[73179] in North American Network Operators' Group
RE: Current street prices for US Internet Transit
daemon@ATHENA.MIT.EDU (William B. Norton)
Mon Aug 16 13:17:41 2004
Date: Mon, 16 Aug 2004 10:16:36 -0700
To: "Michel Py" <michel@arneill-py.sacramento.ca.us>,
"William B. Norton" <wbn@equinix.com>, <nanog@merit.edu>
From: "William B. Norton" <wbn@equinix.com>
In-Reply-To: <DD7FE473A8C3C245ADA2A2FE1709D90B0DB33E@server2003.arneill-
py.sacramento.ca.us>
Errors-To: owner-nanog-outgoing@merit.edu
Thanks to all who replied with data, and yes, the pricing was all 95th=20
percentile.
Wow - the U.S. has an amazingly unhealthy and cut throat transit market in=
=20
2004.
About 20 folks responded, most saying the Peering Coordinator quotes=20
(below) sounded about right.
> > ISP Transit Commits and Prices
>=20
>---------------------------------------------------------------------------=
------------------------------------------
> > if you commit to 1M per month you will pay about $125/Mbps
> > if you commit to 10M per month you will pay about $ 60/Mbps
> > if you commit to 100M per month you will pay about $45/Mbps
> > if you commit to 1000M per month you will pay about $30/Mbps
A couple people said these prices were TOO HIGH, particularly for the gig=20
commit, although several multi-gig commits came in tiered; for example,=20
$45/Mbps for 1G commit, $35 for 2G, etc. on down to $21 for 8G=20
commit. (One Tier 2 ISP said that they sold 1G commit as low as $18/Mbps,=
=20
presumably simply reselling Tier 1 BW so the difference may be negligible.)
Three said that these transit prices were TOO LOW, in one case they paid=20
about double these numbers. It was interesting that these three were a=20
content company, a cable company and a DSL company, folks who traditionally=
=20
don't sell transit. Maybe they are in a retail market for transit, while=20
everyone else buys in the wholesale market.
Since so many said these prices are about right, I'll use them for the=20
Peering versus Transit analysis. A couple people pointed to the 10M commit=
=20
being closer to $80/Mbps, so that may be an adjustment.
Given the adjustment, I thought you might be interested in how the U.S.=20
transit prices compare against a handful of other Peering Ecosystems:
The Cost of Internet Transit in=85
Commit AU SG JP HK USA
1 Mbps $720 $625 $490 $185 $125
10 Mbps $410 $350 $150 $100 $80
100 Mbps $325 $210 $110 $80 $45
1000 Mbps $305 $115 $50 $50 $30
Round numbers anyway FWIW. Hope this helps. I feel bad for those selling=20
transit these days - at these prices, margins must be mighty thin, and I=20
suspect we will see some more turbulence in the industry.
Bill
