[79851] in North American Network Operators' Group
Re: cost of doing business (was:Re: OpenTransit (france telecom)
daemon@ATHENA.MIT.EDU (Mike Leber)
Sun Apr 17 03:18:57 2005
Date: Sun, 17 Apr 2005 00:15:38 -0700 (PDT)
From: Mike Leber <mleber@he.net>
To: jmalcolm@uraeus.com
Cc: nanog@nanog.org
In-Reply-To: <16993.21031.326882.979307@shoggoth.uraeus.com>
Errors-To: owner-nanog@merit.edu
On Sat, 16 Apr 2005 jmalcolm@uraeus.com wrote:
> 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.
Hmmmm, router and optical gear capabilities are growing faster than the
market. Can you say "permanent state of affairs".
moores law > market growth
A better (healthier? more sane?) metric is revenue per customer.
Mike.
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