Cogent/Level 3 depeering

Thu Oct 6 06:15:58 UTC 2005

On Thu, 6 Oct 2005, Hannigan, Martin wrote:

>> The dialup case results in a very large number of users of a large
>> number of ISPs being single-homed to one or the other of these
>> outfits. Keep that in mind too when you next sign a contract for
>> wholesale dialup service.
>
> Dialup costs are $5 a month or less wholesale. What do you expect?

That reminds me. If you remember the whole thing started with that L3
complains that Cogent is trying to steal its customers. I kind of checked
and it appears Cogent is after dialup/dsl/cable ISPs who as you can
guess have absolutely opposite traffic ratio to typical hosting provider 
that uses cogent. Obviously this extra traffic does not cost Cogent 
anything (even if its not peering but transit) and allows it to level
its in/out ratio.

Now going back to it L3 considers that by offering them connectivity
at almost no cost Cogent is dumping - but L3 did the same to get those
customers under their contracts some years ago (also in order to even
its ratio) and besides that I've heard several times from smaller ISPs 
(see discussion on isp-bandwidth year or two ago) that they are willing 
to provide transit for dialup & dsl ISPs at no charge (and I think I
know couple cases where that is true) so they would have better ratio
for peering. Now Cogent is also offering free transit for single-homed
L3 customers to spite L3 after depeering - majority of such single-homed
transit customers are in fact these dsl/dialup ISPs Cogent is after
which is why they were willing to make this offer ...

Now with 0 transit cost and 0 equipment cost (mostly old dialup equipment 
loans for which have by now been paid for) its no wonder dialup providers 
are able to offer it at $5/mo if somebody else takes care of the customer 
support & billing ...

-- 
William Leibzon
Elan Networks
william at elan.net