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

Wed Sep 19 08:51:59 UTC 2018

Christopher Morrow wrote:

> Whether it actually 'costs' that much to pull a x-connect and maintain
> that x-connect is probably not as important as 'gosh it's really hard
> to be 'close' to  <isreali city>' right? which is what they are
> capitalizing on here.> 
> Hank, how far away is the next closest large network metro ? Riyad?
> Rome? Sofia?... I mean, it's all 'far' from 'isreal' (or really any
> part of the world)  to the next decent network POP :(>  

I'm not sure if Israelis can buy anything from Riyadh, though. It's
usually the case that Israelis and their neighbors can't do business
with each other, either because of their neighbor's laws or Israel's
laws, or both.
So your Tel Aviv data center has a much smaller market and can't benefit
from economies of scale like more developed markets such as United
States and western Europe which sell globally.
I agree that capitalism lets you charge whatever you can get but healthy
capitalism gives you competition. The *big* question: If prices are so
high in Israel, why don't competitors enter this market when it's 1)
pretty much commodity and 2) booming globally?
--S.C.
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