[133744] in North American Network Operators' Group
Re: Some truth about Comcast - WikiLeaks style
daemon@ATHENA.MIT.EDU (Jared Mauch)
Thu Dec 16 14:58:44 2010
From: Jared Mauch <jared@puck.nether.net>
In-Reply-To: <8C26A4FDAE599041A13EB499117D3C286B2B3123@ex-mb-1.corp.atlasnetworks.us>
Date: Thu, 16 Dec 2010 14:58:37 -0500
To: Nathan Eisenberg <nathan@atlasnetworks.us>
Cc: NANOG Operators' Group <nanog@nanog.org>
Errors-To: nanog-bounces+nanog.discuss=bloom-picayune.mit.edu@nanog.org
On Dec 16, 2010, at 2:24 PM, Nathan Eisenberg wrote:
> The idea of buying colocation from a last-mile ISP to reduce that =
last-mile ISP's costs seems (at first glance) to be a hysterically =
unfair proposition - though it seems that incumbent ISPs may have great =
enough leverage to extract this revenue if they really want to. Or am I =
off my rocker?
>=20
> What is in the best interests of the customer?
I think the balance here is:
If you can buy wholesale IP for $X/meg from a generic provider that =
delivers the bits to all destinations=20
vs
Buying local IP for $Y (where Y>X) in the local network access, you will =
pay the $X rate. If there were some price advantage for the CDNs, I =
doubt the discussion would be happening at all. Some people call this =
"dumping", others call it market forces.
I'm not sure debating the business merits here make sense, as I'm =
neither comcast nor a CDN, and all my data is based on similar =
'backdoor' or 'whisper' comments over many years. I seriously doubt the =
CDNs care about much other than the price:quality ratio. Clearly what =
happened here was a business decision that has been dragged out too long =
in public.
If you can't figure that out from this thread yet, you may not "get it" =
even if you saw an xls telling you the same thing.
Most of the companies involved are publicly traded, read their 10-K's =
and extrapolate the costs and pressures. Either the costs involved here =
represent enough to be material and something to be noted in a filing at =
edgar, or they are people fighting over loose change.
- Jared=
