Re: transit and peering costs projections

[Aaron Wendel <aaron () wholesaleinternet net>]

The issue in Houston is Dallas.

I reached out to 30-40 networks and 90% of them all said they just back haul to Dallas and have no interest in peering 
in Houston.  It’s a real hard town to get any traction in.  If you’re local and have some insight, I’d be super happy 
to talk to you. 

Aaron

> On Oct 14, 2023, at 8:48 PM, Tim Burke <tim () mid net> wrote:
>
> I would say that a 1Gbit IP transit in a carrier neutral DC can be had for a good bit less than $900 on the 
> wholesale market.
>
> Sadly, IXP’s are seemingly turning into a pay to play game, with rates almost costing as much as transit in many 
> cases after you factor in loop costs.
>
> For example, in the Houston market (one of the largest and fastest growing regions in the US!), we do not have a 
> major IX, so to get up to Dallas it’s several thousand for a 100g wave, plus several thousand for a 100g port on one 
> of those major IXes. Or, a better option, we can get a 100g flat internet transit for just a little bit more.
>
> Fortunately, for us as an eyeball network, there are a good number of major content networks that are allowing for 
> private peering in markets like Houston for just the cost of a cross connect and a QSFP if you’re in the right DC, 
> with Google and some others being the outliers.
>
> So for now, we'll keep paying for transit to get to the others (since it’s about as much as transporting IXP from 
> Dallas), and hoping someone at Google finally sees Houston as more than a third rate city hanging off of Dallas. Or… 
> someone finally brings a worthwhile IX to Houston that gets us more than peering to Kansas City. Yeah, I think the 
> former is more likely. 😊
>
> See y’all in San Diego this week,
> Tim
>
> > On Oct 14, 2023, at 18:04, Dave Taht <dave.taht () gmail com> wrote:
> >
> > This set of trendlines was very interesting. Unfortunately the data
> > stops in 2015. Does anyone have more recent data?
> >
> > https://drpeering.net/white-papers/Internet-Transit-Pricing-Historical-And-Projected.php
> >
> > I believe a gbit circuit that an ISP can resell still runs at about
> > $900 - $1.4k (?) in the usa? How about elsewhere?
> >
> > ...
> >
> > I am under the impression that many IXPs remain very successful,
> > states without them suffer, and I also find the concept of doing micro
> > IXPs at the city level, appealing, and now achievable with cheap gear.
> > Finer grained cross connects between telco and ISP and IXP would lower
> > latencies across town quite hugely...
> >
> > PS I hear ARIN is planning on dropping the price for, and bundling 3
> > BGP AS numbers at a time, as of the end of this year, also.
> >
> >
> >
> > --
> > Oct 30: https://netdevconf.info/0x17/news/the-maestro-and-the-music-bof.html
> > Dave Täht CSO, LibreQos