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Previous page... Trading mechanism
Features of bandwidth commoditization:
The principal features, once bandwidth is treated like a commodity, will be as follows:
Carriers' networks can be interconnected, facilitating immediate provisioning of contracted services.
A more efficient and flexible market will develop. Commodity producers will provide value-added services that capture a much larger margin than the commodity itself.
QoS standards will be developed and measured, facilitating the creation of a benchmark.
Standard bandwidth contracts will be created and matchmaking firms will develop which will switch capacities using the pooling points techniques described above.
Carriers will be able to expand capacity easily and rapidly for network buildouts.
Companies will be able to reserve bandwidth for one-off events, such as videoconferences.
The real benefit, however, will come from the applications and services not yet developed that will take advantage of the inexpensive and easily provisioned bandwidth.
Next page... Implications of bandwidth commoditization
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