[70898] in North American Network Operators' Group

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RE: best effort has economic problems

daemon@ATHENA.MIT.EDU (Neil J. McRae)
Mon May 31 10:46:36 2004

From: "Neil J. McRae" <neil@domino.org>
To: "'Stephen Sprunk'" <stephen@sprunk.org>,
	"'Gordon Cook'" <cook@cookreport.com>
Cc: "'North American Noise and Off-topic Gripes'" <nanog@merit.edu>
Date: Mon, 31 May 2004 15:45:43 +0100
In-Reply-To: <016801c44675$88468f20$6401a8c0@stephen>
Errors-To: owner-nanog-outgoing@merit.edu



> This problem has little to do with BE vs. QoS.  It's a 
> temporary market imbalance caused by providers willing to 
> sell service for less than cost; in the absence of external 
> factors, eventually enough providers will go under for prices 
> to rise back above cost.

I've seen compelling evidence over the past two years that clearly shows
some carriers who have sold well below cost who then also went into chapter
11.
Unfortunately these zombies don't see to want to die! :-) Selling below
cost is one of many issues. Also Internet access is one area of most
organisations
communications needs.

I also then have discussions, with some of the people listed on the 
acknowledgements page of this "article", that have done things because 
quote "it costs too much" when the reality is that its cost them nothing.

 


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