In my recent post I highlighted the differences in IP transit cost between locations. At the low end of transit costs are those locations where content is generated – major cities in which the major content server farms are located (typically in the US and in W. Europe major cities). Baseline prices of $0.5-1 per Mbps per month are the actual cost for placing it on the web. From there on, prices start to rise as the factor of transport costs go up and as the distance grows from the content source creation to the content consumption destination.
The further away the eyeballs are, the smaller the market is. The fewer the transport alternatives are, the longer the transport chain is – and the price of transport (obviously) increases.
Actually this model is no different than shipping any other goods. An orange in California costs $0.5 per kg in wholesale prices. In Vancouver, wholesalers charge $3 since they have to pay the $0.5 and an additional $2 transport fee, plus they want to make a profit. The supermarket owner in the remote Whitehorse, Yukon, pays $12 for the oranges. What starts off at $3 in Vancouver, plus a cascade of transporters all the way to Whitehorse inevitably drives up the cost to sell those oranges. No one is ripping anyone else off in this process. But is there a way to provide affordable oranges to Whitehorse?
What if you could just teleport the oranges from California to Whitehorse? What if this teleportation could be achieved at fractions of the transport cost, and without involving any middlemen?
That’s exactly what we do at DiViNetworks; for bits, not oranges. We are able to teleport 30-50% of the content from its source to any destination worldwide, without loading any transport, and over any combination of transport networks. No data is lost along the way. That’s what we term VIRTUAL CAPACITY.
We share the price gap between our cost and the market IP price with our customers, guaranteeing that our customer ISPs pay HALF PRICE for the additional bandwidth.
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