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[swmike at swm.pp.se (Mikael Abrahamsson)]

On Wed, 22 Aug 2012, Sean Harlow wrote:

> As far as I can tell, the actual cost of the bits being transferred is 
> so minuscule as to be practically irrelevant for anyone who's not at the 
> scale to be dealing directly with Tier 1 carriers.  Capacity costs 
> money, but once it's there utilization is nothing.

The problem the OP is probably dealing with is an incumbant who they are 
buying capacity from at hugely inflated prices, so all of a sudden the 
cost of capacity is a significant part of total operating cost.

There are still markets in the world where a megabit/s of capacity can 
cost hundreds of dollars per month (even when buying tens of them). This 
is usually due to politics and/or law and thus regulatory problems, but 
it's still a situation some have to operate in.

-- 
Mikael Abrahamsson    email: swmike at swm.pp.se