Subscribe to Tech News

Article Archive: Internet Resources

Shopping for Bandwidth in a Buyer's Market

March, 2006
By Arthur Vincie, Tech News Staff Writer

Bandwidth costs continue to fall throughout the five boroughs but many organizations continue to pay significant rates due to automatic contract renewals. Tech News takes a close look at questions nonprofit organizations should consider when shopping for bandwidth.

Determine Your Need
Does your agency have any special bandwidth needs?
  • Download Speed: If an agency is remotely hosting a database through an application service provider it may need to consider increasing download speed while limiting upload speed for security and cost reasons.


  • Upload Speed: When connecting remote sites, hosting applications, or operating a Virtual Private Network an agency's upload speed should be increased since this is how data will travel from internal server(s) to remote users.


    • For many nonprofits, business DSL and Cable Modem lines provide a low-cost alternative to traditional T-1 data lines. *Most locations in New York City can quickly receive a menu of bandwidth options from multiple carriers and resellers. *(Center for an Urban Future: PDF report on communities with limited bandwidth. New York's Broadband Gap)

    DSL and Cable Modem download speeds can range as high as 7 or 8Mbps respectively, if needed. Currently, in most parts of New York City, a one-year agreement for DSL service with 3Mbps download and 768k upload bundled with 5 static IP's costs between $60 and $100 per month.

    In areas where DSL is not readily available, Cable providers have offerings, yet, Static IP's are often limited and more expensive. Point-to-Point dedicated T-1 line(s) at 1.5 x1.5Mbps in many cases are either A) utilized to connect two facilities with a dedicated connection or provide high level (99.99% uptime) or B) for organizations hosting web based applications or where downtime is unacceptable.

    T-1 line costs vary widely based on location and competition. A year ago many nonprofits were excited that a $500 price point was being reached in many areas. In 2006, $325 to $375 per month is commonplace throughout the Bronx, Brooklyn, and Manhattan either directly from a provider or through a reseller.

    One current downside to many business DSL and Cable service providers is that, should the connection go down over the weekend, providers' policies usually dictate that they will not troubleshoot the line unless the customer is onsite to examine the router and provide support from the service location. Although possibly paying a small premium to use a reseller, this provides an agency two avenues to call for tech-support.   With DSL bandwidth costs low, nonprofits often consider adding an additional line as an affordable backup.  

    How many static IP's are required?
    Static IP(s) are required to direct e-mail and web traffic to a specific location. If the organization's server(s) are internally hosting e-mail, website, or an online database, a Domain Name Service (DNS) record is required to point web-traffic to the firewall for translation. For instance, 'mail.youremailserver.org' has a public address behind it, such as '12.345.67.89'.

    Remote login tools like Windows desktop terminal services and VPN's also use Static IP's and could add to your calculation. In the past, many business class offerings came bundled with 13 to 16 Static IP's which were more than enough for the required tasks at the location, often leaving most unused. By lowering the number of Static IP's that come bundled with your service you can, in turn, lower the cost of the monthly service.

    Review Service Contracts
    If your agency has not moved for several years it is highly likely that your Internet Service Provider (ISP) agreement has expired and that you are on a month-to-month basis.    		   When using a T-1 Line for voice, an organization can replace 24 POTS (Plain Old Telephone Service) lines.  

    Nonprofits should regularly review ISP contracts and have comparable quotes available a couple of months prior to contract expiration because if your community based organization is paying a premium for bandwidth, you will not get a call from your ISP offering to lower your monthly cost. The same can be said for web hosting and other commodity services in which prices have fallen in recent years despite industry consolidation.

    Constantly Changing Marketplace
    Check prices from time to time since the marketplace is constantly changing. Although many pockets of New York continue to lack essential bandwidth, communities like Bedford Stuyvesant in Brooklyn, which had limited service offerings a year ago, can now find T-1 service at prices that resemble midtown Manhattan fees. ($350/month)

    Hidden Costs

    Installation Fees:
    Installation charges could be waived or vary between providers. If installation charges for new service seem high but the monthly recurring charges seem reasonable, a suggested negotiating tactic would be to offer to sign for a longer term.

    Length Of Contract Term:
    Many providers offer 1, 2 and 3 year terms. If little price difference exists, it is generally advisable to choose a shorter term since the trend continues to be lower prices.

    Equipment:
    Even when not changing service plans/providers, it is often a good idea to review your onsite equipment. In many cases, any equipment provided/installed with your original ISP service order, such as the router, or firewall may also be nearing obsolescence and need to be updated.

    Reconfiguring Your Network:
    Remember - anytime your Static IP's change you will need to configure your Firewall to reflect the new public address settings and repoint your external DNS to your new IP's.

    Sample sites that let you check your current upload/download bandwidth speed:
    CNET Bandwidth Test
    Windows User Group - Java Bandwidth Test
    		 

    Bandwidth
    Bandwidth is the amount of data that can be transferred over the network in a fixed amount of time.

    Static IP(s)
    A Static IP address is an IP address whose numbers represent a permanent address on the Web.

    Dynamic IP
    An address that is assigned to a computer every time it connects to the Internet. Unlike a static IP address that will be the same every time the user logs on, a dynamic IP address is different every time.

    Network Address Translation (NAT)
    NAT is primarily a security measure that translates a public IP address into private IP addresses that are used within an organization's network. Using a NAT device on the edge of a network protects the individual workstations and servers from malicious hacking. NAT also conserves on the number of global IP addresses that a company needs.

    Domain Name Service (DNS)
    The Domain Name Service is one of the core Internet protocols and mechanisms. DNS translates readable names into a binary IP address. This is how data packets move around the Internet. For instance, mail.youremailserver.org has a public address behind it like 12.345.67.89

    T-1 Line
    A dedicated point-to-point, high capacity digital service capable of transmitting data at speeds up to 1.544 Mbps. Offers 24 channels, each at 64 Kbps, allowing carriers to offer Fractional T1 - an arbitrary number of 64 Kbps channels at a commensurate cost.

    T-3 Line
    A specification for a transmission line, the equivalent of 28 T1 lines. T3 lines run at 44.736 Mbps. In common usage, the term "T3" is used interchangeably with "DS3."

    DSL
    A method for moving data over regular phone lines. A DSL circuit is much faster than a regular phone connection, and the wires coming into the subscriber's premises are the same (copper) wires used for regular phone service.

    Cable
    Since Coaxial cable used by cable TV provides much greater bandwidth than telephone lines, a cable modem can be used to achieve extremely fast access to the Internet.

    Editors' Note:
    Tech News does not endorse any particular resource listed in this article.