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[IP] more on Bandwidth costs in the future




-------- Original Message --------
Subject: Re: [IP] Bandwidth costs in the future
Date: Tue, 07 Mar 2006 17:50:34 -0700
From: Brett Glass <brett@xxxxxxxxxx>
To: dave@xxxxxxxxxx, ip@xxxxxxxxxxxxxx
References: <440E23B7.6020205@xxxxxxxxxx>

At 05:22 PM 3/7/2006, David Farber wrote:

>http://telephonyonline.com/iptv/news/BellSouth_VOD_costs_030706/
>   Todays average residential broadband user consumes about 2 gigbytes of
>   data per month, Kafka estimated, which costs the service provider about
>   $1. As downloading feature films becomes more popular, they might
>   consume an average of 9 gigabytes per month, costing carriers $4.50.

Alas, this is not a good estimate. While a user might average
a certain number of gigabytes a month, he wants his data RIGHT NOW at
the instant at which he is demanding it. The ISP has to pay for the
headroom to handle all of the requests that come in at "prime time."

What's more, the ISP pays by the capacity of the pipe, not by the gigabit.
And non-backbone ISPs have to pay a bunch more for bandwidth -- from $20
to $200 per megabit depending upon the location. (In rural locations, or
ones with monopoly telephone providers with a tight lock on infrastructure,
they may pay even more.) So, the above estimates are low. That 9 GB
customer can cost the ISP $20 per month or more.


--Brett Glass


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