[186556] in North American Network Operators' Group

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Re: interconnection costs

daemon@ATHENA.MIT.EDU (Baldur Norddahl)
Tue Dec 22 16:02:56 2015

X-Original-To: nanog@nanog.org
In-Reply-To: <CACGuEhHMgP7WDGqOVGpX9L+KuihUMHBDwTAR78jhnsLD3itx9w@mail.gmail.com>
Date: Tue, 22 Dec 2015 22:02:51 +0100
From: Baldur Norddahl <baldur.norddahl@gmail.com>
To: nanog@nanog.org
Errors-To: nanog-bounces@nanog.org

There is only a xconnect expense if the peering happens at a third party
datacenter.

If it is a first party datacenter any xconnect fees can be considered part
of the peering price.

There is also the case where one party leases or builds a fiber to the
other party. The xconnect  always goes to the DC owner but there is usually
a choice of companies that can lease fiber. The transit provider might own
the fiber and provide the fiber lease and transit charge as one combined
offer.

We buy transit from the incumbent teleco. There is no xconnect because we
are in the building already with our gpon equipment and all cost is
regulated by the government. The regulator put the price of xconnect at $0
because frankly xconnect is a made up cost.

Regards

Baldur

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