Re:Unlimited bandwidth is cheap for Yahoo to deliv (Score 1)

Indeed, offering unlimited bandwidth puts the provider in a position similar to that of an insurer, with a high bandwidth user equivalent to a customer who causes insurance losses. Thus, for such a scheme to work, they need to have low loss coverage costs and broad risk distribution. As has been pointed out above, Yahoo can probably achieve the former; they are also in a much better position for the latter -- they have marketing channels through which they can reach a lot of average customers. Compare this to a small provider whose unlimited hosting package might end up attracting mainly users who got kicked out of their last "unlimited" plan.