A corollary of the statement “Time is Money” is that things that cause time to be consumed are money as well – distance is related to time through velocity and information is related to time in the same way through bandwidth. Velocity is a crucial factor in determining the cost of exchanging physical goods and bandwidth is similarly crucial in determining in the cost of exchanging information. In both cases speed costs. The changing relationships between time, distance, information, and money are at the heart of today’s globalization trends.
The cost of a 3-minute transatlantic phone call is an interesting metric since it fixes distance and the amount of information. The graph above comes from a presentation on Globalization by the World Bank. It clearly shows that the cost of a 3-minute call between New York and London has been decaying exponentially over 6 decades. In fact this metric has a half-life of about a decade.