| When comparing local production prices between different countries it is important to keep local wages in mind. The ISP employees in Kazakhstan are not getting paid US salaries. To do some quick math, let's take the median monthly salaries of both Kazakhstan and USA, 364,000 KZT ($755) and 3,500 USD per month respectively. That means that the $10/month 500Mbps symmetrical fiber is about 1.32% of median monthly wage in Kazakhstan. For the US, 1.32% of 3,500 USD is about $46/month. Looking at the AT&T website, they offer 500Mbps symmetrical fiber for $65/month + taxes. So yes, the US internet is more expensive by about 50%. However one should still ask - well, maybe AT&T provides better service? I don't know whether AT&T is a better provider than your Kazakhstan ISP, but some points to consider are: - Can you have a connection uptime of 6 months without interruptions and it's just business as usual and not an achievement? (In Estonia I have router & connection uptime measured in years. When I lived in the US, my Xfinity connection dropped for a few minutes every week.) - Does the ISP have excellent global peering? Poor peering can result in much higher latencies to international destinations, and also much lower bandwidth. (In Estonia I know all the budget ISPs buy (as opposed to build) their international traffic and oversell it, which means connections across oceans are at quarter of the advertised speeds at peak hours.) - Is the last mile cabling cost eaten by the ISP, or will they demand you to pay for its building? |
Sure, that was implied. All hardware and software used to build networks is imported though, and is bought for 'hard' currency (and a lot of it is needed to build networks in a country with an extreme climate and such low population density).
> Can you have a connection uptime of 6 months without interruptions
I've been using this provider since 2008 (and switched from ADSL to fiber-optics in 2013). It's been pretty great actually, I believe we had two service interruptions in all that time, roughly half-hour each. I don't remember the exact time since the last one happened some years ago.
No idea about 100% stability across many months of use since I don't host anything at home. This sounds like something you'd want if you were getting remotely operated on.
The router keeps the same IP for months, and I've never had the connection break from under me (besides two occasions mentioned above).
> Does the ISP have excellent global peering
Well, it's definitely not going to be as good as what you have in Europe. I mean, look at our geographical location, it's right in the middle of freaking nowhere. I guess it's pretty similar to what they have in NZ, only they are surrounded by water, and we by a thousand miles of steppe.
Last year, I looked at what they paid in Russia to get similar connection speeds. Prices were significantly lower in Moscow and SPb than in Siberia (roughly $5 for 1 Gbit/s versus $5 for 200 Mbit/s IIRC), which makes sense when you think of it. And we're way further down.
Both up and down speeds to US and EU datacenters are stable and close to 100% advertised.
Right now, ping to HN is at 220 ms. Going by the most direct route possible at the speed of light in vacuum, I get 100 ms to that same datacenter (us-west-2). So it's 2.2 times worse than the unreachable ideal. Don't know how much better it could be if we had direct cabling to the US since it's not going to happen for financial reasons.
We have a couple more providers (who seem to have been allowed to the market to make the main one look like less of a monopolist) that are not as popular. They definitely do oversell bandwidth. You'd be lucky to get 10% of what you had paid for, especially on weekends.
> Is the last mile cabling cost eaten by the ISP
You don't pay anything when signing up for the service.
So no, I think US customers are simply getting shafted for their money.