Peering and Network Cost

Thu May 21 16:59:09 UTC 2015

On Wed, Apr 15, 2015 at 10:50 AM, Max Tulyev <maxtul at netassist.ua> wrote:
> 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.

Two things I am curious about are 1) What is the measured benefit of
moving a netflix server into your local ISP network

and 2) does anyone measure "cross town latency". If we lived in a
world where skype/voip/etc transited the local town only,
what sort of latencies would be see within an ISP and within a
cross-connect from, say a gfiber to a comcast?

Once upon a time I'd heard that most phone calls were within 6 miles
of the person's home, but I don't remember the breakdown of those call
percentages (?), and certainly the old-style phone system was
achieving very low latencies for those kinds of traffic.

> 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
>>
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-- 
Dave Täht
Open Networking needs **Open Source Hardware**

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