Re: Zayo zColo Xcon Pricing

[Jim Shankland <nanog () shankland org>]

On 3/7/18 9:00 AM, Ian Mock wrote:
> Everything is negotiable. NRC on a cross-connect is ridiculous. The cost to
> run should be made up with the amount they're charging monthly. I wouldn't
> pay more than $200/mo for copper.
Actually, as a reflection of the provider's cost, NRC for a 
cross-connect makes more sense than a recurring cost. After all, there's 
labor involved in setting up the cross-connect, but once it's in, it 
pretty much just sits there.

The fallacy here, though, is assuming that rational pricing bears some 
relation to the vendor's cost to provide the good or service. Actual 
price is based on what the market will bear. Sharing pricing information 
on NANOG likely helps consumers by increasing market transparency (which 
is why vendors love to block such sharing via NDA). Much as I sympathize 
with the sentiment, though, "ridiculous" is meaningless in this context. 
It may even be construed as positive, as in: "Awesome, we're making 
ridiculous profits on all these copper cross-connects." :-)

Jim