September 2001
Beginner
528 pages
14h 14m
English
Content preview from Essential Guide to Telecommunications, The, Third EditionBecome an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
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Bandwidth Trading: The Commoditization of Bandwidth
Just as commodities such as natural gas, oil and electricity are traded, bandwidth trading in telecommunications is just emerging as a way to buy and sell capacity and hedge the risks of building new routes and buying capacity. For example, a competitive local exchange carrier (CLEC) that sells both long distance and local service can decrease its risk of price spikes by locking in a future price for bandwidth leases. The seller, a carrier, can cut its risk of adding expensive electronics such as wavelength division multiplexing (WDM) to dark fiber by selling future capacity. A future sale locks in a price floor and future revenues. It guarantees the price won't drop below a certain price for ...
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