The difference between consumer dsl and CIR

I need to explain this in the office on the topic of switching providers.

I was posed this question which when i sat down to answer, baffled me. I have all this time believed, like an unwritten rule, that CIR's are better than consumer connections, but to what measure?

Why does a 1MB CIR cost PKR 20k-50k while a 1MB consumer connection costs PKR ~700.

If its because of a shared connection, then PTCL's 1MB CIR over fibre is priced at arnd $600/month

Contention ratio: 1:4

Even if i take the contention ratio up to 8 the price comes down to 6.6k on an average

Im going around in circles, could someone explain this?

Its always better to ask those are actually coining the term 'CIR'... let THEM explain themselves cause they are doing the business not you.

Personally I have never understood the logic behind CIR... a 1MB CIR will at most give you 1MB it can't and should not go higher in any case else it wouldn't be 1 MB connection right ? Vs. the 1MB home connection which you get 0.8MB depending on line conditions and some other factors. which we can say is 20% less then a CIR

But when you look it from price prospective, the picture gets real ugly you know. as per what you mentioned, you end up paying 20 times more to get that 20%.

Some would factor in QoS in favor of CIR but lets be real this is Pakistan and !@#$ ISPs are as crap as everything else in this country. Besides, in offices, the internet is mostly used for recreational purposes you know, such as youtubing, facebook etc ALONG with the 'official' work.

So I don't see any real justification for CIR except if a company thinks it should follow the unwritten 'rule' or 'standard' and has deep pockets too or provisional staff of the company is not competent enough to research before opting then CIR is definitely for them :)

It is usually about guaranteed service availability and usually a commitment to restore link in a pre-specified time in case some issue crops up.

CIR is the abbreviation of ''Company Is Robber'', that's what I can understand in the case of PTCL.

To add to what Asad said earlier, CIR guarantees a certain transfer rate along with some excess as well depending on certain factors. Connectivity is usually end to end fibre, including last mile - in larger organizations, you are also able to segment and prioritize bandwidth over individual nodes depending on needs etc, so there is added flexibility with what you can do. it also opens other doors for you in terms of security, MPLS clouds; again, depending on the need/scope of company need. I'm no expert on this, but I'm sure some networking chaps can talk about this in greater detail. If there is extended VoIP usage and/or significant data transfer locally or internationally (again at scale), then there is no question of the need for CIR. Also important is that your upload speeds are significantly higher as well versus typical residential dsl.

Also, if you approach PSEB, you can actually have them get you a price break on CIR depending on how you pitch your need etc. If your office is located in a technology park, you will get a further price break...