Backbone IP network Economics - peering and transit

Thu Apr 22 18:45:36 UTC 2004

> >> where's the "lot of cost"?
> 
> > Stephen J. Wilcox
> > This is private vs public..
> 
> Even if it's private, and assuming that you're clever enough not to peer
> for a modem's worth of traffic, the cost is a no-brainer, IMHO.
> Someone checks my math please:
> At $20 per megabit for transit (which I find very low, but let's go for
> it anyway) a GE link for peering with an average use of 10% means $24000
> per year saved; pays for the xconnect.

If you have a gig of traffic to peer out to a single AS, you need quite a
bit of infrastructure to support the peering and that infrastructure does
not come cheap.

Alex