Studio64
04-18-2002, 04:12 PM
Ok... Please excuse me... I just spent the last 32 hours awake studying for an Economics exam and this topic came to mind.
Disclaimer... Although the tone of this might sound socialist, I am not. I am simply just confused
Where is the true value of bandwidth derived?
(A variation of the Origin of Money by Ludwig Von Mises )
As far as I can tell I cannot find the source of the price of bandwidth. If you look at the real structure of the web you have a interconnected network of computers that share ties between them. Although unlike telephone lines (old switching systems) there never really is a direct line connecting them.
I buy my bandwidth as a web hoster from my webhosting company who buys it from their reseller who buys it from a data network who buys it from a data network?
This product does not have an origin. Cost can be attempted to be derived from the cost of laying the fiber/copper line/cat 5/etc but, eventually that cost is regained through selling bandwidth.
Someone must not buy bandwidth because there seems to be an limitless supply of the quantity of suppliers. I certainly understand that there is a finite amount of bandwidth between computers simply due to technological situations but, as the internet as a whole I can't see where it is all coming from....
-- Edit --
In re-reading my sleepless ramblings I figured out where the cost of bandwidth is derived...I Think
It is the cost of renting the finite space that interconnects to computers. But, as I see it that cost is still highly inflated due to an attempt to re-coup the costs of the intial outlay of capital to construct this network. So the price has only one way to go down. Because as time goes on, that original out-lay is being re-funded then the sale of bandwidth is directly related to the cost of mantaining the equipment to keep that line open which is much much less than current prices.... I think...
-- End Edit --
-- Now Sleep -- (Oh wonderful sleep...)
Disclaimer... Although the tone of this might sound socialist, I am not. I am simply just confused
Where is the true value of bandwidth derived?
(A variation of the Origin of Money by Ludwig Von Mises )
As far as I can tell I cannot find the source of the price of bandwidth. If you look at the real structure of the web you have a interconnected network of computers that share ties between them. Although unlike telephone lines (old switching systems) there never really is a direct line connecting them.
I buy my bandwidth as a web hoster from my webhosting company who buys it from their reseller who buys it from a data network who buys it from a data network?
This product does not have an origin. Cost can be attempted to be derived from the cost of laying the fiber/copper line/cat 5/etc but, eventually that cost is regained through selling bandwidth.
Someone must not buy bandwidth because there seems to be an limitless supply of the quantity of suppliers. I certainly understand that there is a finite amount of bandwidth between computers simply due to technological situations but, as the internet as a whole I can't see where it is all coming from....
-- Edit --
In re-reading my sleepless ramblings I figured out where the cost of bandwidth is derived...I Think
It is the cost of renting the finite space that interconnects to computers. But, as I see it that cost is still highly inflated due to an attempt to re-coup the costs of the intial outlay of capital to construct this network. So the price has only one way to go down. Because as time goes on, that original out-lay is being re-funded then the sale of bandwidth is directly related to the cost of mantaining the equipment to keep that line open which is much much less than current prices.... I think...
-- End Edit --
-- Now Sleep -- (Oh wonderful sleep...)