What's the cost of a true guaranteed speed?

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.

Abe is the founder and Editor-in-Chief of YugaTech. You Can follow him on Twitter @abeolandres.

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43 Responses

  1. NemOry says:

    parang wla tlaga true guaranteed speed

  2. GUMZ says:

    Speed is directly proportional to Cost

  3. 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.

  4. 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.

  5. 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.

  6. 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.

  7. 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?

  8. 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…

  9. 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.

  10. 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.


    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.

  12. 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.

  13. Paul says:

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

  14. Fleeb says:

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

  15. ricardo isip says:

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

  16. ricardo isip says:

  17. 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/

  18. 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.

  19. 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 =)

  20. 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.

  21. Manix says:

    Internet connection is and will always be, a service-related business–key word is business.

  22. Manix says:

    Hi Abe, the prices you mentioned, was that really in USdollars?

    anyway, i’m paying ~Php3000/mo. on 10Mbps download/ 1Mbps upload guaranteed speed, and its really unlimited.

    i’ve tested it several times, and it goes to 11Mbps so that the ISP can guarantee the 10Mbps contract.

  23. Biggie says:

    @Manix, that probably works for you since you use it alone or with 2 or 3 other users. Do you think you still get that speed if you operate a call center with 100-200 seats? I dont think so too. Thats why there’s leased line Internet. Guaranteed speed that comes with a price. Eastern Communications offer their 2Mbps line for $800 or around P35K as of yesterday.

  24. Wendal says:

    Haha $80 for 5GB on AT&T? First of all, that’s for 3G tethering (ie. not your in-home broadband connection). Secondly, it’s $50. Are you trying to be annoying or just ignorant? You download DVD rips while sitting with your laptop at Starbucks? I think ISPs should put all heavy users in one group, unlimited, and let them eat up each others’ bandwidth and compete for speed all day. Then let folks who just want to reliably video chat, game a little, check emails, and browse share another “group”. I say cap, throttle, do anything that needs to be done to make the limited resources we have fair for everyone instead of having pirates abuse the line and ruin the net for everyone else.

    I’m too lazy to type anything else because what you said is so foolish that my brain melted.

  25. Epstein says:

    I am on a 1mbps residential plan with PLDT but my speed since last month is 2.5mbps. I am still paying the same, I don’t know what happened :D Our neighbor reaches 3mbps.


  26. surfer says:

    sandali lang, why is article writer and everyone here mixing the costings of a leased line and residential subscriptions?

    totally different ang leased lines as they are in speeds of MegaBytes. emphasis on “Bytes”. 1 Byte is equal to 8 bits. Hence it is faster. Denoted using the subscript KB as in capital KB.

    residential lines on the other hand are MegaBits. this time emphasis on “Bits”. Noted using the subscript Kb with a small b.

    the problem has nothing to do with guaranteed speed. telcos are selling us misleading products. telco provider marketeers are using the wrong terms, hence we expect more but we get less. Megabits is definitely slower than Megabytes and Megabits is what is provided to residential subscribers and not Megabytes as they advertise.

    • Clay says:

      Dear Yuga:

      I enjoy your explanations as I am such a novice. We are located in a remote part of southern Leyte, Padre Burgos. We have a Globe 3G system up, but its access to customers is restricted by the mountains. I am wondering if it makes sense to set up aerials on the mountain top, and then shoot the signal to users down below…making a 25km network. I think they sell basic service for 999p per month. We also have a provider who has captured a dsl signal and is using a reflection system to bring the signal in to the community, at the same price as the 3G….I would appreciate any comments or advice you might be willing to offer in sorting this out. Salamat, Clay

  27. surfer says:

    “Internet connection speeds are expressed in terms of data transfer rates in both directions (uploading and downloading), as bits or bytes per second. Abbreviations are unfortunately not standardized, making it easy for customers or potential clients to confuse a bit and a byte when trying to determine bang for the buck. For example, a speed of “750 kbps” might be misinterpreted by a customer as meaning 750 kilobytes per second – or 8x faster than what the provider means.”


  28. Manix says:

    @Biggie, well, i was talking about personal/home use.

    of course, if i am running a business, that’s another story. Enterprise situations obviously require different setup and requirement, and the business would have to cover to maintain the cost of guaranteed internet speed.

  29. surfer din says:


    Apparently, you’re the one who’s confused. You’re basically stating that the difference between a leased line and a residential line is because of misleading terms, and that leased lines are generally faster because they are measured in MBps instead of Mbps?

    You’re missing the point of the article. The difference why leased lines are faster than their residential counterparts – ke bits per second or bytes per second ang measurement na ginamit – e dahil dedicated line sya. Walang kaagaw, compared to residential lines where bandwidth is shared amongst several subscribers.


    Reply to Wendal’s comment:
    I don’t get you, $40 is for 3G 4GB plan. $80 for 6GB (sorry for my mistake, it was indeed 6GB so additional 2 DVD rips for AT&T guys) DSL + phone bundle. I’m not sure if these rates stay the same for every state. But other than that, I have no idea on a plan that costs only $50 (u-verse plan costs $100, but I have no idea on its monthly allowance).

    there are free hotspots here in the states but, hell, who would like to piggyback on these? Those who want their security breached? Not me. And of course, nothing beats having a personal connection at home. DUH!

    Reply to Paul’s comment:
    sorry for hi jacking this post, I posted the same comment on the appropriate post but I would just like to up the comment to the blogger.

