Can someone explain to me how buying/selling bandwidth works

August 12th, 2023

I’m really confused on how the whole process goes. I read wiki, but I can’t really find anything for me to understand.
Answer #1
Do you mean like a Datacenter Provider or a hoster or a ISP ?
Basically the 1st layer is the ISP who owns the lines , this guy sells someone an Internet Connection ,either unlimited or limited. If you are a private customer, you can easily, depending on your country , get an unlimited plan.
If you are a hoster , then you will probably be charged for each TB going over the wire, that cost you will defer back to your customers in turn with a little profit … that is the second layer … the thirs is the end-consumer who pays for his Internet and thats it … look at mobile phone contracts, you have X MB included in your plan, afterwards your bandwidth is either limited or charged … If you look at it from an infrastructural point of view :
The ISP has to put cables in the ground that reach the customers , who the dial into the network via Modem. The Modem then connects to the mainframe of the ISP with things like :
– DHCP
– DNS
– Routing
– etc.
To cover the costs for those services, the ISP will charge the customer a certain rate , once the traffic has exceeded the paid limits, another bill is due … as you are dialling into your ISP’s own “network” at first, the ISP knows exactly how many packets have been going over a certain interface / IP / MAC etc. and thus can sell you more bandwidth if you want it. The other point again is the speed, which you are probably reffering to :
– the speed itself is controlled from the ISP , a so called “throttle”, meaning : u buy a 100mbit line, the ISP sets the throttle for your IP / MAC to 100MBIts on his network , and bang, that is it.
– if you want more, and have a connection that can go faster, then pay more…
same with older processors :
The good old AMD processors were all the very same ones , they just have been “limited” by AMD and the faster , unlocked ones , have been sold at a higher price … more speed/ power , more revenue … If you want to know more, please specify the question a bit better

 

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