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[ NNSquad ] Re: Competition


At 12:47 AM 3/1/2008, Benson Schliesser wrote:
 
>If you look at prices in the carrier-wholesale market for bandwidth
>you'll see that they've been falling for quite some time. 

Actually, Benson, this is not so. Due to consolidation among the
wholesale fiber backbone providers, bandwidth at wholesale has
actually gone up. We're being quoted higher prices for a DS-3 than
we were in 2005. And with ILECs -- the trolls at the bridge --
jacking up the cost of the leased lines used for backhaul, ISPs
are paying more for less... just as sites such as YouTube are
leading users to demand much more bandwidth from us.

That's why we absolutely must conserve our bandwidth. We can't
waste it; can't allow it to be hogged; can't allow companies like
Vuze to siphon it off via P2P without paying for it. Without
P2P mitigation, competitive ISPs are dead.

>So... Are network services in the US a natural monopoly? 

Reed Hundt has made statements to that effect; see

http://telephonyonline.com/broadband/news/reed-hundt-auction-0228/

We obviously do not agree with him, of course, or we would not be
in this business.

--Brett Glass