Re: Peering and Network Cost

[Scott Whyte <swhyte () gmail com>]

On 4/15/15 07:28, Rod Beck wrote:
> 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.

You might find 
https://www.nanog.org/meetings/nanog53/presentations/Tuesday/valancius.pdf 
and the concomitant 
http://conferences.sigcomm.org/sigcomm/2011/papers/sigcomm/p194.pdf 
interesting.

-Scot

> I thank you in advance for any insights.
>
>
> Regards,
>
>
> - R.
>
>
> Roderick Beck Sales Director/Europe and the Americas Hibernia
> Networks
>
> This e-mail and any attachments thereto is intended only for use by
> the addressee(s) named herein and may be proprietary and/or legally
> privileged. If you are not the intended recipient of this e-mail, you
> are hereby notified that any dissemination, distribution or copying
> of this email, and any attachments thereto, without the prior written
> permission of the sender is strictly prohibited. If you receive this
> e-mail in error, please immediately telephone or e-mail the sender
> and permanently delete the original copy and any copy of this e-mail,
> and any printout thereof. All documents, contracts or agreements
> referred or attached to this e-mail are SUBJECT TO CONTRACT. The
> contents of an attachment to this e-mail may contain software viruses
> that could damage your own computer system. While Hibernia Networks
> has taken every reasonable precaution to minimize this risk, we
> cannot accept liability for any damage that you sustain as a result
> of software viruses. You should carry out your own virus checks
> before opening any attachment.