Current street prices for US Internet Transit

Thu Aug 12 12:51:46 UTC 2004

Hi all -

As I'm putting together some Peering vs. Transit pricing models for an 
upcoming peering forum in NYC, I'd like to verify some current transit 
prices I am getting from the field. Here is what the peering coordinators 
are telling me... Sound about right to you guys?

ISP Transit Commits and Prices (Tier 2 ISP buying from non-bottom feeder ISPs)
---------------------------------------------------------------------------------------------------------------------
if you commit to    1M per month you will pay about $125/Mbps
if you commit to   10M per month you will pay about $ 60/Mbps
if you commit to  100M per month you will pay about $45/Mbps
if you commit to 1000M per month you will pay about $30/Mbps

Round Number Costs for Local Loops into an IX
100M $1000/month
1000M $4000/month

If you have any actual price quote #'s that I can generalize that would be 
great. If you can say too high, too low, about right based on the commits, 
that would help also.

Please note that I'm not looking for the best price one could get, but 
rather an average street price a Tier 2 ISP or cable company (or network 
savvy Content company) would pay. These prices are going to used for 
modelling The Business Case for Peering v2, an update to the original white 
paper describing when peering makes sense financially... more on this later.

Thanks!

Bill