[94150] in North American Network Operators' Group

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Re: Internet Video: The Next Wave of Massive Disruption to the US Peering Ecosystem (v1.2)

daemon@ATHENA.MIT.EDU (Daniel Golding)
Wed Jan 10 16:53:02 2007

In-Reply-To: <9856c35a0701100933q70433537tb53ed16020dba2e3@mail.gmail.com>
Cc: "Brandon Butterworth" <brandon@rd.bbc.co.uk>, nanog@merit.edu
From: Daniel Golding <dgolding@t1r.com>
Date: Wed, 10 Jan 2007 16:52:05 -0500
To: bill.norton@gmail.com
Errors-To: owner-nanog@merit.edu



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On Jan 10, 2007, at 12:33 PM, William B. Norton wrote:

>
> Why are folks turning away 10G orders?
>

Some of this depends on how much you are willing to pay. The issue is  
as much 10G orders at today's transit prices as it is the capacity.  
We're used to paying less per unit for greater capacity, but when  
we're asking networks to sell capacity in chunks as large as the ones  
they use to build their backbones, that may simply not work.

One other issue is that willingness to sell 10G is one vital  
competitive distinguisher in an otherwise largely commodity transit  
market. There have been rumors that older legacy carriers wish to  
punish more agile competitors for daring to "steal" 10G customers  
away from them, in spite of the fact that those older carriers have  
lots of trouble delivering 10G.

- Dan
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<HTML><BODY style=3D"word-wrap: break-word; -khtml-nbsp-mode: space; =
-khtml-line-break: after-white-space; "><DIV><SPAN =
class=3D"Apple-style-span" style=3D"border-collapse: separate; =
border-spacing: 0px 0px; color: rgb(0, 0, 0); font-family: Helvetica; =
font-size: 12px; font-style: normal; font-variant: normal; font-weight: =
normal; letter-spacing: normal; line-height: normal; text-align: auto; =
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"></SPAN></DIV><BR><DIV><DIV>On Jan 10, 2007, at 12:33 PM, William B. =
Norton wrote:</DIV><BR class=3D"Apple-interchange-newline"><BLOCKQUOTE =
type=3D"cite"><DIV style=3D"margin-top: 0px; margin-right: 0px; =
margin-bottom: 0px; margin-left: 0px; min-height: 14px; "><BR></DIV><DIV =
style=3D"margin-top: 0px; margin-right: 0px; margin-bottom: 0px; =
margin-left: 0px; ">Why are folks turning away 10G orders?</DIV><DIV =
style=3D"margin-top: 0px; margin-right: 0px; margin-bottom: 0px; =
margin-left: 0px; min-height: 14px; =
"><BR></DIV></BLOCKQUOTE></DIV><BR><DIV>Some of this depends on how much =
you are willing to pay. The issue is as much 10G orders at today's =
transit prices as it is the capacity. We're used to paying less per unit =
for greater capacity, but when we're asking networks to sell capacity in =
chunks as large as the ones they use to build their backbones, that may =
simply not work.=A0</DIV><DIV><BR =
class=3D"khtml-block-placeholder"></DIV><DIV>One other issue is that =
willingness to sell 10G is one vital competitive distinguisher in an =
otherwise largely commodity transit market. There have been rumors that =
older legacy carriers wish to punish more agile competitors for daring =
to "steal" 10G customers away from them, in spite of the fact that those =
older carriers have lots of trouble delivering 10G.</DIV><DIV><BR =
class=3D"khtml-block-placeholder"></DIV><DIV>- Dan</DIV></BODY></HTML>=

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