eli5: Where do Telcos and ISPs get the data bundles that they sell to us?

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And also the call packages too?

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4 Answers

Anonymous 0 Comments

The ISPs build the infrastructure. That is the fibre optics, copper wire, network switches, etc.

That infrastructure has a maximum bandwidth, that is to say, how much data it can handle going through the network. It’s not a finite amount of Gigabytes, it’s how many per second the network can handle. That capacity is the same at 3 am and at 5 pm. That is why data caps are basically useless, they do nothing to reduce bandwidth usage. When kids get home from school and play Fortnite and watch Netflix, it’ll use a lot of bandwidth no matter the data caps. In an ideal world, ISPs would not oversell capacity (that causes speeds to drop significantly at peak hours), build more infrastructure as needed, and price the whole thing fairly. In truth, the US and Canada suffer from a monopoly problem with ISPs where they let infrastructure deteriorate, don’t build out their networks (that would lower their profits), oversell capacity, and put in data caps for no reason other than to charge more money.

In turn, the ISP’s network is connected to other networks that don’t sell bandwidth to consumers, those are called tier 3, tier 2 and tier 1 providers depending on who they connect to.

What ISPs sell you is access to their network at a given max speed that in theory won’t exceed the capacity of the network with the other users on it. In turn, their network gets you access to the content on the other tiers of providers which gets you access to Netflic, reddit, Tik Tok, etc.

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