-----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<