From the latest draft of Bill Norton’s excellent paper, presented at APRICOT 2007, on how video on the Internet is the next disruption of the U.S. peering ecosystem:
The kicker, however, comes at the close:
Peer2Peer distribution for Internet Videos is by far the least expensive to the Video Service Provider, but it accomplishes this by moving almost all of the distribution costs to the last mile providers.
Related posts:
This was a an interesting paper but it has been out for some time. I wrote my own thoughts on it back in Feb and have my own thoughts on how the last mile guys get the last laugh.
http://nyquistcapital.com/2007/02/05/transit-bandwidth-inflation/
nice find pk!
That’s quite a kicker. I hadn’t thought of it quite that way, but he is right.
Parand — Yeah, that was my reaction too. It’s always nice to have someone remind that you costs don’t always disappear from systems; sometimes they’re just transferred to a less visible place.
Bob Cringeley recently has been writing very interesting columns on the ramifications of all this:
http://www.pbs.org/cringely/