MCI had a very similar revenue based business model to Amazon.
As i understand the scheme.......MCI would sell an expensive circuit, and buy an expensive circuit from the customer/CLEC, cause the guy they were selling to didn't actually need the circuit and never had any intention of paying for it. They'd show lots of revenue but lose money on every transaction. There was very little real traffic, just lots of keep alive data on circuits that were bogus. Tons of revenue growth but real loses on every transaction as they built out network gear that set there and depreciated.
anyway I heard Amazon is scouting for Telecommunications personnel to build some network infrastructure.... is history gonna repeat itself?
FWIW, Google is MUCH better positioned to enter the Telecom space. Sybs refers to that bandwidth buildout that crashed. Google bought TONS of dark fiber for pennies on the $. It also bought MOT who has plenty of IP around whitespace management.
When all the anti-trust attention turns to Amazon (and it is starting to get more interesting in Europe. AAPL will be arguing that the Koh perverted anti-trust law in her ruling as Amazon is the monopolist -- which is a reasonable POV. And, the new Jeff Bezos book account of the Quidsi deal should put everyone on alert to Amazon's true nature...), Google will be able to get more aggressive rolling out the balance of its strategy.
Installed my Chromecast yesterday... Looks like Google will have a $35 top selling product into the holidays. Nice way to blunt Amazon Prime video (both by including Netflix while laying the groundwork for its own subscription service and maybe shopping delivery bundle). I'd like to see a Chromecast bundle for $79 with its own subscription (Google has plenty of resource to match or exceed AMZN's non exclusively licensed library) and free 2 day shipping. All the volume that it takes away from AMZN will hurt it big time this holiday season as it has massively ramped all fixed costs...