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[ NNSquad ] Can money be made from bits?

I thought NNSquad readers might be interested in this analysis that
questions the assumption that "money can't be made from bits", also
known as the "scissor effect" where traffic growth exceeds profitability
in a network.

http://tinyurl.com/2bl4569 (Ericsson.com)

Personally I had more-or-less subscribed to the idea that there was a
dilemma in how to maintain profitability at very high traffic levels.
What the above analysis seems to show is that there is actually a
kind-of long tail effect where traffic growth begins to decrease even
though the number of subscribers is increasing - after the "early
adopter" phase. In my mind I wonder if this places even more importance
on network neutrality - long tail subscribers may have less data volume
needs, but their interests are likely to become more specialised and
network neutrality is needed to ensure that those interests are not
blocked by the network.

In the interests of full disclosure: Ericsson is my employer.


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