[79842] in North American Network Operators' Group
cost of doing business (was:Re: OpenTransit (france telecom) depeers
daemon@ATHENA.MIT.EDU (jmalcolm@uraeus.com)
Sat Apr 16 13:58:25 2005
Date: Sat, 16 Apr 2005 17:57:59 +0000
From: jmalcolm@uraeus.com
To: nanog@nanog.org
In-Reply-To: <Pine.LNX.4.62.0504161820530.490@uplift.swm.pp.se>
Errors-To: owner-nanog@merit.edu
Mikael Abrahamsson writes:
>So what will people do? Stop selling when their networks are full? Ignore
>the economics and let other business carry the cost of bulk internet? Go
>for cheaper platforms? Go bankrupt (if no other business can carry the
>cost) ?
This problem will be fixed when the excess capacity built in the
latter years of the boom is gone. That's not to say that the
adjustment won't be painful - I'm sure a few more provider failures
are in the offing - but obviously if the marginal price for bandwith
doesn't pay for the capital costs of expansion, either eventually
bandwidth will be more expensive, or the equipment will be cheaper.
Joe
