[5794] in North American Network Operators' Group
Re: Provider credibility - does it matter? was Re: Inter-provider
daemon@ATHENA.MIT.EDU (Peter Lothberg)
Sun Oct 27 02:58:02 1996
Date: Sun, 27 Oct 96 2:39:24 MET
From: Peter Lothberg <roll@Stupi.SE>
To: Michael Dillon <michael@memra.com>
Cc: nanog@merit.edu
In-Reply-To: Your message of Fri, 25 Oct 1996 10:32:30 -0700 (PDT)
> I would say that if transatlantic lines are mostly ordered and paid for by
> European companies that you are probably correct. But part of the reason
> is that European government run PTT's charge horrendously high rates for
> international circuits.
It's more expensive to install and operate a fiber in an ocean than
along the railway-tracks.
Regardless of tariffs, 4000 miles of transatlantic OC-48 is more
expensive than 4000 miles of land-line OC-48.
So, if both sides agrees on the 'benefit ratio' add the costs and
divide the sum according to the ratio.
-Peter
(Sorry to repeat myself..)