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| Bandwidth Brokerage |
Bandwidth Brokerage
A bandwidth brokerage treats bandwidth as a commodity that is easily resold. The brokerages take advantage of the fact that bandwidth is no longer under the grip of traditional telecom pricing schemes. Bandwidth brokerages are essentially clearinghouses for bandwidth on public networks. Telecom deregulation, completion, and the growing availability of bandwidth have affected these schemes. Clearing houses make money by transacting bandwidth exchanges, usually between carriers and ISPs. Their goal is to make bandwidth trading easy. Clients can bid on the capacity they need or trade capacity they own but are not using.
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