Provider credibility - does it matter? was Re: Inter-provider relations
Barry Raveendran Greene
barry at singnet.com.sg
Sat Oct 26 03:11:09 UTC 1996
Jeremy Porter wrote:
>The Economist's model is incomplete, however I really doubt
>it could be argued that Europe subsidizes the US Internet.
>A large reason the cost of international leased lines are so
>high is due to projectionist tariffs in international Telecom.
>I understand it is cheaper to buy a leased line from the
>us to Europe than the other way around.
OK. So take the US 1/2 circuit costs for both halves of a Atlantic circuit. A T1 would cost 5 - 6 time more across the Atlantic vs 10 times the cost if it was 1/2 US 1/2 Euro-Telco. If the circuit was across the Pacific, and you used the US price for both 1/2s then a T1 would be 7 - 8 time more than a T1 in the US.
Yes, Jeremy. You cannot escape the fact that the rest of the world subsidizes US ISP who access the Internet around the world. The economics are skewed. A customer in a ISP in country X. would pay the realistic charges for International access. A customer in a ISP in the US pay domestic access for full international connectivity.
That's reality.
Barry
--
Barry Raveendran Greene | || || |
Senior Consulting Engineering | || || |
Singapore | |||| |||| |
tel: +65 738-5535 ext 235 | ..:||||||:..:||||||:.. |
e-mail: bgreene at cisco.com | c i s c o S y s t e m s |
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