The larger the provider is the more they are able to negotiate a lower rate from transit providers. The larger a provider is the more peering they get which reduces the total amount of bandwidth they pay for in general.
Then when you consider the cost of the equipment vs the cost of the throughput you will see that as a network becomes larger, network equipment isn't the main cost driving factor, nor are network engineers.
Simply put Amazon is over charging customers by 10x on bandwidth fees.
If we are able to sell bandwidth to customers at $0.01 cents per GB profitably, which accounts for paying for transit, network equipment, and network engineers, turning a profit for reinvestment, then AWS should be offering you a price that is 10x less than $0.01 per GB because their bandwidth cost should be significantly better than ours.
The larger the provider is the more they are able to negotiate a lower rate from transit providers. The larger a provider is the more peering they get which reduces the total amount of bandwidth they pay for in general.
Then when you consider the cost of the equipment vs the cost of the throughput you will see that as a network becomes larger, network equipment isn't the main cost driving factor, nor are network engineers.
Simply put Amazon is over charging customers by 10x on bandwidth fees.
If we are able to sell bandwidth to customers at $0.01 cents per GB profitably, which accounts for paying for transit, network equipment, and network engineers, turning a profit for reinvestment, then AWS should be offering you a price that is 10x less than $0.01 per GB because their bandwidth cost should be significantly better than ours.
Instead they are charging you a 10x higher price.