 espaethDigital PlumberPremium,MVM
join:2001-04-21
Minneapolis, MN
kudos:2
 ·Clear Wireless
| reply to KrK
Re: Wow said by KrK:The pricing model should shift to be based on equipment and network costs (Building, upgrading, maintaining) and then the bandwidth that they "Create" should be pretty close to zero expense. Bandwidth isn't priced like physical goods, it's priced like rent. Carriers have routers with interfaces limited to # mbps, and a certain amount of capacity to connect that router back into the rest of the network. When you consume resources on that router you're taking over a chunk of that capacity. Just like when you rent an apartment -- you pay a certain amount for them to reserve the space for you, whether you are in the building at the time or not.
The pricing is based on what percentage of the total infrastructure you are consuming. That's why it's cheaper at the head-end; consuming 5mbps out of 80,000mbps available in a routing hub isn't as big of a deal as consuming 5mbps out of a 38mbps downstream channel. The cost of bandwidth is governed by the economic rules of supply and demand. |
