Networking gear overpriced?

NZXT30 · 5 May 2020 at 15:15

How come anything related to networking seems way overpriced? Routers, mesh, access points etc. They are made of cheap materials and they don't contain any expensive silicon.

ISPs also hand out networking gear like candy which enforces my belief that normal customers are getting ripped off. Is there some price fixing going on or maybe they have to cover the cost of licenses? Please enlighten me.

Janesy B · 5 May 2020 at 15:17

Research and development, software, support and so on.

ISPs don't hand out networking equipment like candy, they build the equipment needed into the price of the service.

Caged · 5 May 2020 at 16:46

My first ADSL router was an Asus one and it cost £180. I don't think everything relating to networking is overpriced.

NZXT30 · 5 May 2020 at 17:57

Janesy B said:
Research and development, software, support and so on.

ISPs don't hand out networking equipment like candy, they build the equipment needed into the price of the service.

In the past couple of years my ISP has provided me with 3 different routers and a couple of mesh extensions. If I bought these myself even if I picked average looking ones it would be the total cost of my broadband connection for 3 years.

Semple · 5 May 2020 at 18:02

ISP networking gear tends to be very basic. It's mass produced hardware that generally has the absolute minimum it needs to function.

With most networking gear it's a case of you get what you pay for. At the cheaper end of the scale, you're probably limited with functionality etc - which for most people isn't an issue, but if you're looking at setting up vLANs or applying some sort of QOS, then you need better hardware. It's also a case of how well it scales with devices, if you've got 20 devices plugged into a switch, the last thing you need if they're all transferring data is a network-wide slowdown.

Vince · 5 May 2020 at 18:14

Semple said:
ISP networking gear tends to be very basic. It's mass produced hardware that generally has the absolute minimum it needs to function.

With most networking gear it's a case of you get what you pay for. At the cheaper end of the scale, you're probably limited with functionality etc - which for most people isn't an issue, but if you're looking at setting up vLANs or applying some sort of QOS, then you need better hardware. It's also a case of how well it scales with devices, if you've got 20 devices plugged into a switch, the last thing you need if they're all transferring data is a network-wide slowdown.

This.. you pay for what you get. Its for this reason the crap that comes from the isp goes in the bin and decent hardware is deployed in its place. Your second point is also the reason that my machine sits behind a fortigate.

Janesy B · 5 May 2020 at 19:50

NZXT30 said:
In the past couple of years my ISP has provided me with 3 different routers and a couple of mesh extensions. If I bought these myself even if I picked average looking ones it would be the total cost of my broadband connection for 3 years.

The routers will be cheap enough, do you actually own these or do you have to send them back at the end of the contact?

WJA96 · 8 May 2020 at 09:39

NZXT30 said:
In the past couple of years my ISP has provided me with 3 different routers and a couple of mesh extensions. If I bought these myself even if I picked average looking ones it would be the total cost of my broadband connection for 3 years.

You’re missing 2 things;

1. The ISP buys tens of thousands of routers. No middle man, just straight to the manufacturer. What costs you £100 will cost them £30.

2. The ISP writes off the cost of that equipment against the value of a 18 or 24 month contract. Once they have installed your line, the cost to service your contract is very low. £30 for a modem/router over 12 months on a £30/month contract? Not so bad for them. The real,question you should be asking isn’t why the hardware is so expensive, it’s why the broadband cost is so high.