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In-Reply-To: <20051006064734.GW1332@overlord.e-gerbil.net> Cc: "Patrick W. Gilmore" <patrick@ianai.net> From: "Patrick W. Gilmore" <patrick@ianai.net> Date: Thu, 6 Oct 2005 13:59:01 -0400 To: nanog@nanog.org Errors-To: owner-nanog@merit.edu On Oct 6, 2005, at 2:47 AM, Richard A Steenbergen wrote: > Inbound traffic doesn't cost them anything? That old adage only > applies to > end user transit purchasers who have doing extra outbound and thus > have > "free inbound" under the "higher of in or out" billing. For folks > operating an actual network, the bits use the same resources as > traffic in > the opposite direction, and thus "cost" the same. The only reason > Cogent > gives out free or absurdly underpriced inbound transit is ratios. You are mistaken. If I sent 100 Gbps outbound and 20 inbound, I can sell 40-60 Gbps of additional inbound for FAR, FAR less than 40-60 Gbps of additional outbound. Zero cost? Probably not. Trivial cost? Possibly, depends on network. > I know folks who are willing to give away all manner of things, > inbound > and outbound, for free or low cost, because they have "excess > capacity" > that they're already paying for and nothing better to do with it. If > you're desperate and you're willing to sacrifice long term > marketing for > short term cash it can be a cute technique, but to quote Vijay, "it > does > not scale". Besides, if anyone is depeering Cogent now because of > their > disruptive pricing in the market, they're a couple years late. > Speculate > all you like, but I suspect there is more to it than that. It doesn't have to scale. I'm perfectly willing to sell $100K worth of services for $1K worth of cost, knowing I cannot sell $101K because "it does not scale". And anyone who isn't is probably not doing good business. But I do agree with you on the "couple years late" thing. Putting Cogent out of business will _not_ make prices go up. (And I'm not even sure this will put them out of biz.) In fact, Cogent is not the "lowest cost provider" any more - at least not for bit pushers. -- TTFN, patrick
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