The real bandwidth numbers.

Gordon Mohr gojomo@usa.net
Sun, 27 Jan 2002 13:21:12 -0800


Adam Beberg writes:
> So here's how it boils down (in US dollars):
> 
> $1.75/GB for the bandwidth coming in and out of the cables to the
> backbone companies - the wholesalers, Sprint, MCI, Qwest, etc.
> 
> Now, once you add employees, routers, power, AC, phones, etc etc...
> 
> $12.88/GB.

You're doing this almost exactly backwards; the most important
number for setting prices and determining the potential for
profit at scale is the marginal cost of one additional GB.
That's under $2 and falling.

> I leave for the reader to calculate how many DSL customers you need at
> $40/month running gnutella to make a profit :)
> 
> Enduser per-GB rates are coming.

Put your money where your mouth is. My offers from December 24
(USA) or December 26 (worldwide) still stand. 

At any addresses you choose, and at any timeframe you choose, 
places which currently have flat-rate broadband options will 
continue to have better flat-rate options than metered options.

That's what the customers want, that's what the long-term and
marginal economics demand.

C'mon, you keep repeating the same prediction. If you want
to make some money off your "insight", bet me a big amount
of money. If you want it just to be symbolic, bet $1.

- Gordon