Thursday, November 22, 2007

Rare At Half The Price

A disingenuous report by a company called Nemertes Research is being widely covered by the media, saying, in effect, that we are running out of bandwidth and seeming to ignore the huge investments companies such as Verizon (who have deployed 100Gb connections), AT&T and BT are making in next generation networks.

It reminds me of the regular hosepipe bans we have in the UK, one of the wettest countries in the world, almost every summer. If you tell people it's scarce they'll value it more and you'll be able to charge them more.

In effect, a reverse Moore's Law is operating on the internet, with bandwidth charges effectively halving every year.

What is without doubt is that broadband is now mainstream, with 90% of all Brits using it as their default connection to the internet and half of those connecting at 1Mbps or higher.

These two metrics play an important part in the ability of an internet TV service to be profitable - the trade-off between increasing quality and the cost of delivery.

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