Comment: Re:Its like it costs Comcast less to stream their (Score 1) 272
I have worked on the bill pay side of intercarrier compensation and have also worked on the accounting side of intercarrier compensation. I've done this for wireless, CLECs, and for ILECs. The way that a large carrier pays for bandwidth is not like you assume. The carrier will purchase drains with other carriers that have a lot of peering (such as Level3). That drain (usually GigE or 10GigE but there are still OC circuits being used) has three different charges associated with it. The first charge is the access charge, this is just a charge for the circuit and access to the POP that the peered carrier is at. Next you will have a minimum commitment based on a certain amount of bandwidth at the contracted per megabyte rate (which is usually a few dollars per megabyte but it is lower than it sounds when you hear how the bandwidth you are billed for is calculated). Most contracts the bandwidth comes from a sample. For example you might have the prior month split into hour long segments. Level 3 would take the hour that falls into the 75th percentile and bill you based on the number of megs of bandwidth used during that hour.