Don't have a login yet?
Sign up now
17 January 2013
| Kavit Majithia
Epsilon's decision to reintroduce a bandwidth trading platform after widespread failures in the market over a decade ago has again brought about the age-old question: is bandwidth a tradable commodity?
Over a decade ago, the former founder and board member at US
exchange company Arbinet, Alex Mashinsky, met with a group of
During the meeting, he looked the group of hard-nosed traders
in the eyes and told them, that while their idea to create a
bandwidth exchange platform was interesting, "it was not going
to be about data for the next 10 years, it was going to be
The board ignored Mashinsky and told him in no uncertain terms
that "there is an insurmountable amount of money in bandwidth
trading". The rest, as they say, is history.
Enron invested aggressively in bandwidth trading, and
attempted to consolidate a market that had little belief their
model would work. Enron’s hard-line approach
quickly left its investors out of pocket, and the company
eventually went bust.
Although his prediction proved correct, Mashinsky regrets
voicing his concern to the...
Richard Elliott has nailed it; primarily they were corrupt and dishonest and arrogantly incapable of listening to what their would be customers were telling them.
Feb 05, 2013