OK, I am not going to ramble on to much, but I'll give you some real info:
1. Bandwidth Prices (Current Market Situation): Yes, Bandwidth is getting cheaper. I have a contracts for additional fiber through 2 more providers, I just have not deployed them yet. 1 is for $60/MBps and the 2nd is for $75/Mbps and they are both through well known companies with a great networks and peering. I'd tell you who they are, but I had to sign NDA's. The $60/MBps is only if I purchase 400 MBps and the $75/Mbps is If I purchase 200 MBps. This is twice as much as Cogent, but it is well below what we have been seeing in the past.
2. Bandwidth Prices (Future Market Situation): Technologies will have an effect on Bandwidth Prices, guaranteed. What happens when you take something and increase the supply 4x?, the prices drop. OC-768 Hardware is ready, and telecommunications company are getting ready to deploy it. To explain, by upgrading the equipment that routes Internet traffic, the new hardware will increase OC-192 lines to OC-768 lines. The existing fiber optic lines will now be able to transfer at 4 X the speed, quadrupling a networks bandwidth once deployed. Alcatel, Lucent, Nortel and Ciena are all companies that are making this possible by developing the next generation of routing equipment. This technology is expected to reach the market in 2 years. (I'm waiting)
3. Cogents Future: Cogent has secured nearly $500 million in capital to fund its aggressive nationwide network build. They are backed by Cisco. In response to Bash's mis-guided comment, Cogent has access agreements to service over 3,400 Buildings totaling close to one billion square feet of space in 20 of the nation?s largest markets.
4. What if?: What if Cogent goes out of business? How does it effect me as an ISP and how does it effect you? Well, as an ISP, I am setting myself up with the next best deal and deploying that as we speak. If Cogent fails, I would barely have to raise my prices. As a webmaster or adult business owner, you will have to choose the next best thing or just give up on your business. My focus as CEO of Cologroup is to offer the best prices available to my customers. I am constantly doing research and laying the ground work so that if something did happen to Cogent, my customers would not have to change ISPs, they could still get the best deal in the industry from cologroup.com
Well, that is my input, and I hope my customers and anyone else who uses Cogent finds it useful. Just keep in mind, this is the adult indutstry, no banks finance us, there are no IPOs, and you dont last loosing money or barely making it. If you have a chance to cut your costs, cut your costs and be happy about it.
