Re: transit and peering costs projections

[Michael Thomas <mike () mtcc com>]

On 10/15/23 8:33 PM, Matthew Petach wrote:
>  I think we often forget just how much of a massive inversion the
> communications industry has undergone; back in the 80s, when
> I started working in networking, everything was DS0 voice channels,
> and data was just a strange side business that nobody in the telcos
> really understood or wanted to sell to.  At the time, the volume of money
> being raked in from those DS0/VGE channels was mammoth compared
> to the data networking side; we weren't even a rounding error.  But as 
> the
> roles reversed and the pyramid inverted, the data networking costs didn't
> rise to meet the voice costs (no matter how hard the telcos tried to push
> VGE-mileage-based pricing models!
Haha, when I was at Cisco in the late 90's and was working on VoIP stuff 
we were working with Sprint trying to get them onboard for a residential 
voice project. They were really insistent on using AAL2 to conserve 
bandwidth. I told them at the time that the bandwidth for voice was 
going to be insignificant and it wasn't a big deal that RTP wasn't as 
efficient. They looked at me like i had leprosy with body parts falling 
off. Like the next month it was announced that data had surpassed voice 
for the first time. We didn't get the contract, fwiw. But they never 
launched anything either. Was there ever any significant deployment of 
AAL2?

Mike