Connecting rural providers: ethernet to large city or nearby transit

Jean-Francois Mezei jfmezei_nanog at
Wed Apr 13 04:51:38 UTC 2016

Generic question.

Say you have a municipal provider in small town where the municipality
won the subsidy over the incumbent to deploy broadband.

The easiest is for the town's ISP to buy transit from the incumbent. But
incumbent will not be interested in offering competitive pricing.

As a sanity check, would a rural ISP come out ahead getting an ethernet
link to large city where cheaper transit is available as well as peering
to offload a lot of traffic,

or would buying transit at higher price locally end up being better ?

Is the difference between the two small, or orders of magnitudes cheaper
to go one way or the other ?

context: in order to provide affordable backhaul to towns, the CRTC
*might consider regulation. The Chairman used a key word today "market
failure" indicating they are ready to listen to arguments on this.

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