Question about peering

Luke S. Crawford lsc at prgmr.com
Sat Apr 7 19:34:10 CDT 2012


On Sat, Apr 07, 2012 at 07:25:24PM -0400, Robert E. Seastrom wrote:
> Generally the costs of transit are pushed down by competition.  As a
> vendor your costs for bandwidth/transport/port*bw may drop but you are
> unlikely to drop your prices to your customers merely because your
> costs have gone down unless prompted to by a competitor.

ah, so it's not the cost of production that is the problem, it is
the 'natural monopoly' state of an IX that is the problem.

It seems like that problem could be overcome by making the 
IX a cooperative owned by the members, maybe? 

> Consider the case of a peering n00b network (the target of this
> discussion after all) in hypothetical facility that charges
> $1000/month for a gigabit ethernet port on the peering fabric.  You

I am in almost that exact position (A peering n00b network) - Of 
couse, I'm fairly certain I'm paying sucker prices,  but I can get a 
gigE to any2 at 55 s market for less than a third the price you quote. 

just a data point.




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