Cost Comparison of Modems to Other Services

What follows is a cost comparison of some popular internet services, and their relative speeds. The question being asked here is: are the faster and more costly services actually worth getting?

Note: All prices are current as of 8/1/00

Service Provider Set-up fee Monthly rate Downstream Data Upstream Data Downloading of 1 GB of data, no compression Total Cost
Various Modem Pool U of Pitt N/A $27.50* 22000 - 44000 bps unknown 54.23 - 108.46 hours $81.73 - $135.96
56k Verizon $9.95 $19.95 53000 bps 33600 bps 45.02 hours $74.92
DSL Verizon $99.00 (cost of modem) $39.95 256000 - 640000 bps 90000 bps 3.73 - 9.32 hours $142.68 - $148.27
Cable Modem AT&T@Home no fee $39.95 "2 seconds on @Home as compared to 9 minutes over 28.8 modem" 128000 bps .31 hours $40.26

*This price is based on the $110 per semester Computer Network/Service fee that is charged to a full time student at Pitt.


The calculations do not take actual data throughput into account, but the differences in the calculated times will occur in the same fashion as they do with the theoretical bit rates.

To illustrate the true cost of each of these services, the following values will be used:

  • "worth" of an hour = $1
  • use the service for one month
  • download 1 GB of data each month
  • Total cost = download time * $1 per hour + set-up fee + monthly rate

    According to these calculations, DSL is actually the most costly overall. Of course, that includes the $99.00 for the DSL modem, which one would presumably only pay for once. If Cable Modem speeds are true to their claim, it is by far the best service in terms of cost. However, since AT&T does not provide any definite specifications on the speed, it is difficult to make an informed decision.

    At this point, sticking with the Pitt modem pools is my best choice, especially since I have to pay the network fee anyway :-)


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