nanog mailing list archives
Re: Backbone IP network Economics - peering and transit
From: Mikael Abrahamsson <swmike () swm pp se>
Date: Tue, 20 Apr 2004 07:23:25 +0200 (CEST)
On Mon, 19 Apr 2004, Gordon Cook wrote:
Peering? Who needs peering if transit can be had for $20 per megabit per second?
Isnt the companies still "doped" from the bubble in 2000-2001? Price example: You have three cities. Two 12400 GSRs per city, and OC192 to connect them, that's a total of 12 $150k ($225k minus rebate) cards and let's say $100k per router for customer facing interfaces etc (unrealistically low). If you want to pay this investment back over three years and let's say you'll push 10gigs of customer paying traffic (because of redundancy etc). You end up with close to $10 per megabit in just equipment fee to cisco so you have half of the money left from the initally stated price of $20 per megabit, this for a small inter-metro network. Since Cisco basically hasnt lowered the price per megabit on any interface cards for the GSR platform, it cannot be used apart from doing very long distance transfer via DWDM where the links are full of revenue-generating traffic all the time. Juniper is even more expensive. We like these platforms, they're very stable and well performing, but I just cannot see where they can be justified investing in at todays megabit price. -- Mikael Abrahamsson email: swmike () swm pp se
Current thread:
- Backbone IP network Economics - peering and transit Gordon Cook (Apr 19)
- Re: Backbone IP network Economics - peering and transit Mikael Abrahamsson (Apr 19)
- <Possible follow-ups>
- RE: Backbone IP network Economics - peering and transit Michel Py (Apr 19)
- Re: Backbone IP network Economics - peering and transit Patrick W . Gilmore (Apr 19)
- Re: Backbone IP network Economics - peering and transit Paul Vixie (Apr 19)
- Re: Backbone IP network Economics - peering and transit vijay gill (Apr 20)
- RE: Backbone IP network Economics - peering and transit Michel Py (Apr 19)
- Re: Backbone IP network Economics - peering and transit Daniel Golding (Apr 20)
- Re: Backbone IP network Economics - peering and transit Patrick W . Gilmore (Apr 20)
- TCP Vulnerability makes case for authenticated BGP tad pedley (Apr 20)
- Re: TCP Vulnerability makes case for authenticated BGP Pekka Savola (Apr 20)
- Re: Backbone IP network Economics - peering and transit Stephen J. Wilcox (Apr 20)
- Re: Backbone IP network Economics - peering and transit Daniel Golding (Apr 20)