The Cost of Bandwidth: Yukon Versus the World (update)

A very interesting analysis was pointed out to me by “a group of very concerned [Northwestel] customers” that calculates the cost of internet bandwidth in Canada versus the world. The post, “The Cost of Bandwidth: Canada versus the World” was written by Chris Stavropoulos.

Here’s the chart that illustrates his findings:

 

Consumer Pricing of Internet Bandwidth per GB by Chris Stavropoulos

I got in touch with Mr. Stavropoulos and discussed his calculations, which he was generous enough to share with me. So, of course, I wondered: what if Northwestel were on this chart?

As you might expect, it’s ugly:

Consumer Pricing of Internet Bandwidth per GB

Consumer Pricing of Internet Bandwidth per GB

 

Even as, in Mr. Stavropoulos’ chart, Bell’s prices tower over the world’s by a factor of 90, Northwestel’s tower over Bell’s by another factor of 10.

Of course, especially in terms of the Yukon marketplace, this is an analysis based wholly in theory: it’s unlikely Northwestel will ever grant its subjects such a generous internet plan as to include 300 GB of data every month; and it’s even less likely that anyone would ever use the full 7910 GB of data so as to test the trust cost of a month’s maximum useage.

But, even so, it’s worth pointing out that at this level of cost Yukoners receive less service than anywhere else in the world for a far greater cost. And not just by a bit, but by a significant margin. (In fact, to learn exactly how much Northwestel marks up data, read this: “How Much Does Northwestel Markup Data?“)

This is not the market at work. It’s just lazy marketing.

Have a great weekend!

9 thoughts on “The Cost of Bandwidth: Yukon Versus the World (update)

  1. in the interest of fairness, how about adding columns to your graph for each of the tiers (5, 20, 60, 75 gb)? i’m sure prices would be (ahem…somewhat…) less outrageous if the customer stays under the limit, and i think it’d be interesting to see graphed out.

    • I actually covered that angle last October in the column, “Northwestel Charges Heavy Internet Users a 7600% Premium“. But I get your point: what does reality look like?

      In a sense, though, this is reality, because the question raised by Mr. Stavropoulos is essentially: what would the associated costs look like if Canadian ISPs offered services that actually compared to services offered by ISPs in Japan, the UK, and the US?

      At the heart of his study is the fact that Canada, in general, and the Yukon, particularly, lags badly behind pretty much every other developed nation in terms of internet services offered. It wouldn’t be so bad if the service sucked but still cost the same as in other countries. But his analysis points out: the service sucks, and it costs a hell of a lot more. That’s a painful take away for Yukoners.

  2. Hope you don’t mind, going to add a link wherever I can showing this. I have written so many letters to our M.P.’s asking why we are being gouged like this, and of course there hasn’t been one reply Back. Northwestel is the highest profit making subsiduary that Bell Canada has, and this is why. Thanx for the great post.
    Randy

  3. Andrew, great post. Unfortunately I’m reading this over a Northwestel connection and it’s costing me a fortune! Next time if you could make your blog available in print, it would probably save me some money 🙂

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