More BW, Less Taxes

bmanning at bmanning at
Tue May 29 16:28:40 UTC 2001

> At 03:37 PM 5/29/01 +0000, bmanning at 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) 



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