OpenTransit (france telecom) depeers cogent

Sat Apr 16 16:34:18 UTC 2005

Patrick W. Gilmore wrote:
>> I'm not sure about the US price war, I just can say that I've seen
>> an offer of AS174 in Switzerland which is 38% of the price of
>> AS1239  we currently pay (same CDR). I'm not sure if ths already
>> justifies  hell, but at least purgatory ;-)
> 
> Strange, I am REALLY HAPPY when someone offers me a comparable
> product for less money.  If you prefer to pay more, well, I'm happy
> for you.

Product is not comparable anymore, you'll miss ^174_5511_ ... just kidding.

> Back on topic, I am unclear on why "you sell X for less than I do" is
> justification for rotting in hell.  Whether X is below your cost is
> COMPLETELY immaterial.  Whether it is below their cost is irrelevant
> to me, but it might be important to some countries / laws /
> whatever.  If they are breaking a law, have someone investigate &
> charge them.

Not in the so called free markets like US or Switzerland, right?

The real horror comes when connecting comanies and enterprises away from
the main street. When local tail can only be provided by the incumbent.
How to make a good deal for the customer (IP feed + local tail) when the
IP Transit price is probably less than 2% of the actual costs?

I'd be quite pleased with AS174's price dumping policy, at least it 
helps to beat down the price of other suppliers and makes us more 
competitive.

F.