[128536] in North American Network Operators' Group

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Re: Cost of transit and options in APAC

daemon@ATHENA.MIT.EDU (Benson Schliesser)
Wed Aug 11 18:41:27 2010

From: Benson Schliesser <bensons@queuefull.net>
In-Reply-To: <4C6320FA.80901@bogus.com>
Date: Wed, 11 Aug 2010 17:41:16 -0500
To: Joel Jaeggli <joelja@bogus.com>, Franck Martin <franck@genius.com>,
	nanog <nanog@merit.edu>
Errors-To: nanog-bounces+nanog.discuss=bloom-picayune.mit.edu@nanog.org


On 11 Aug 10, at 5:15 PM, Joel Jaeggli wrote:

>> Obviously I can't speak for the providers in question, but I'd guess
>> that the cost for transit in AP is strongly related to the cost of
>> long-haul transport.
>=20
> Start with something that can be effectively isolated from the
> transpacific path.
>=20
> Gotten a quote for a 1Gbe or 10Gbe between two cities in India =
recently?

That could be useful.  Sadly, I have no first-hand knowledge of these =
costs.  How does in-country transport compare to trans-Pacific transport =
cost? (i.e. on a per Mbps per kilometer or similar metric)  I assume =
it's cheaper in-country / in-region compared to trans-oceanic.  Is this =
true?

Once that's known, I'd also look at the opposite: excluding any =
last-mile transport costs, what is the price per Mbps for transit =
service?  That transit price has to accommodate both the local/in-region =
transport as well as trans-oceanic transport costs borne by the =
provider. If the locale of traffic is shifting, then the provider's =
transport costs are also shifting from one category to another.

My advice to anybody looking to buy AP regional transit, assuming that =
trans-oceanic bandwidth is more expensive than regional bandwidth, is to =
negotiate a lower price in exchange for only in-region routes.  If my =
assumption about bandwidth costs is backwards, then you're out of luck.  =
(Maybe we need lower taxes, higher bribes, or more competition..?)

Cheers,
-Benson



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