Dear jayanta,

On Mon, 2005-09-26 at 22:39 +0530, Jayanta Chandra Chandra wrote:
<snipped>
> * here? I read some where that TATA bought Tyco and Tyco's underwater        *
> * submarine cables' _unlit_ capacity was some Terabits! Reliance             *
> * purchased FLAG telecom. It too has a huge network and a huge capacity!     *
> * WTF? India, as a *whole* uses some few hunderd Megabits of capacity and

t'was a passionate post you forwarded, but unfortunately, little
understanding of how international bandwidth "billing" happens. 

Those that have studied economics sometime and are familiar with balance
of payment and trade deficit will have it easier to understand this.
I'll try to make it as simple as possible, using a simplistic model of
just 2 countries - India and the USA.

The accounts are settled this way :

1. Calculate total bill for all out-bound telco traffic from India and
terminating in US (lets assume it to be $ 100 million)

2. Calculate total bill for all out-bound telco traffic from US and
terminating in India (lets assume it to be $72 million)

3. The difference between 1 & 2 is calculated (using above assumption it
comes to $28 million)

So, in this case, India owes US a total of $ 28 million - this is the
actual amount payable.

Now this calculation is important because in Europe or the US, the telco
traffic is often local (i.e. both the end-points are with-in Europe or
the US respectively). But in the case of India, more than 90% of the
Internet traffic is out-bound (i.e. the other end-point in most likely
in US or Europe).

Now apply the telco billing logic, you can see for yourself one of the
reason why out-bound bandwidth cost is so exorbitant in India. Its the
same logic by which your local / STD calls are way cheaper than ISD
calls.

hth
-indra


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Indranil Das Gupta
Chief Technology Architect

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