interconnection costs (off list)

Tue Dec 22 19:28:13 UTC 2015

Salam Reza,

You are asking an interesting set of questions, it might be easier to answer the over a phone call conversation (at least fro our perspective, being a small ISP/NSP ). I can write to you a lengthy reply, but am not sure if I will be able to convey to you the information properly.

The way you have posed the question, indicates to me that you are taking a particular view of a 'network', which is not the same view I hold. I am not sure if your view is more prevalent or our view as a service provider.

Regardless I think it would make for an interesting conversation. Feel free to call me at your convenience.

Regards.

Faisal Imtiaz
Snappy Internet & Telecom
7266 SW 48 Street
Miami, FL 33155
Tel: 305 663 5518 x 232

Help-desk: (305)663-5518 Option 2 or Email: Support at Snappytelecom.net

----- Original Message -----
> From: "Reza Motamedi" <motamedi at cs.uoregon.edu>
> To: "nanog list" <nanog at nanog.org>
> Sent: Tuesday, December 22, 2015 11:44:06 AM
> Subject: interconnection costs

> Hi NANOG
> 
> We are a group of researchers and our focus is on the economy of
> interconnection in the Internet. My question is mainly about the various
> costs of an AS establishing a connection with another AS, including the
> costs charged by the colocation providers. I am familiar with most of the
> connection options such as public peering on IXP, and private peering
> through xconnects. My understanding is that in addition to the cost of
> transit that the smaller AS pays to the larger AS, in the former you pay a
> monthly fee to establish a link to the switching fabric and then you can
> connect to as many ASes that are member in the IXP, and in the later you
> need to pay for as many xconnects that you need to connect to as many ASes
> that you plan to peer with. Obviously in both cases there is the cost of
> being in the colocation and renting a rack or whatever. What are the other
> costs involved? How should the AS reach the colocation center in the first
> place? I don't think every network can dig a hole an lay cables. Who should
> they pay to get from one PoP to another? Do ASes have to pay for xconnect
> to connect their PoP in a data center to the rest of their network?
> 
> I think there is no single answer as different businesses may have
> different pricing models. I hope the discussion can help me understand the
> whole ecosystem a little bit better.
> 
> 
> Best Regards
> Reza Motamedi (R.M)
> Graduate Research Fellow
> Oregon Network Research Group
> Computer and Information Science
> University of Oregon