Peering and Network Cost

Wed Apr 15 17:50:41 UTC 2015

Hi Roderick,

transit cost is lowering close to peering cost, so it is doubghtful
economy on small channels. If you don't live in
Amsterdam/Frankfurt/London - add the DWDM cost from you to one of major
IX. That's the magic.

In large scale peering is still efficient. It is efficient on local
traffic which is often huge.

On 04/15/15 17:28, Rod Beck wrote:
> Hi,
> 
> 
> As you all know, transit costs in the wholesale market today a few percent of what it did in 2000. I assume that most of that decline is due to a modified version of Moore's Law (I don't believe optics costs decline 50% every 18 months) and the advent of maverick players like Cogent that broker cozy oligopoly pricing.
> 
> 
> But I also wondering whether the advent of widespread peering (promiscuous?) among the Tier 2 players (buy transit and peer) has played a role. In 2000 peering was still an exclusive club and in contrast today Tier 2 players often have hundreds of peers. Peering should reduce costs and also demand in the wholesale IP market. Supply increases and demand falls.
> 
> 
> I thank you in advance for any insights.
> 
> 
> Regards,
> 
> 
> - R.
> 
> 
> Roderick Beck
> Sales Director/Europe and the Americas
> Hibernia Networks
> 
> This e-mail and any attachments thereto is intended only for use by the addressee(s) named herein and may be proprietary and/or legally privileged. If you are not the intended recipient of this e-mail, you are hereby notified that any dissemination, distribution or copying of this email, and any attachments thereto, without the prior written permission of the sender is strictly prohibited. If you receive this e-mail in error, please immediately telephone or e-mail the sender and permanently delete the original copy and any copy of this e-mail, and any printout thereof. All documents, contracts or agreements referred or attached to this e-mail are SUBJECT TO CONTRACT. The contents of an attachment to this e-mail may contain software viruses that could damage your own computer system. While Hibernia Networks has taken every reasonable precaution to minimize this risk, we cannot accept liability for any damage that you sustain as a result of software viruses. You should carry out your 
own virus checks before opening any attachment.
> 