RE: cost of doing business (was:Re: OpenTransit (france telecom) depeers cogent)

["Hannigan, Martin" <hannigan () verisign com>]

> -----Original Message-----
> From: owner-nanog () merit edu [mailto:owner-nanog () merit edu]On Behalf Of
> jmalcolm () uraeus com
> Sent: Saturday, April 16, 2005 1:58 PM
> To: nanog () nanog org
> Subject: cost of doing business (was:Re: OpenTransit (france telecom)
> depeers cogent)
>
>
>
> 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.

As long as the hardware can keep up, the amount of glass in spectrum
in the ground should make this an impossibility for the near term,
10 years plus.

-M<