[69962] in North American Network Operators' Group
Re: Backbone IP network Economics - peering and transit
daemon@ATHENA.MIT.EDU (alex@yuriev.com)
Thu Apr 22 15:03:51 2004
Date: Thu, 22 Apr 2004 14:45:36 -0400
From: alex@yuriev.com
To: nanog@merit.edu
In-Reply-To: <DD7FE473A8C3C245ADA2A2FE1709D90B0DB0C8@server2003.arneill-py.sacramento.ca.us>
Errors-To: owner-nanog-outgoing@merit.edu
> >> where's the "lot of cost"?
>
> > Stephen J. Wilcox
> > This is private vs public..
>
> Even if it's private, and assuming that you're clever enough not to peer
> for a modem's worth of traffic, the cost is a no-brainer, IMHO.
> Someone checks my math please:
> At $20 per megabit for transit (which I find very low, but let's go for
> it anyway) a GE link for peering with an average use of 10% means $24000
> per year saved; pays for the xconnect.
If you have a gig of traffic to peer out to a single AS, you need quite a
bit of infrastructure to support the peering and that infrastructure does
not come cheap.
Alex
