Robert,
Inetersting article. Here is something interesting from the article:
techweb.com
"The bad news is the bandwidth demand continues to grow by some estimates at least three times as fast as supply," the report says.
How exactly do you define that? From Economics 101, you have a demand curve, that plots the demand vs. price. That's basically a static picture, because as demand rises, the price rises.
If you add another dimension to the graph - time and changing supply, you could end up with the same price if the supply increases at the same pace as demand.
As far as supply is concerned, the costs may be dropping as a result of technological innovation.
But how can you have a present situation, where the prices for bandwidth are dropping (fact) and demand still growing 4 times as fast as supply?
How exactly do they measure demand? My definition of demand is the amount of stuff I am willing to buy at market price. Which pretty much is equal to current supply.
"Demand for bandwidth to provide emerging services like voice and video over IP is outpacing supply by a growing margin, a telecom-industry study said."
Voice over IP actually takes less bandwidth than voice over circuit switched network. I still think the video on demand will be the next leap, when and if it happens. In the meantime, I think the growth in supply will keep up, if not outpace the growth in demand.
Joe |
