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Subject:	Re: UKNM: RE: UKNM Digest V1 #115
From:	Nabil Shabka
Date:	Tue, 15 Dec 1998 20:15:59 GMT

There are actually a combo of reasons as to why the US is cheaper.

Bandwidth - US players do not pay to connect to the rest of the world.
We have to pay to get to them. This is a hangover from a couple of
years ago when most decent sites were over there and Americans were/are
concerned about Americans. This is in the process of change and will
take time.

Scale - The US does have scale but more importantly, we put up with
ridiculously high prices here. As we put up with them, we have to
charge them, or else we don't eat. This is a serious problem that needs
to be addresses or we won't have any business here, we'll all move to
where we can be competitive. A CD is a CD is a CD, who cares where it's
coming from or going to (barring shipping charges of course).

Distance - An idea that's used to create business. Yes it can be a tad
faster to be located in the same country as the server but, or less it's
a seriously large site, it doesn't make that much difference.
Especially if you have a good service provider. A slow site next door
will be slower than a quick site in the US.

Nabil

James Bruce wrote:
>
> Wrong! the reason that US hosting costs are lower in than the UK's is that
> the competitive picture is vastly different. Penetration of over 30% and a
> multitude of mature players keeps the costs low, whereas the UK's relatively
> modest takeup allows upstream providers to bloat their margins, this then
> feeds downstream.
>
> Don't be fooled by all this bandwidth junk!!!
>
> James Bruce
> Managing Director

> WebWeaver Media Construction Ltd.
> Tel: 0171 379 5950
> Fax: 0171 240 9096

[Sam says: additional messages snipped for brevity.]
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