Peering and Network Cost

Sun Apr 19 09:23:53 UTC 2015

So why is IX peering so expensive?

Again if I look at my local IX (dix.dk) they have about 40 networks
connected. Each network pays minimum 5800 USD a year. That gives them a
budget of 240000+ USD a year.

But the only service is running an old layer 2 switch.

Why do these guys deserve to be paid that much for so little?

Recently we had a competitor show up in the form of Netnod. However the
pricing is almost exactly the same, although Netnod tries to deliver
slightly more service.

Seems to me that this an unsound market. The 40 dix particants should
donate 1000 USD once and get a new layer 2 switch. Why does that not happen?

Does not look like it is a local phenomenon either. IX'es all over are way
more expensive than they should be.

Regards

Baldur