interconnection costs

Thu Dec 31 15:30:56 UTC 2015

On 23 Dec 2015 20:06, "Reza Motamedi" <motamedi at cs.uoregon.edu> wrote:
>
> All the costs of HW, SW, personnel, administration, and perhaps
transmission between colos (including remote peering, being waved to
another location, tethering) would be the same, right?

Usually yes but with transit you are paying for global
connectivity/reachability, for an extreme comparison, I only need to
exchange 50mbps of data with Facebook before they will peering with me
(last time I checked), I'm not going to put a 100Mbps link into a port that
can do 10G. So a direct transit feed is more commercially viable for me as
a consumer than private or public peering unless a particular business
demand can cover the cost risk of peering.

James.