How NTC reduce cost by installing Google cache server in Nepal

How NTC reduce its cost with the installation of google cache server? 


Recently Google installed it’s cache server in Nepal at Internet Exchange Point of Nepal telecom (NTC).

NTC is the only and biggest internet service provider in Nepal. It has certain bandwidth limit which NTC have to pay. Let say for example NTC bought 500MBPS internet bandwidth, that means NTC has maximum capacity of 500MBPS to transfer data at a time. It gives services to its customers by dividing the internet bandwidth of 500MBps , let say for 1000 customers if it divide equally,  it would be (5000/1000)=500Kbps for each customer.

If  all the 1000 customers excess the internet at a time using its full capacity of 500kbps, then the maximum (1000*500kbps=500MBps) capacity of the NTC will be used up. If there are more customer added let say 100 more customer, total will be 1100, if they excess the the internet same time they can’t get full bandwidth what they have of (500kbps) so its divided as (500MBps/1100) = 363.64kbps per customer.

Simple hand sketch image of how internet operate in Nepal

Here as the customer demand is 500kbps but only gets 363.64kbps. So, to fulfill the customer demand NTC have to increase its bandwidth from 400MBps to 550MBps so all the 1100 customer gets their required bandwidth of 500kbps. So, here the NTC cost extra to increase its total bandwidth.

Ok, here with this example what I am going to make clear is, If some website is hosted in webserver located in Nepal and if some one browser the content from that server within the Nepal then its not using the NTC 550MBps internet bandwidth, instate we are connecting to that server as home network though its still a internet. What happen here is, NTC don’t have to use its purchased 550 MBps so NTC will transfer the locally hosted website data to its full strength usually 4MBps(4000kbps) . So, the locally hosted website like, open faster in our browser even the internet is slow or low(500kbps).

As Google is the most use internet service around the world if Google install its cache server in Nepal, the frequent access data will be store in that cache server. By this 550MBps of NTC bandwidth will wont be used and NTC save the Cost as well. Their clients get the data faster too.

Similar rule apply for other ISP (Internet Service Provider). For example internet service provider World Link have certain bandwidth, which they bought from other company’s like NTC.

The Internet is simply a network of networks.
The Internet is simply a network of networks.When you connect to the Internet, your computer becomes part of a network.

Here is more clarification…

Every computer that is connected to the Internet is part of a network, even the one in your home. For example, you may use a modem and dial a local number to connect to an Internet Service Provider (ISP). At work, you may be part of a local area network(LAN), but you most likely still connect to the Internet using an ISP that your company has contracted with. When you connect to your ISP, you become part of their network. The ISP may then connect to a larger network and become part of their network. The Internet is simply a network of networks.


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