Peering and Network Cost

[Rod Beck <Rod.Beck () hibernianetworks com>]

Hi,


As you all know, transit costs in the wholesale market today a few percent of what it did in 2000. I assume that most 
of that decline is due to a modified version of Moore's Law (I don't believe optics costs decline 50% every 18 months) 
and the advent of maverick players like Cogent that broker cozy oligopoly pricing.


But I also wondering whether the advent of widespread peering (promiscuous?) among the Tier 2 players (buy transit and 
peer) has played a role. In 2000 peering was still an exclusive club and in contrast today Tier 2 players often have 
hundreds of peers. Peering should reduce costs and also demand in the wholesale IP market. Supply increases and demand 
falls.


I thank you in advance for any insights.


Regards,


- R.


Roderick Beck
Sales Director/Europe and the Americas
Hibernia Networks

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