if you think about it for a moment then one should realize that ....
There is no such thing as IP Transit in the Core of the Internet..
It's all peering arrangements settlement free or paid
All providers sell IP Transit, were basing there cost on
Cost of delivery + Market perception Markup.(i.e what that market will
sustain).
There is a very interesting thing going on....
Market Perception markup is becoming closer to 0
& Cost of deliver is also having a very interesting effect due to
increase in demand.
If you look at cost of routers to handle large amount of ip traffic you will
see that they are very very expensive (going up)
however if you look at the cost of switches and optics being used for L2
transport, this is going down and down...
This is the reason why, when one goes to ask for IP transit pricing from
some of the carrier, they come back with a hefty price tag..
(cause you are paying for them to upgrade their hardware and pipes)
If you ask them for l2 transport, then the quotes can be very reasonable. if
they have upgraded that section of their network... otherwise you will again be
paying for their upgrades.
Now if you are able to latch-on to someone who has recently upgraded their
route/section to a 100g transport, then getting pricing for 10g transport gets
quoted out at a very different level.
pickup IP BW at a major datacenter is becoming less and less expensive, simply
because these folks have already invested money in their large routing platform
so every sale is pretty much an incremental sale, with the $ dropping to the
bottom line (after sales & marketing expenses).
I am talking about competitive carriers and not the likes of ATT...
:)
Regards
Faisal Imtiaz
Snappy Internet & Telecom
7266 SW 48 Street
Miami, FL 33155
Tel: 305 663 5518 x 232
Help-desk: (305)663-5518 Option 2 or Email: supp...@snappytelecom.net
----- Original Message -----
> From: "Chuck McCown" <ch...@wbmfg.com>
> To: af@afmug.com
> Sent: Sunday, September 11, 2016 7:52:00 PM
> Subject: Re: [AFMUG] Upstream, going beyond 1 gig
> Here is a repeat of my prediction/forecast/prophecy:
>
> BW cost will do what long distance rates did.
>
> Remember the word asymptote from math class?
> Or limits in calculus. The trend is toward zero.
> It will be just the port charge you will pay in the not too distant future.
>
> - and for some - the future is now...
>
> -----Original Message-----
> From: Seth Mattinen
> Sent: Sunday, September 11, 2016 5:48 PM
> To: af@afmug.com
> Subject: Re: [AFMUG] Upstream, going beyond 1 gig
>
> On 9/11/16 4:43 PM, Mike Hammett wrote:
>> I've got a port better than that. ;-)
>>
>
>
> I'm ecstatic to see cents per Mbps pricing considering what the status
> quo where I am likes to charge. The cable co wouldn't even give me
> pricing on a 10G unless I'd pre-commit to 5 years - thanks but I'll
> pass. It's been a long time coming.
>
> ~Seth
