Leo, the DE-CIX pricing is now 500 Euro/month...since 1st october...see end of that page. Both DE-CIX and AMS-IX have decreased their pricing this year..almost at the same time. I guess this is a move to stop company leaving public exchanges...i have seen this trend, too.
Regards, Jonas On Wed, 2009-12-02 at 22:20, Leo Bicknell wrote: > In a message written on Wed, Dec 02, 2009 at 12:46:46PM -0800, Lasher, Donn > wrote: > > I realized that paid transit is down at almost obscene levels, but is > > that enough of a reason to increase hop-count, latencies, etc? > > > > Why disconnect from public mostly-free peering? > > Let's look at some economics. I'm going to pick on some folks here, > solely because they have prices online and because they are, I feel, > representative prices. > > http://www.cogentco.com/us/ > > "Home of the $4 Megabit!" So we have transit prices at $4 per megabit. > > http://www.de-cix.net/content/services/public-peering.html > > A 1GE link to the exchange is 1000 euro per month, which is $1505 USD at > the moment, let's call it $1500 for round numbers. > > Now, your 1GE exchange port really shouldn't be run past 60% or so, if > you want to provide good service. So it's really $1500 for 600Mbits, > or $2.50 per Megabit. > > If you're an ISP you look at this and go, humm, I take in $4 from my > customer, and hand $2.50 of it right back out to an exchange operator > if I use public peering, making the exchange 62% of my costs right up > front. On the other hand, if I choose wisely where I private peer I > can do it at places with a one-time fee for the cable, so there is > $0 in MRC. I have to buy a router port, sure, but it's also $0 MRC, > just a capital asset that can get written off over many years. > > This is the math with the $4 megabit advertised price. The halls at > Nanog are awash in $2 a megabit rumors if you have large enough commits > (say, a few 10GE's). Taking in $2 and paying the exchange operator > $2.50 of it....well, that's not so good. :) > > Transit prices have fallen enough that MRC's for switch ports, and > even MRC's for fiber runs (are any of you still in a colo that wants > $500 a month for a fiber run, I didn't think so) are eating up huge > chunks of the inbound revenue, and thus just don't make sense. > > Now, before someone points it out, yes, DECIX's rate per megabit is > lower on a 10GE and a second port, so if you can move 2 ports of 10GE of > traffic you can make it a lot cheaper. Also, Cogents $4 a megabit is > probably predicated on you being in the right location and having the > right commit, if you need a DS-3 in West Nowhere you'll pay a higher > rate, and that helps offset some of the costs. I've oversimplified, and > it's a very complex problem for most providers; however I know many are > looking at the fees for peering ports go from being in the noise to a > huge part of their cost structure and that doesn't work.