So I was just renewing a contract with a VPN provider, and paid out for a couple years it works out to somewhere under $2/month.

ISPs around me can run from about $50-$150/month

If I’m putting the major bulk of my traffic over a tunnel that could eat up a sizable chunk of a given connection point for the provider that I’m sure costs more than $2/month to maintain. I would have to assume it would take the combined subscriptions of several users to pay for a given node.

So how does that work as a business model? Unless these VPN providers are getting a steal on their connections it’s hard to envision how they can manage to pay their costs without these nodes being absolutely bottlenecked when a few people start streaming some shows.

  • Kairos@lemmy.today
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    1 day ago

    ISPs only cost like $10 a month to run.

    VPN providers have to manage less hardware

    • finalarbiter@lemmy.dbzer0.com
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      1 day ago

      How the hell does all the physical infrastructure an ISP maintains cost that little?

      That doesn’t sound like it’s even in the ballpark, given that even the server they might host their website and payment portal on would likely cost more than that in electricity use.

      • VitoRobles@lemmy.today
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        20 hours ago

        So many were getting subsidies.

        The one in my city demanded that the city pay for the infrastructure setup for city wifi, as promise they’ll provide it for us. Then they charged for it.

      • Kairos@lemmy.today
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        1 day ago

        It depends on the service level. Gigabit is something like $30 minimum just due to the fiberoptic hardware and bandwidth egress.