The large ISPs and Peering

Fri Jul 27 14:38:53 UTC 2001

On Thu, 26 Jul 2001, Jeff Aitken wrote:

>
> This makes absolutely no sense.  Are you saying that uninvolved
> parties should be able to dictate where and how large "promising
> local ISPs" should interconnect?  Maybe we should have a vote on
> NANOG!
>
>   "How does this choice of interconnection point make you feel?"

  Thanks, but the choice of interconnection point affects us all whether
we are big telco's or not.  I would not want to dictate where and how, but
having a little influence in where and how would be OK.  I would want
nothing more.

> There's nothing preventing your provider from establishing additional
> regional peering where appropriate; if they fail to provide the level
> of service that you require you should vote with your wallet and select
> another provider.

 A point well taken.

>
>
> > There won't be if the Tier-1's all form a "consotium."
> > They will collude on network build out and stop competing [...]
> > If the "consortium" is formmed it will wipe out all those strides [...]
> > A consortium will wipe out the glut and raise prices.
> > The consortium will control supply at a lower level.
> > Prices will increase.
> > Yes, but the equalization will happen at the higher price.
> > There's nobody to compete with, so why keep the price down?
> > If you think that's not true, think again.
>
> Proof by repeated assertion, eh?

  We can look at Opec for starters.  The Steel price fixings from the
"consotium" of american steel companies during the 50's and 60's.  What
makes you think telecomm is any different than any other business?  There
have been numerous hand slappings around price fixing by "consortiums"
throughout the 70's, 80's and 90's.

>
> I'm really confused here.  How did we go from "certain large ISPs
> are working together to reduce the cost of interconnection amongst
> themselves" to "there will be no competition between these large
> providers?"

My paranoia about large companies getting too close together. :-)

Curtis

-- 
------------------------------------------------------------
Curtis Maurand		     System Administrator
lamere.net Powered by Prexar http://www.lamere.net
mailto:curtis at lamere.net     Linux, OS/2, Windows (any flavor)
http://www.prexar.com	     Cisco, OpenRoute, Lucent
                             MySQL, SQL Server, PHP, Perl
------------------------------------------------------------