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EASYNEWS.ANNOUNCE

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From: godzilla

Newsgroups: easynews.support,easynews.announce

Subject: Aug 26th — Why we don’t have unlimited accounts (godzilla)

Date: Thu, 26 Aug 2004 21:51:00 GMT

Easynews Official Statement on Unlimited Accounts

We field quite a few inquiries as to why Easynews does not offer an

unlimited account. This statement was prepared to offer a detailed

explanation of our position on unlimited accounts.

We believe unlimited accounts are not economically sustainable, nor

are they fair to the majority of the user base.

Economics:

Years ago, Easynews only offered unlimited accounts. This worked well

when most users were on modems. However, we found that our bandwidth

needs grew linearly given the same user base. In other words, our

outbound bandwidth would continue to grow even if the number of users

remained constant. This was because more and more users were

foregoing their modems for broadband connections.

As it stands now, broadband connections outnumber narrowband

connections in the US:

http://www.nielsen-netratings.com/pr/pr_040818.pdf

And with companies bringing fiber to the home, such as Verizon, the

average user will be able to pull even more bandwidth:

http://newscenter.verizon.com/kit/fiber/

It is now common for a user to pull a sustained 10mbps (about 1

megabyte per second) from us. This equates to around 2500 gigabytes

per month. In fact, some of the higher end users can pull over 40mbps

sustained, or about 10 terabytes per month (about 14,000 compact

disks).

It is not economically sustainable to offer these users unlimited

downloads for a rate as low of $25/month. There are many reasons a

company might choose to lose money on a small percentage of their

users. However, at Easynews, we don’t operate that way.

Fairness:

Our best rate currently is 54 cents per gig (if you use NNTP and

participate in grid.org and take the weekly survey). We believe that

this is a very competitive rate that is fair to all parties.

When we decided to move away from unlimited accounts, 7% of our users

were using over 50% of our resources (bandwidth, CPU, disk I/O, etc).

3% of our users were using over 20% of our resources.

We do not believe that asking the majority of users to subsidize the

downloading of thousands of gigs by a few is fair. You should pay for

what you use, and so should all other users. The money you give us to

provide you service will be used for just that – to provide YOU

service. It will not be used to provide other users service.

To put our money where our mouth is, we will be offering “roll-over”

gigs on October 1st.

If you have any questions, feel free to follow up in easynews.support,

or our web based support forum at http://forum.easynews.com/

— Godzilla

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