[5738] in North American Network Operators' Group
Re: Provider credibility - does it matter? was Re: Inter-provider relations
daemon@ATHENA.MIT.EDU (Barry Raveendran Greene)
Fri Oct 25 23:18:42 1996
From: Barry Raveendran Greene <barry@singnet.com.sg>
To: "'Jim Dixon'" <jdd@vbc.net>, "'Jeremy Porter'" <jerry@fc.net>
Cc: "'Robert E. Seastrom'" <rs@bifrost.seastrom.com>,
"'azeem@dial.pipex.com'" <azeem@dial.pipex.com>,
"'avg@quake.net'" <avg@quake.net>,
"'nanog@merit.edu'" <nanog@merit.edu>
Date: Sat, 26 Oct 1996 11:11:09 +0800
Jeremy Porter wrote:
>The Economist's model is incomplete, however I really doubt
>it could be argued that Europe subsidizes the US Internet.
>A large reason the cost of international leased lines are so
>high is due to projectionist tariffs in international Telecom.
>I understand it is cheaper to buy a leased line from the
>us to Europe than the other way around. =20
OK. So take the US 1/2 circuit costs for both halves of a Atlantic =
circuit. A T1 would cost 5 - 6 time more across the Atlantic vs 10 times =
the cost if it was 1/2 US 1/2 Euro-Telco. If the circuit was across the =
Pacific, and you used the US price for both 1/2s then a T1 would be 7 - =
8 time more than a T1 in the US.=20
Yes, Jeremy. You cannot escape the fact that the rest of the world =
subsidizes US ISP who access the Internet around the world. The =
economics are skewed. A customer in a ISP in country X. would pay the =
realistic charges for International access. A customer in a ISP in the =
US pay domestic access for full international connectivity.
That's reality.=20
Barry
--
Barry Raveendran Greene | || || |
Senior Consulting Engineering | || || |
Singapore | |||| |||| |
tel: +65 738-5535 ext 235 | ..:||||||:..:||||||:.. |
e-mail: bgreene@cisco.com | c i s c o S y s t e m s |
