Verizon Pushes Toward a 100Gbps Core > Hey Comcast!???!

reply to DataRiker

Re: Hey Comcast!???!

reply to espaeth
How can you have a 1500-10,000% margin on bandwidth and end up with a negative profit margin?

Spend more money than you earn? Bad management / and or investments? Have you been paying attention to the US news lately.

For being a self proclaimed rich investment type, you don't know much about business.

This says nothing about the margins on Bandwidth. Nice try though. You won't find it easily, since its a nasty little secret. I'm not worried because you won't find a credible source that says otherwise.

If I'm not mistaken Cogent's modest take was stated at 1500% on this site before, and they are the bottom of the barrel when it comes to cost, so I imagine that 10,000% would not be out of line for Level 3 comm.

By far the highest expense (besides the initial fiber) is exchanges brokered with other backbone carriers, and these were kept quiet until the age of Cogent, who undercut other providers, something like 1/5th the price. I guess your probably right and cogent just found some "cheap photons"...

As for making up numbers, these are what I have taken just from my limited reading on the subject, and there is not much. I am not an expert by any means, but this is what I have seen quoted before.

Having said that, I know there is only an indirect link between the profit margin of bandwidth on fiber lines a companies gross profit. Level 3 is subject to Wall St. and that means at this point you basically means a companies books mean N O T H I N G. High profits one day, and 70 billion dollars in dept the next.

reply to DataRiker