Question

How much money do you spend to send a single packet to the Internet? How much money do you spend to send 1 billion packets to the Internet? Try to explain how do you get these numbers? Try to discuss whether it is a reasonable business model or not?

Answer 1

How much money do you spend to send a single packet to the Internet?

• Size of a packet is 0.065535 MB as it is an TCP connection. I have an data pack of 1GB per day which makes upto 30GB per month and it is a 3 month pack so it becomes 90GB but the internet provider only gives me 84GB per month cutting all the taxes.
• I pay for the pack $4.74. Hence,
  • ​0.24068767908(size in mb)/0.065535(size of packet in mb) = $0.050(price for packet)
• Hence, I am paying $0.050 for per packet send to the internet.

How much money do you spend to send 1 billion packets to the Internet?

• As I am paying $0.050 for each packet. I will be paying $0.05 * 1 billion which will make it to 20 billion for 1 billion packets to the internet.

Hence, this is the amount that I will be paying for 1 billion packets to the internet.

Reasonable Business Model:

• Yes, it is one of the most efficient and reasonable model because what the compay pay for this business is actually very diminishing value and they are sharing a lot of profit in this industry.
• The customer base is more than half of the world's population and as we all know internet has became an basic need of the 21st century and there is less financing required in this business.
• As, the equipments are to be setted once a time which will be generated easily in less of a time.

Hence, it is the reasonable business model.