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Hi Henry,

Most people seem to think the real money (for the carriers) is in selling service to businesses, not consumers. As you said, it's historically been T1 connections that have been sold but this model is starting to change as more and more work is done with things like Ethernet. I don't think anybody has a clear answer, but the question becomes, what will happen as a result of a transition to Ethernet service in the access and metro markets? The cost is much lower (to the customer) therefore the revenue will be lower (per bit) to the carrier. Will more bits be used by the business to keep the revenues at a high level? Can revenues grow? Can carriers keep squeezing down the cost of equipment (which is bad for the component and equipment vendors)? Can the operational expenses be dramatcially lower (good for everyone)?

These are the types of things I'm thinking about....

Good post - thought provoking.

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