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Openai/67d06dcb-ee9c-8006-b328-29ff839c37c1
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===== 1. What Went Wrong in the Initial Calculations ===== * Overestimated Pricing & Revenue: The initial revenue calculations assumed selling bandwidth at a flat rate of $8,000 per Gbps per month across extremely high volumes. In practice, when large volumes are sold, the price per Gbps usually falls dramatically due to economies of scale and market competition. - For example, while smaller volumes might fetch $8,000 per Gbps/month, selling hundreds of Tbps would push prices lower as buyers and competitors negotiate market rates. * Unrealistic Sales Volume Assumptions: The earlier model assumed that nearly all of the “excess” 800 Tbps could be monetized at premium pricing. In reality, demand is spread out, and customers typically purchase only a fraction of such huge capacities. Markets in Africa and neighboring regions currently have significant gaps—but not enough demand to absorb hundreds of Tbps at premium pricing immediately. * Ignoring Operational and Market Realities: The initial numbers did not account for operational expenditures, maintenance, competitive pressures, or the gradual ramp-up in sales. Even if infrastructure is built for 800 Tbps, it’s unlikely that 100% of that capacity will be sold at high rates from day one.
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