Wholesale Internet Bandwidth Prices Keep Falling

Om Malik at gigaom.com reports:
"...Prices on Internet bandwidth continue to fall ...however, there’s a good chance you’re wondering what I’m talking about — after all, broadband service providers like Comcast and Time Warner are talking about putting the meter on the bandwidth they serve up to residential subscribers. What I’m talking about is wholesale Internet bandwidth that is sold to Internet services providers (ISPs) and content companies like Yahoo and Google. This is called IP Transit and it is sold at a rate of “per megabit per second per month” and often requires a monthly bandwidth commitment. Today research firm Telegeography came out with a report that shows the price of wholesale Internet access (IP transit), while varied around the globe, are still in decline. Here are some facts."
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Bell and Rogers complain about their lack of network capacity, but 1) there is no internet network capacity shortage; and 2) bandwidth is getting cheaper and cheaper... so why does cable internet now cost about $50 a month, with a 60GB cap, and only about 4x dial-up speed (rather than the advertised 40x) for modern applications like P2P sharing?


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