Please sorry if the following question seems stupid. Otherwise direct me to the appropriate place to ask it.
My question is, the webhosting companies where do they lease/get their bandwidth from? Do they rent the bandwidth from telecommunication companies?
thanks
Yes. Typical providers include most of the the big telecoms, plus some extra names that are specific to data transit: AT&T, Cogent, Comcast, Level3, NTT, Verizon...
Note that pricing on bandwidth gets weird for large users. Most web hosts pay on a burstable billing plan (typically 95th percentile with a minimum commit), rather than flat-rate or per byte. Some really large companies that run a lot of their own infrastructure (e.g, Google) pay nothing at all for peering.