Bulk Internet – The Three Main Advantages
5/9/2011 – Bulk internet agreements are contract arrangements were specialist ISPs deliver internet connectivity to a private group of individuals or businesses on a large scale.
Known as tier-3 providers, these specialist service companies commit to a bulk purchase of internet connectivity from a tier-2 provider (owners of technology infrastructure – otherwise known as the IP backbone) and deliver it to a property. The tier-3 provider then manages the delivery, billing and maintenance of that internet service to the groups or individuals.
It’s an internet service delivery method that has become very popular amongst home owners at MDU properties (multi-dwelling units). An MDU is typically a high-rise housing unit or garden-style condominium. Which lots of serviceable people within a confined area, bulk internet providers can implement a service that benefits both parties. If you own a condo or unit in a high rise or multi-dwelling unit community, there are three main advantages gained from agreeing a bulk internet deal.
1) The Home Owner Saves Money
When a tier-3 ISP provider commits to a bulk internet backbone purchase from a tier-1 or tier-2 provider, they are charged a set monthly price. What the tier-3 provider does then is connect up every unit in the property for use of the internet and charges each unit for access. The number of units that there are in the property then determines the subscription price level set by the service provider.
This works out to be substantially cheaper than if each unit were to sign their own individual agreements with large suppliers because of the economies of scale involved. The benefit is a more cost effective service.
2) The Home Owner Gets Faster Data Speeds
Unlike the regular residential model of internet delivery, an MDU environment is much better for delivering faster download and upload speeds to each home or unit. Due to the densely populated layout of an MDU property, more effective cabling and suitable hardware can be used in the network build which guarantees better connectivity. The higher upfront capital investment needed to install better equipment is justifiable because the subscription numbers exist to help pay it back. The advanced equipment would be needed at each individual home and the cost of doing that is too much.
However, when you have multiple units located close together in a condominium arrangement these units can share the network hardware and this means the cost of building the system is shared across multiple subscribers, instead of just one. This now makes building the system viable and the consumer benefits from a next-generation internet service not possible under a residential model. The result is much faster download and upload speeds – up to 1Gbps.
3) The Home Owner Gets Better Customer Service
The problem with large commerical internet service providers is that the have so many customers to serve, they evidentially fall down on customer service. As an individual subscriber, you are just one of many and thus ticket systems and delayed service call outs are inevitable. With a bulk internet service, however, the subscriber ultimately gets to benefit from a more dedicated service response team. The bulk internet arrangement effectively means all subscribers exist within a designated community and that makes monitoring and management, on the provider’s side, a lot easier. The network can be managed for faults or issues as they arise which means problems get solved a lot faster.
Many bulk service providers compete on providing the best possible customer experience which means they try harder to gain goodwill and spread word of mouth. This can only ever mean good things for the customer.
