Peering and Network Cost

Wed Apr 15 20:06:04 UTC 2015

On 4/15/15 07:28, Rod Beck wrote:
> Hi,
>
>
> As you all know, transit costs in the wholesale market today a few
> percent of what it did in 2000. I assume that most of that decline is
> due to a modified version of Moore's Law (I don't believe optics
> costs decline 50% every 18 months) and the advent of maverick players
> like Cogent that broker cozy oligopoly pricing.
>
>
> But I also wondering whether the advent of widespread peering
> (promiscuous?) among the Tier 2 players (buy transit and peer) has
> played a role. In 2000 peering was still an exclusive club and in
> contrast today Tier 2 players often have hundreds of peers. Peering
> should reduce costs and also demand in the wholesale IP market.
> Supply increases and demand falls.

You might find 
https://www.nanog.org/meetings/nanog53/presentations/Tuesday/valancius.pdf 
and the concomitant 
http://conferences.sigcomm.org/sigcomm/2011/papers/sigcomm/p194.pdf 
interesting.

-Scot

>
>
> I thank you in advance for any insights.
>
>
> Regards,
>
>
> - R.
>
>
> Roderick Beck Sales Director/Europe and the Americas Hibernia
> Networks
>
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