    For those who as well, disapproves with bucket pricing, I SALUTE YOU GUYS! At least kayo, may concern sa pamilyang pilipino. Sa ngayon, internet ang major option nila to communicate with us OFWs. At kung may magpatupad ng bucket pricing sa bansa natin, di malabong dagdag pasakit nanaman sakanila (at saaming OFWs) ang makipag keep in touch sa amin.

  31. Rian says:

    Hirap talaga nyan kasi laging UP to ang labanan. Yung witribe nga pwede na rin pero mahal pa sa bandwidth.

  32. kiko says:

    No to Bucket Pricing

    I am happy with the consistent and unlimited 2Mbps downspeed and 0.5Mbps upspeed of my Globe Broadband ADSL+Globelines Plan 1295 for three years now.

  33. David Z says:

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

    As ricardo isip said, only if you pay for it. Besides, who else will if you insist on that being a so-called right?

  34. David Z says:

    Another thought and not sure kung nasabi na ito: is it possible big companies who use leased lines or so “help” subsidize costs to allow arguably affordable lines to residential users like many of us?

  35. Bokoi says:

    Ikaw ang confused. Hahaha.

  36. intersectRaven says:

    Here’s an article from Ars which talks about how the Canadians are reacting to metered billing:


  37. Miklos says:

    For Philippines to prosper we need to stop looking at US as an example because they are anything but a good example. In fact they are perfect example of what NOT to do – both when it comes to internet access and celluar access.

    We need to look towards Europe – look towards Sweden.


    Take Bredbands Bolaget (The Broadband Company) – they offer 100Mbit internet with 60Mbit minimum (anything above depends how much you are using of TV, VOIP etc. that runs over the network also) – at a price even Filipinos could afford – 1675 peso pr. month.

    Some will say – that is Europe we cant do that in Asia, well that isn’t true, you can do that in South Korea, Japan, China or Singapore easily.

    M1 in Singapore has 100Mbit for 2625 peso pr. month via Cable – or 2000 peso pr. month via fiber.

    Fact is that the infrastructure at PLDT (and in parts Globe) is ready for ADSL2+ which would bring the average DSL connection in Philippines to European standards – where 1500 peso is 20Mbit completely unmetered (no up or download limits).

    Here is the but – they don’t wan’t to invest in backbone connections and as such they keep the connections unnaturally low to avoid overselling their capacity too much.

    The Philippines are PERFECTLY situated to be the Asian hub for communications, but unfortunately for the Philippine people there is nobody willing to listen to this.

    If the islands here were properly interconnected with much more capacity than at current, and then new deepsea cables were made to all our neighbours, we would be the center of S.E.A. communications and create a huge new sector (proper hosting services for all of Asia, central hubs for all the worldwide backbone suppliers etc.) with loads of new jobs here in Phillippines.

  38. kristian says:

    GLOBE Advisory: Ur data subscription for today has reached 800mb. Ur remaining browsing hours will resume tomorrow subject to promo validity. U may opt to forfeit ur remaining subscription to browse for P5/15. To unsubscribe text POWERSURF OFF or SUPERSURF OFF to 8888. This promo is guided by Globe Fair Use Policy.
    Time: 27/02/2011 02:17:09

    What the F?

  39. Miklos says:

    It’s all PLDTs fault for not do in bi-latteral peering with anyone else in Philippines.

    All other ISPs you can reach without your packets leaving the country – with PLDT they go to Hong Kong, Singapore, Taiwan or Japan before reaching PLDT or vice versa.

    An example – PacNet (biggest backbone provider in south east asia) is in the business of selling international bandwidth. They have huge pipes going in/out of Philippines. Now they sell bandwidth to almost all ISPs in Philippines including PLDT, but when they asked PLDT for bi-latteral peering PLDT told PacNet that, that was only possible if PacNet bought bandwidth from PLDT……

    So PacNet sells bandwidth to PLDT and then tries to sell the same bandwidth back to PacNet at many many many times the price.

    PLDT is the failure of IT in Philippines, if the government wasn’t in their pocket they would do 2 thing:

    1) Telcos are limited to binding a customer (phone or internet/broadband) for a maximum of six months. (any country that has enforced this has seen prices plummit due to increased competition)

    2) All ISPs must connect bi-latteral to a free neutral IX run by the goverment – at minimum X Kbit pr. customer.

    There you go – these two simple things in place and Philippines is in top5 of internet in SEA within 5 years.

  40. guest123 says:

    @ surfer… moron… ang hina ng pang – intindi mo pre! engot..

  41. saintluci says:

    Tama si Miklos. 50% kasalanan ito ng PLDT.

    50% kasalanan ng NTC/Government. Ayaw nilang i-dictate ang peering.

    Madali lang naman eh… Use PLDT for local loops and the like. Never use them for Internet.

    But that is a dream. PLDT has about 50+GBPs upstream. The next rival probably has 30 or so gbps. Companies (80% source of ISPs revenues) will still choose PLDT due to upstream capability and more importantly their local reach to far flung provinces.

    The only company that has the potential to bring them down is Globe. Unfortunately for us, Globe has become an a$$hole more than PLDT. Just imagine, they got banned in our company!

    Poor pinoy… tiis na lang po tayo. Else, magtayo tayo ng sarili nating Telco.

  42. Miklos says:

    Actually Globe is a part of the consortium of companies in SEA that have already put in place the worlds largest undersea cable in terms of capacity.

    17 Terabits

    It is scheduled to go operational in Q2 2012 and will connect Philippines to Japan, Taiwan, Korea, Singapore and Hong Kong with more capacity than all other undersea cables going into Philippines presently, COMBINED.

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