What’s the cost of a true guaranteed speed?

So people are asking for a minimum guaranteed speed. How about a true guaranteed speed? It’s when you subscribed to a 1Mbps line and you constantly get 1Mbps speeds anytime, all the time.

Apparently, getting a the true speed you subscribe to isn’t cheap at all — not by a mile.

According to fellow blogger Migs in the comments section:

A 2Mbps E1 sa Smart would cost between $1,500 to $2,000. Globe is offering it a bit cheaper — around $900 to $1,300 per month.

In a 2008 thread on Istorya.net, a 2Mbps leased line with Globe costs Php15,000 per month which also gives you 6 static public IPs.

At TipidPC, a 256Kbps leased line with Globe costs about Php7,000+ a month.

The benefit with leased line is that you get 99.99% uptime and a CIR or committed internet rate (some sort of a guaranteed minimum bandwidth speed). When these guarantees are not met, the ISP gives back rebates to the customer.

These type of packages, though not really that fast, are usually used for mission critical businesses where uptime and consistency are of utmost importance. That’s the reason why there’s a huge difference in guarantees with a 2Mbps residential line and a 2Mbps leased line.

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Avatar for Abe Olandres

Abe is the founder and Editor-in-Chief of YugaTech with over 20 years of experience in the technology industry. He is one of the pioneers of blogging in the country and considered by many as the Father of Tech Blogging in the Philippines. He is also a technology consultant, a tech columnist with several national publications, resource speaker and mentor/advisor to several start-up companies.

43 Responses

  1. Avatar for Neil Neil says:

    Not really expecting CIR. Am fully aware that residential lines’ speeds are not guaranteed to stay within promised/advertised. I choose to view it as similar to those “contents may have settled” thingies on jelly beans packaging.

    …pero OA naman kasi yung difference ng promised speeds sa naaachieve ng residential lines with some telcos (well, with ALL telcos, depending on the area) – An unlimited 1mbps subscription that averages 50 to 90 kbps on off-peak hours? Rip-off na.

  2. Avatar for Night Night says:

    @no to bucket pricing maybe out of topic but he is right. stop promoting bucket pricing yugatech. parang unti unting binibrain wash ung mga readers. masaya na kami sa unlimited =)

  3. Avatar for JM JM says:

    not to disappoint you guys, pero I’m subscribe to a 1mbps residential connection..ang I get constant speed, anytime..all the time.. I even exceed that speed a bit. I’m happy with my ISP as of now..I’m paying 1,000 a month on top of my Telephone line.

  4. Avatar for Jonaflormicfren Jonaflormicfren says:

    To smart and globe, it is the volume of user and capability of signal that decides the continuous speed. No one among these network can guarantee you a steady and continuous speed of internet connection at all time. http://iloveyou-mydear.blogspot.com/

  5. Avatar for ricardo isip ricardo isip says:

  6. Avatar for ricardo isip ricardo isip says:

    @fleeb, if you pay for it, it becomes a right… heheheh

  7. Avatar for Fleeb Fleeb says:

    As what it stands today, is Internet connection a right or a privilege?

  8. Avatar for Paul Paul says:

    Er, leased vs residential lines. I thought leased was another term for residential, heh.

  9. Avatar for Paul Paul says:

    ^ I don’t like bucket pricing too after what the Canadian ISPs did, but you my friend are very offtopic.

    This article doesn’t refer to bucket pricing at all, it’s about leased vs dedicated lines.

  10. Avatar for NO TO BUCKET PRICING NO TO BUCKET PRICING says:

    What’s wrong with this blogger trying to push through bucket internet plans here in the Philippines?

    MR. YOU GOT TECH, our country is lucky to have internet service providers who offer unlimited internet plans. YOU HAVE NO IDEA kung anu-ano ang pasakit na dala ng bucket data plan.

    Now let me GIVE YOU SOME.

    Take for example, here in the United States, AT&T offers $80 (about P3200) plan for 5gb of data transfer, THAT IS INCLUDING UPLOAD TRANSFERS. The bandwidth speed differs and ranges from 1-3mb/s which is a good side of this.

    Let’s say, you’re an avid YouTube watcher, or one who uses Netflix and the likes. These will all eat up your monthly allowance, sa download palang. Gaming consoles (PS3, X360) takes up a lot of upload bandwidth. An anti-virus update’s file size can take up to 1mb, now do the math if you set it up to update every hour. AND JUST LIKE YOU, web hosts there in our country will suffer.

    There are too many downsides, I tell you. Would you pay for $80 just for downloading 4 DVD rips from utorrent? How about $80 just for 2 whole days of Skyping? Or $80 exclusively for serving your blog’s visitors for 2 weeks?

    THE ADVERTISEMENTS AND REBATES are what you gotta ask to get fixed. P1000 for 512Kbps doesn’t sound bad at all.

    I’m asking you to please, please, please, stop writing about bucket pricing’s advantages. Or at least, post but include the disadvantages. You have a big voice in the tech industry. Heck, even Globe and Smart are trying to implement the method after your posts. Please stop this now or you’ll become the root of our nation’s possible additional burden.

  11. Avatar for XXIX XXIX says:

    Globe Broadband in my area has consistent speed and almost no down time (except Ondoy which took 5 months for my connection to be restored). I’m a subscriber for 4 years – 2MB residential plan.

  12. Avatar for Fleeb Fleeb says:

    @Jhay: if you have a good case (mine for example happened almost two years ago, I have logs of calls / support tickets), they will apply the rebate on the next billing on a prorated basis. They are still doing that, though I haven’t had any problem for the last year.

  13. Avatar for prince_don prince_don says:

    hmmm.. so far masaya ako sa SmartBro ko…
    here in my area in Ayala Ave, i could get 150kb/sec download :) mabilis din ang upload nya.

    like your previous articles, i think im lucky because my area is really not a residential area so chances are, akin lang yun base station or whatever dun sa area namn…

  14. Avatar for Lyra Lyra says:

    Just wondering, I get a stable speed at 1mbps every time I check my speed at speedtest.net. Is this the same consistency that you guys are talking about or not?

  15. Avatar for John Alvero John Alvero says:

    Jhay, we are talking about links with guaranteed speed (if there is such thing) or SLA. But even in Leased Line (LL) or frame-relay (FR) links, ISPs also impose some kind of CIR. Say for an E1 link, depends on contract, you will probably have 128 CIR, again that depends on contract and SLA.

    As for pricing also depends in your account manager. Very important to have a very good relationship with account manager. Existing ISP competition and ISP capacity is also taken into consideration.

  16. Avatar for manaka_junpei manaka_junpei says:

    that depends on the infrastructure, sana pinaganda ang serbisyo at affordable sa mga Madla kagaya nang mga mas-low pa sa average.

  17. Avatar for Jhay Jhay says:

    I don’t know how Globe computes for the rebates it gives to customers. Back in 2006 when my broadband connection has been intermittent for almost four months, they gave me a rebate but only on the 3rd month and after I kept on calling their customer service hotline and pestering them for the rebate.

    When I saw my bill with the supposed rebate, there was only about a reduction of 10%.

    This is another thing we need from ISPs, more transparency about billing and rebate policies.

  18. Avatar for John Alvero John Alvero says:

    Talking about rebates, Globe will apply the rebate on the next billing, for Bayantel you will have to APPLY for it or maybe even contest it. This was in year 2003. Not sure now.

  19. Avatar for GUMZ GUMZ says:

    Speed is directly proportional to Cost

  20. Avatar for NemOry NemOry says:

    parang wla tlaga true guaranteed speed

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