[119835] in North American Network Operators' Group
Re: Leaving public peering?
daemon@ATHENA.MIT.EDU (Mehmet Akcin)
Wed Dec 2 21:50:51 2009
From: Mehmet Akcin <mehmet@akcin.net>
In-Reply-To: <2CCD1680-B5AE-4777-902F-CCA19BBAF782@ianai.net>
Date: Wed, 2 Dec 2009 18:49:50 -0800
To: NANOG list <nanog@nanog.org>
Errors-To: nanog-bounces+nanog.discuss=bloom-picayune.mit.edu@nanog.org
On Dec 2, 2009, at 4:00 PM, Patrick W. Gilmore wrote:
> On Dec 2, 2009, at 4:48 PM, Jonas Frey wrote:
>=20
>> the DE-CIX pricing is now 500 Euro/month...since 1st october...see =
end
>> of that page.
>> Both DE-CIX and AMS-IX have decreased their pricing this year..almost =
at
>> the same time. I guess this is a move to stop company leaving public
>> exchanges...i have seen this trend, too.
>=20
> That is not why LINX lowers its prices. (I cannot say why AMS-IX =
lowers its prices.)
>=20
> LINX is a member-based organization. The member _own_ the exchange. =
They are paying themselves, and they only pay themselves as much as it =
costs to run the exchange. With more members, more scale, and advances =
in equipment, unit (i.e. port) costs go down.
>=20
> In a cost-recovery model, that means prices drop.
>=20
> LINX dropped prices mid-year 2009, and are dropping prices again in =
January 2009. AMS-IX dropped prices once in that time. DE-CIX actually =
raised its prices for many members, so they could lower their prices for =
others. Interesting strategy....
Yeah I have had researched multiple exchange points across the world in =
recent months and i can say, not only AMS-IX / DE-CIX but pretty much =
everyone out there is lowering the prices, it might be because of few =
reasons,=20
lifted regulations from governments regarding laying new fiber, and =
operations.. economic reasons, operational advantages vs cost... I am =
sure all Exchange management have considered those and started =
re-pricing their service offerings. The other thing people also notices =
that, you really never are able to get to a big network if you are a =
small one via exchange due to peering requirements of these big ISPs, so =
they rather go and get transit and don't worry about maintaining peering =
sessions with something+ number of peers, but simply 2-3 transit =
providers who have decently been chosen. Also with a good homework, you =
can practically achieve great results that way... still sad to see a lot =
departing from public exchange points..=20
Mehmet
