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Re: More BW, Less Taxes
From: bmanning () vacation karoshi com
Date: Tue, 29 May 2001 16:28:40 +0000 (UCT)



At 03:37 PM 5/29/01 +0000, bmanning () vacation karoshi com wrote:

        Why does BW cost so much?

It might make more sense to ask "Why is bandwidth so cheap (and getting 
cheaper so fast) in the US?" The simple answer is: Moore's law, competition 
(leading to a "fiber glut") and economies of scale.

If you're across an ocean from the US, you have to factor in the cost of 
running underwater cable.


        Actually, this was/is a troll.  BW costs outside the US are high
        because of two things:  ) International tariffs based on voice
        traffic profiles.  )local tariffs from monopoly carriers that
        contribute significant % of a soverigns GDP.
        The first is a legacy holdover that should be revised. The second
        is a tough nut to crack.

        Trans-oceanic capabilities will remain a bottleneck, but they
        are not as problematic as in the previous decade. Witness Tyco
        or any of the other folk that have cable-laying capability. Last
        year they had waiting lines for boats.  Now the boats are idle.
        Too much capacity in water and no-one taking it up. (see first
        point above) 

        YMMV.

--bill


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