Ahrenl
join:2004-10-26
North Andover, MA | reply to devnuller
Re: Give Me A Break said by devnuller:Greater utilization = more capital to add capacity = more maintenence costs for warentee's of that capital More capital will be needed to add capacity, but I'm talking about the long haul resellers. They'll be earning greater revenue before more capital will be needed, thus providing the capital through retained earnings. Maintenance costs should only materially increase if you expanding the size of the network.
said by devnuller:Significantly greater utilization = lighting more fiber = significantly more capital = major router upgrades = more facility space = more power = more maintenence costs There's nothing new here from your last point. Again, we're not talking about last mile operators here. |
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| said by Ahrenl:More capital will be needed to add capacity, but I'm talking about the long haul resellers. They'll be earning greater revenue before more capital will be needed, thus providing the capital through retained earnings. Maintenance costs should only materially increase if you expanding the size of the network. It is true that more bandwidth=more revenue=reinvest portions into capacity growth for the first mile and middlemen ISPs (who charge based on peek usage).
I think that is the point of a need to charge based on usage tiers (not bill-by-the-byte). If there is a drastic increase in demand, the revenue will follow to address the capital demands. |
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