[NANOG] Level3 not honoring Broadwing contracts?

David Hubbard dhubbard at dino.hostasaurus.com
Tue Apr 29 09:25:38 CDT 2008


From: Chris Owen [mailto:owenc at hubris.net] 
> 
> It was clear from the conversation that he never considered for a  
> moment that we might actually pay the new rate.  He just assumed we  
> were gone as soon as it happened.  Obviously I don't have a business  
> degree because I don't understand the business model of buying up  
> business and then going out of your way to chase off their 
> customers.   
> The Level3 higher ups must see something I don't.
> 

I think the idea is that raise the rates dramatically on everyone,
those who stay, now you're making more profit off of them, those
that go were probably small enough that they were able to easily 
leave so you're clearing up room for the customers who are too
large to profitably move and who have no choice but to continue
growing in the existing space at the new inflated rates.  Can't say
I like it as a customer since I'm on the receiving end of a re-rate
that increased costs by 50%, but makes business sense obviously
since I didn't leave, as I'm sure many others didn't either.  If
you use a lot of power or floor space though, and not massive amounts
of bandwidth, their new rates are very close to making it profitable
to build your own facility, maybe they just want to sell bandwidth now.

David




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