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Where Is The Broadband?
gouldtj writes "First Monday is running an article in its current issue entitled: The many paradoxes of broadband. It discusses some of the issues and ideas behind broadband, but seems to focus on: Where is it? There is also a really nice discussion on the telecom industry in general, along with the .com boom."
I remember reading about how all of the ISPs figure out how they bill each other whenever they "peer" (i.e., connect) to another network. Lots of these contracts are apparently very complicated, but the primary metric that stuck with me was this: most companies pay for the number of packets injected into (not received from) a peer network .
Now obviously, not ALL contracts are the same, but there are some important ramifications from this concept. There are two ends of the "spectrum" of ISP's, those that are net information sources (inject more packets than they receive), and those that are net information sinks (receive more than they inject) at any peering point. End-user ISP's are therefore usually better off when their users are primarily downloading information. When home users' computers start serving more packets, the end-user ISP is forced to pay more to its provider because it has injected more packets into the adjacent network(s) at the peering point. Hosting company ISPs (hosting web servers, for instance) pay significantly more because they are net information sources, and inject far more packets into the network than they receive.
Granted, this is a vast oversimplification of what is a very complex topic that not many people are familiar with, but in my opinion, it explains why it has traditionally always been cheaper to obtain download bandwidth than upload bandwidth: peering points generally "charge" based on packets sent. Anyone who knows differently can correct me... I'm still looking for the paper on BGP peering that I read that brought this all to my attention.