Capacity vs Speed

A friend asked me once why haven't the residential speeds of ISPs been upgraded for a long time. So in the span of about 6 years, my 384Kbps was upgraded to speeds up to 5 times (2Mbps). I'm not sure if that's a huge jump in speed but I was hoping for a bit more. I told my friend -- it's all about capacity, not speed. Our total connection is a 4Mbps business line and on a regular day, with a good mix of customers, the individual workstations get a good share of the 4Mbps internet speed. Let's say each one gets an equal 400Kbps -- and all types the customers are satisfied with the Php15 per hour we charge them for that allocated speed. If we upgrade our connection to 8Mbps, then offer Php25 per hour for the faster allocated speed of 800Kbps (8Mbps/10), very few customers will be opting/paying for the higher rates. Most will still stick tot he 400Kbps speed at Php15/hour. Read more in our articles including "It's all about Capacity, not Speed" and "Google Year in Search 2025 for Philippines revealed".