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How do VPN providers manage to stay in business? (piefed.socdojo.com)
submitted 11 months ago by to c/asklemmy@lemmy.world
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So I was just renewing a contract with a VPN provider, and paid out for a couple years it works out to somewhere under $2/month.

ISPs around me can run from about $50-$150/month

If I'm putting the major bulk of my traffic over a tunnel that could eat up a sizable chunk of a given connection point for the provider that I'm sure costs more than $2/month to maintain. I would have to assume it would take the combined subscriptions of several users to pay for a given node.

So how does that work as a business model? Unless these VPN providers are getting a steal on their connections it's hard to envision how they can manage to pay their costs without these nodes being absolutely bottlenecked when a few people start streaming some shows.

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[–] 34 points 11 months ago (1 child)

American residential internet prices are a fucking rip

But also. VPNs do not need to worry about the "last mile", I.e. infrastructure to your house, which is most of the cost of your residential service.

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  • [–] [S] 1 point 11 months ago

    That last mile thing would make a lot more sense if the carriers kept enough staff to have appointments not take a week. Add to that the wireless carriers around don't have much price advantage either, but that's mostly a 'fuck you, we can' pricing I figure.

    The joys of living in the corn fields.

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