.... a T1 (1.5Mbps) costs around $300/month.

A dedicated server with a T1 connected leased for about $100/month....
eg. http://www.rackforce.com/build.php?orderType=viper

Then, how can the provider profit from it? They are losing $200 each month....!


(I am still learning....)

Part is overselling, another part is they probably buy larger connections (OCs, giges) which end up costing less per Mbps.

Buy in bulk, save money per unit. I doubt they're losing money.

A 1.5mbps connections doesn't actually mean its connected to a T1..

Whe you commit to larger amounts of bandwidth you can get better and better deals per mbit...

Another part is overselling.. With servers you can oversell your lines to an extent hoping that the client won't actually use their alloted bandwidth... If there is to much overselling things like over saturation can happen.. But if done right its a safe practice that saves the customer and company both money...

That's not a T1 to yourself ... it's shared I think with 3 or 4 other people.

They have over a GigE I think so I'm sure they can afford that.

I don't see anything on their web site that says T1.

The "T" system was developed by AT&T Bell Labs back in the 1950's. It is only in use today by local telcos to provide voice and data services over their antiquated copper networks.

No one in their right mind is going to use the T system in a data center. It is expensive, doesn't scale well, and is problematic. Ethernet is dirt cheap, reliable, and easy.

Perhaps you got confused because of all the "Tier 1" B.S. that is on that provider's site? I especially liked the network map that they stole off of the old UUnet/WCOM site.

I still don't understand why providers find it necessary to lie about their connectivity considering how easy it is to discover the truth.

Plus, a T1 is like $200+/Mbps. If you get 100 Mbps from, say, Cogent, you're talking $30/Mbps. At that rate, a T1 would be $45.

Prices are extremely discounted when you buy in bulk. And as others have said, there's usually a good deal of overselling going on, too.

What dragoon said.

People these days seem to use the T- system as a measurement of bandwidth - even when most it will be ethernet services.

Funny when you see "l33t kiddys" saying "rRoRLalmam0! your t3 IS rubbish my oc-48 wil pwn you rodlfmafoalroflroflrolrorlrorl"

Ethernet is generally used to deliver to the end user - with most modern datacenters being built on the stuff - longhaul external links are usually other formats like OC/STM.

...back to the original question...
If you are buying a t1 - it is usually to be delivered to premises - which involves more cost - so even though its only 1.5mbit which may costs only $100 in a datacenter - they have to pay for the route to the premises etc..

whats the diffrence between Yipes and Cogent? and which one is better:)

There are about a million differences - just like the diff between a ferrari and lamborghini - however in this case its more like a robin reliant and mini metro (2 very crap cars)

Which one is better? Depends - im sure each are better than others for certain routes - i think much more people use cogent.

Why is Yipes often considered one of the worst providers? I like yipes, I like yipes alot. Cogent I do not like :(

probably cos routing from you to yipes is good - and you to cogent is bad.