Massive Price Increase for X-conns at Telehouse Chelsea, NYC

Tue Sep 18 15:59:00 UTC 2018

On Tue Sep 18, 2018 at 08:19:35AM +0000, Scott Christopher wrote:
> Hank Nussbacher wrote:
> 
> > On 18/09/2018 08:02, Christopher Morrow wrote: 
> >> 
> >> it's funny/possible that x-connect costs affect where peering appears
> >> in the landscape, right?> Not this time.  Just price gouging since moving a number of cabinets
> > to a different location is a nightmare.
> Sure - but at least they have competitors.
> 
> Look at prices from telecoms like China's CN1. Would you rather have
> prices set by  government-controlled monopolies, or by private
> competition?
> --S.C.

It's more like a loose cartel with some leading to see
how far they can push it and the rest following in step. As long
as they don't go too fast nobody will see a large enough difference
to be worth changing location.

Equinix were a leader in bringing this to the UK, they have said they
want to get the UK charges to US levels (so >10x increase still to
come). US pricing already matches metro waves so we face paying
twice the cost of the wave to the DCs for the short interconnects.

Telehouse (UK) was one of the good ones with no MRC, the risers got
full due to the popularity of no MRCs (they sold out of rack
space repeatedly too). They started charging but I can't attribute
the growing empty rack space to that, more likely AWS is the cause of
that and a driver for increasing xcon fees to make up revenue.

brandon 