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Executive Insight: Why the bandwidth debate judders on

Filmed at on 04 January 2013 | Posted Over 6 months
1 Comments | (0)
Tags: bandwidth explosion peering network economics OTT

As the World Conference on International Telecommunications (WCIT) and its contentious 'sending network pays' proposals fade away, a new  fracas is brewing up in France as operators there allegedly squeeze Google's pipes in an attempt to get it to 'pay up'. What better time to ask: is there really a big problem with the alleged "spiraling cost of delivering content" as OTT video kicks in (and who should pay); or is it really all about telcos trying to stem disintermediation? Benoît Felten of Diffraction Analysis talks bandwidth economics and network politics with Martyn Warwick. 

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(1) 22 April 2013 22:07:53 by Michael Elling

Google is able to price its access because it has approached the market horizontally and figured out ways to drive marginal cost down a priori at every layer and boundary point. It's pricing reflects this and there is risk in terms of generating the demand but that's the beauty and simplicity of the pricing strategy.