In his recent presentation, David Clark opined that for a typical big U.S. local access internet service provider (ISP), e.g. Verizon or Comcast, network usage costs might be $0.05 to $0.10 per gigabyte (GB). This is a usage cost that has nothing to do with the peak rate. For a rural ISP such as a small WISP (wireless ISP), the usage cost might be ten times that. According to Clark, the typical residential user generates roughly 5 GB/month in internet traffic.
These figures appeared on Clark’s slides dated “November 2008”. He did not provide any supporting data, but he’s an authority with considerable credibility.
Clark noted that, at this cost, a DVD-quality movie can be delivered over the Internet for $0.25 to $0.50. That’s cheaper than U.S. postage. Hence streaming video probably offers cost-savings for Netflix and other movie rental businesses.
Would you happen to have a link to the slides?
Many thanks!
Clark didn’t give out copies of his slides at the talk, and I couldn’t find a copy on the web. You might try emailing him and asking for a copy. His page (linked to above) gives the email address ddc at csail.mit.edu