reply to prairiesky
Re: Where does the profitable come from?
said by prairiesky:Bandwidth is actually pretty cheap. Here in NYC, I can, as just an individual, get 1Gig "transit" for $1,200 a month plus $100,000 installation. If I were to connect my neighbors to my connection and charge them $70 per month, I would only have to sign up 17 of them to pay my "transit". Google or any large ISP for that matter wouldn't be paying "transit", due to peering. Their only bandwdth expense would be the cost of laying the fiber and related equipment.
I fail to see how they can offer gig service for $70 and make money off the service.... I understand there are peering agreements, but with each customer with a gig connection, the bandwidth requirements will be insane.