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Previous page... Commoditization of bandwidth
Trading mechanism:
Carriers have been leasing capacity from each other for decades and ISPs have been setting up private peering connections with each other for several years, so the concept of using each other's bandwidth is not new. Over 200 ISPs in India will also start using such 'peering' exchanges, according to VSNL predictions.
The proposed operational mechanism for actual trading of bandwidth is based on the creation of 'pooling points'. These are switching and interconnection facilities in selected physical locations through which connections between bandwidth buyers and sellers may be established and monitored. These pooling points would be operated by an independent third party responsible for scheduling bandwidth connections, monitoring the quality of service (QoS) of each transaction and maintaining the physical security and operational integrity of the transactions. These pooling points will guarantee performance over multiple networks and change circuits in a matter of seconds, as opposed to days or months.
Next page... Features of bandwidth commoditization
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