Metcalfe's law

Value of a communication network is proportional to n^2 (the number of pairwise connections) / From Wikipedia, the free encyclopedia

Metcalfe's law states that the value of a telecommunications network is proportional to the square of the number of connected users of the system (n2). First formulated in this form by George Gilder in 1993,[1] and attributed to Robert Metcalfe in regard to Ethernet, Metcalfe's law was originally presented, c. 1980, not in terms of users, but rather of "compatible communicating devices" (e.g., fax machines, telephones).[2] Only later with the globalization of the Internet did this law carry over to users and networks as its original intent was to describe Ethernet connections.[3]

Two telephones can make only one connection, five can make 10 connections, and twelve can make 66 connections.