day - i.e. 27 minutes worth. After that you'll get throttled back. (I'll stand to be corrected on the details - but it's about right)

This is 100mb 24/7 - i.e. just over a terabyte per day. (maths right - seems quite a lot?)

That's quite a lot - and quite cost effective per gigabyte of data.

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@ £800 a month

About £25/month in Sweden for 100Mbps, but for a consumer rather than a business connection.

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Anonymous Coward

@Pascal & John..

The clue is in the title: Price war looms in CORPORATE 100Mb market’

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Wow, only twice as much as the US, and single-homed

Cogent have been offering dual path 100Mbit in the US, provided your building is wired up, for US$900 per month without bandwidth restrictions.

OK, so I hear that the bandwidth isn't all that great in terms of quality, but not having used it, I'm taking that with a pinch or few of salt.

Not sure if the offer is still on, but it was on for quite a long time last time I checked.

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Anonymous Coward

Not as 'special' as they'd like us to think...

The price quoted is likely to rely on customers being located within a certain reach of their PoP, based upon standard Openreach WES distance-dependent pricing, subject to survey (i.e. buildings with available fibre etc.)... As their network is relatively limited few will get this price.

Technically the analyst is right - others can copy this. However several competitors of EE are already doing this and have been for years - all it is is delivering separate rate-limited VLANs (one for each IP service, such as Internet, SIP, MPLS) down a single Ethernet circuit to the customer, its not rocket science.

So this is EE announcing something that is not new, that others are already doing, with a headline price available only to certain potential customers.

Situation normal in the telecoms industry... However kudos to them for getting the PR :-)

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How is MPLS a 'legacy' protocol

MPLS is anything but a legacy protocol, its actually an NGN protocol that delivers on a lot of ATM failed promises such as real QoS (if deployed natively and end to end, i.e. not stacked on top of ATM or some other legacy protocol).

Other than that i'd say 'All power to their arms', high bandwidth corporate networks have always had unjustifable prices and its about time this market became commodised and the prices were brought down to reality.

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