[49465] in North American Network Operators' Group
Re: Sprint peering policy
daemon@ATHENA.MIT.EDU (Robert A. Hayden)
Mon Jul 1 19:20:46 2002
Date: Mon, 1 Jul 2002 18:18:42 -0500 (CDT)
From: "Robert A. Hayden" <rhayden@geek.net>
To: Leo Bicknell <bicknell@ufp.org>
Cc: <nanog@merit.edu>
In-Reply-To: <20020701223010.GA22582@ussenterprise.ufp.org>
Errors-To: owner-nanog-outgoing@merit.edu
On Mon, 1 Jul 2002, Leo Bicknell wrote:
> There is no way for a company to price transit below their peering
> costs and make money. So the question becomes, is $50/meg too low.
> I believe so. I think that the companies selling at $50 a meg are
> in a desperate attempt to get revenue in the door, even if it comes
> in at a loss. If you've paid $70/meg for a peering connection a
> loss of $20 is better than not selling, and having a loss of $70.
Reminds me of something a former boss told me. "We lose money on every
customer, but we make it up in volume." :-)
