[179498] in North American Network Operators' Group
Peering and Network Cost
daemon@ATHENA.MIT.EDU (Rod Beck)
Wed Apr 15 15:17:51 2015
X-Original-To: nanog@nanog.org
From: Rod Beck <Rod.Beck@hibernianetworks.com>
To: "nanog@nanog.org" <nanog@nanog.org>
Date: Wed, 15 Apr 2015 14:28:34 +0000
Errors-To: nanog-bounces@nanog.org
Hi,
As you all know, transit costs in the wholesale market today a few percent =
of what it did in 2000. I assume that most of that decline is due to a modi=
fied version of Moore's Law (I don't believe optics costs decline 50% every=
18 months) and the advent of maverick players like Cogent that broker cozy=
oligopoly pricing.
But I also wondering whether the advent of widespread peering (promiscuous?=
) among the Tier 2 players (buy transit and peer) has played a role. In 200=
0 peering was still an exclusive club and in contrast today Tier 2 players =
often have hundreds of peers. Peering should reduce costs and also demand i=
n the wholesale IP market. Supply increases and demand falls.
I thank you in advance for any insights.
Regards,
- R.
Roderick Beck
Sales Director/Europe and the Americas
Hibernia Networks
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