[109010] in North American Network Operators' Group

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Re: Sprint v. Cogent, some clarity & facts

daemon@ATHENA.MIT.EDU (Tore Anderson)
Mon Nov 3 10:45:09 2008

From: Tore Anderson <tore@linpro.no>
To: nanog@nanog.org
Date: Mon, 3 Nov 2008 16:41:11 +0100
In-Reply-To: <490F17AB.4080109@sprunk.org>
Cc: nanog@merit.edu
Errors-To: nanog-bounces@nanog.org

* Stephen Sprunk

> What it all comes down to is that the majority of eyeballs are on
> "residential" connections that are relatively expensive to provide
> but for which are sold at a relatively low price (often 1/10th as
> much per megabit of capacity).  Those eyeball ISPs cannot or will not
> charge their customers the full cost of "receiving" traffic so they
> want money from the more profitable content ISPs "sending" the
> traffic to offset their losses.

Another point worth mentioning is that the traffic is going to flow 
between those two ISPs _anyway_.  Therefore, in many cases the only 
ones to profit from them not reaching a peering agreement 
(settlement-free or not) is their upstream(s), who is probably 
delighted to be able to charge them both for the transit traffic.

Regards,
-- 
Tore Anderson


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