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Actually bandwidth is bought by the gig over here, but ........
Reseller, ok, lets talk BArry, because obvisouly you are an idiot. Qwest and Pac Bell own a majority of the Internet pipes in California. Basically, other companies lease these pipes. For example companies like AT&T lease lines from the above. Then at some point, these pipes end up at a DC, where they are sold to people like myself. We then resell them to you guys. So yes, Hosting is all about reselling. No one really owns anything. It is all vapor and it is a bad business to get into. I would not suggest setting up a hosting company because you will just loose money. You are really a smart fellow, stick to toys.
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