Originally Posted by AcEsSalvation
Figured I can ask this here is PostalTwinkie (still love the name) is in this thread.
Aren't companies charged for access to the internet? And are those that operate with high amounts of bandwidth charged based on that? And finally, are certain ones charged at an... exponential (wrong word, but close enough) amount more than others? Like Netflix or YouTube would have to pay non-linearly more for more traffic?
Bandwidth is very cheap, getting to it is the expensive part. So in cases of Netflix where they house their hardware in the same data centers as the major providers, they only need to run a line several feet to get to that bandwidth.
The really crazy thing about Netflix paying Comcast more is that Comcast customers are paying Comcast for internet service, and they attempt to use it to get to Netflix. Then on the other end of it Netflix is paying its provider (Comcast as well in some situations) for their connection. So you have two ends of this link paying for that link, and now Comcast is going back over to Netflix and saying "Pay us more because you use your bandwidth more." Not O.K.
When you reach the fiber level of contracts, with SLAs, that cost thousands per month, you don't have data caps. If you have a 10 Gbit connection, you can use it 24/7 100% so long as you pay your contracted cost. While the connections cost thousands per month, they are massive and the actual per Mb cost is really low by comparison of say residential services.
This is just greed, the big providers are already being paid at both ends. They want to have a third revenue stream off one service/link.