|reply to FFH5 |
Re: Google Uses 21 Times More Bandwidth than it Pays For
I guess you didnt read one of the user's comment:
Economy of scale
Submitted by Paul Clieu on Mon, 2009-01-12 07:40.
Your estimates suggest that Google is paying 5% of the average cost for bandwidth. Considering their volume, this is not unreasonable at all.
It is a well accepted rule of thumb that as you double unit volume, unit costs tend to drop by 25%.
Assume the amount of bandwidth used by Google is about 10**8 (100 million) times that of a ordinary individual internet consumer. Log2(100 million) is 26.58. 0.75**26.58 is 0.000478. Assume the average consumer pays $600 per year, then when you do the maths, it works out that Google should be paying about $29M not the $318M allegedly paid. Your estimates should factor in the rather large economy of scale that Google should enjoy.
Your point is valid, but keep in mind the report's author, Scott Cleland, is a paid lobbyist for AT&T and Verizon. Arguing science with guys like that is like trying to box with a river. Their interest isn't in the facts. Should you deconstruct one absurd point, another will simply pop up to take its place.