Re: Backbone IP network Economics - peering and transit

[Patrick W.Gilmore <patrick () ianai net>]

On Apr 19, 2004, at 10:45 PM, Michel Py wrote:

> > Peering?  Who needs peering if transit can be
> > had for $20 per megabit per second?
>
> The smaller guys that don't buy transit buy the gigabit.

Then their traffic will not justify 1000s of $$ per month for lines, 
racks, and NAP connection.

Unless they have cheap access to a free NAP (TorIX, SIX, etc.), 
transit, even at higher prices, is probably be the best / cheapest way 
to reach the Internet.

OTOH, for the guys who do buy a lot of traffic, a NAP connection might 
be worth it.  For instance, if you have a node in 151 Front Street, it 
would be silly not to connect to the TorIX for a one-time fee and send 
free traffic to a lot of good eyeballs in Canada - not to mention the 
performance benefits.  The same might be true of an PAIX / Equinix 
location.

Saying "who needs [foo]" is not a good question without supplying the 
other variables.  It all depends on your traffic mix, locations, deals 
you can make with the NAPs, networks who will peer with you, etc.

--
TTFN,
patrick