nanog mailing list archives

Re: Sprint v. Cogent, some clarity & facts


From: Tore Anderson <tore () linpro no>
Date: Mon, 3 Nov 2008 16:41:11 +0100

* Stephen Sprunk

What it all comes down to is that the majority of eyeballs are on
"residential" connections that are relatively expensive to provide
but for which are sold at a relatively low price (often 1/10th as
much per megabit of capacity).  Those eyeball ISPs cannot or will not
charge their customers the full cost of "receiving" traffic so they
want money from the more profitable content ISPs "sending" the
traffic to offset their losses.

Another point worth mentioning is that the traffic is going to flow 
between those two ISPs _anyway_.  Therefore, in many cases the only 
ones to profit from them not reaching a peering agreement 
(settlement-free or not) is their upstream(s), who is probably 
delighted to be able to charge them both for the transit traffic.

Regards,
-- 
Tore Anderson


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