nanog mailing list archives

Re: Sprint peering policy


From: alex () yuriev com
Date: Tue, 2 Jul 2002 10:12:49 -0400 (EDT)



I think this is putting the cart before the horse.

We were getting upgraded bandwidth capabilities,
fiber put in the ground, etc from traditional Telcos
prior to the rise of the Internet; they were finding cheaper
ways to run phone service around.

This is totally incorrect. Ask anyone who had been in this business from the
beginning of nineties, not late nineties. Telcos, while upgrading their
systems, happily pointed at the PUC filings and sold you DS1 that went two
blocks for $700 per month, that being inside a city.

The rise of the Internet as a telecom bandwidth demand
driver attracted the attention of investment bankers
and capital, which then became somewhat of a set of
complex feedback loops (capital going into all sorts
of internet industries, infrastructure, etc, partly
because it appeared to be good business and partly
because of hype).  The result was that speculation
and hype drove overcapacity.

This again is incorrect. The rise of content attracted investment bankers. 

Before anyone had invested serious money in any of
the internet infrastructure companies, people were
building out 10 megabit, T3 backbones and were talking
to telco gear providers about what it would take to
do 155 megabit and 622 megabit backbones and so on
and so on.

This is again incorrect. The people that you are talking about were UUNET
and MCI, and we are talking 1994.

It was clear to those of us in the late
80s and early 90s that if demand kept pulling, we needed
to keep creating bandwidth. 

There had not been demand in 80. Neither had there been demand in the
beginning of 1990s.

But in no way can you claim that it took a terabuck
in capital push to make it happen.  Demand pull was
fully operational and working just fine before
ISPs started being snapped up by phone companies
and visa versa, and the huge money came into play.

Yes I can. It did take terrabucks to get this industry rolling.

Hype might have been lower and growth somewhat
slower, but I can easily see the set of people
who were building out backbones with T-1s and 
the early fiber links having grown them up to
networks capable of today's traffic.  

Are you talking about Net99 here?

Alex


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