As a taste:
Bandwidth isn’t free, but it’s darn cheap. A moderately sized carrier pays less than $1/month/customer http://bit.ly/N3kVKS. Google pays much less, while small and rural carriers sometimes pay much more. Bandwidth use goes up only modestly with higher speeds; the industry rule of thumb is about 1/3rd more usage if you give the customer higher speeds. A Netflix movie will come in at 2-4 megabits whether you have 12 megabit service or a gigabit. You don’t get more email because your connection is faster.That's actually very interesting. What it means is that Google offering every customer a gig of connectivity does NOT result in their using 100 times as much data as the average american user. Faster speeds don't mean linearly faster costs. Not even nearly. Which is something we here in Lafayette should think about.
2 comments:
Makes me think why then we need to pay for a higher bandwidth? If this is the existing cost, why can't we all exceed the present bandwidth for a faster www.perth-web-design.com.au? It's definitely interesting.
The difference between "stock" and "flow" is not well understood, nor is marginal cost for a horizontally layered approach that not only scales rapidly obsoleting supply across constantly growing and shifting demand; both of which can be diverging or converging. Therefore the industry defaults to "average" costs and prices accordingly, instead of having price reflect marginal cost arrived at a priori.
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