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PToN
Premium
join:2001-10-04
Houston, TX
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:

quote:
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.




Karl Bode
News Guy
join:2000-03-02
kudos:42

1 edit

1 recommendation

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.