North American Network Operators Group

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cost of doing business (was:Re: OpenTransit (france telecom) depeerscogent)

  • From: jmalcolm
  • Date: Sat Apr 16 13:59:02 2005

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.