Current street prices for US Internet Transit

Mon Aug 16 17:57:54 UTC 2004

To give you guys additionnal information, prices in France (probably in all Western Europe) are quite similar to those currently in
the USA. One can also notice that peering costs are also cheaper in Europe than in North America.
(monthly fees are around 1000-1300$ in most European IX's)

I unfortunately share Bill's feelings about more turbulences to come. And this applies not only to the IP transit field, but rather
to the whole telecom industry. Rough days that we live..

Fred
___________________________________
Frederic NGUYEN
Engineering Manager
T-Online / Club Internet
fnguyen at t-online.fr

----- Message d'origine ----- 
De : "William B. Norton" <wbn at equinix.com>
À : "Michel Py" <michel at arneill-py.sacramento.ca.us>; "William B. Norton" <wbn at equinix.com>; <nanog at merit.edu>
Envoyé : lundi 16 août 2004 19:16
Objet : RE: Current street prices for US Internet Transit

Thanks to all who replied with data, and yes, the pricing was all 95th
percentile.

Wow - the U.S. has an amazingly unhealthy and cut throat transit market in
2004.

About 20 folks responded, most saying the Peering Coordinator quotes
(below) sounded about right.

> > ISP Transit Commits and Prices
>
>---------------------------------------------------------------------------------------------------------------------
> > 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

A couple people said these prices were TOO HIGH, particularly for the gig
commit, although several multi-gig commits came in tiered; for example,
$45/Mbps for 1G commit, $35 for 2G, etc. on down to $21 for 8G
commit.  (One Tier 2 ISP said that they sold 1G commit as low as $18/Mbps,
presumably simply reselling Tier 1 BW so the difference may be negligible.)

Three said that these transit prices were TOO LOW, in one case they paid
about double these numbers. It was interesting that these three were a
content company, a cable company and a DSL company, folks who traditionally
don't sell transit. Maybe they are in a retail market for transit, while
everyone else buys in the wholesale market.

Since so many said these prices are about right, I'll use them for the
Peering versus Transit analysis. A couple people pointed to the 10M commit
being closer to $80/Mbps, so that may be an adjustment.

Given the adjustment, I thought you might be interested in how the U.S.
transit prices compare against a handful of other Peering Ecosystems:

         The Cost of Internet Transit in.
Commit  AU      SG      JP      HK      USA
1 Mbps  $720    $625    $490    $185    $125
10 Mbps $410    $350    $150    $100    $80
100 Mbps        $325    $210    $110    $80     $45
1000 Mbps       $305    $115    $50     $50     $30

Round numbers anyway FWIW. Hope this helps. I feel bad for those selling
transit these days - at these prices, margins must be mighty thin, and I
suspect we will see some more turbulence in the industry.

Bill