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North American Network Operators Group Date Prev | Date Next | Date Index | Thread Index | Author Index | Historical Re: cost of doing business (was:Re: OpenTransit (france telecom)depeers cogent)
On Sat, 16 Apr 2005 [email protected] 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. +----------------- H U R R I C A N E - E L E C T R I C -----------------+ | Mike Leber Direct Internet Connections Voice 510 580 4100 | | Hurricane Electric Web Hosting Colocation Fax 510 580 4151 | | [email protected] http://www.he.net | +-----------------------------------------------------------------------+
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