Re-selling T1's

Victor A. ( (no email) )
Thu, 23 Apr 1998 14:30:57 -0400

Hi Everybody,

I have a quick question for you all since I don't seem to understand
completely how to go about it, I've looked different ISP sites and they all
seem to display similar information which makes my confusion even greater.
This is the scenario:

We currently have 3 customers requesting a T1 connection to the Internet.
I've seen in the different sites I've visited that IPS offer T1 connections
for relatively low prices (compared to the prices one can get from MCI,
Sprint, etc.) but they themselves have only T1 connection or in some cases
2 T1's, my confusion arises from the fact that the prices given in the web
sites are relatively cheap compared to those given by the Big companies
what I don't get is how can I offer a T1 connection to a single customer
for let's say $1,200.00/month, what if he uses the full T1, how can I
re-sell my own T1 3 times!! to 3 different customers..? This question is
really giving me a hard time. Now Let me just ask you this, does the ISP
limits somehow the bandwith that is reselling to it's customers even when
they sell them a full T1?

Can I resell 'several' T1's off my 'single' T1 and not running the risk of
running out of Bandwith? If I charge a customer $1200 for it and he makes
use of the whole T1 and I am paying twice as much for it, wouldn't that
make me go down the drain in no time?

I'm sorry if this sound stupid but I really don't know the answer and how
to go about this situation..... maybe you all could help me clear my blurry
and confused mind

Best Regards,