This also has been discussed...

http://drpeering.net/AskDrPeering/blog/articles/Ask_DrPeering/Entries/2013/5/24_The_Battle_Continues__Peering_vs._Transit.html


BTW, the original article was done a few years ago, and last updated 2010 (as 
per article itself).

We in the US often forget that the article was written from a Global 
Perspective, and the cost structure is much different else where. Additionally, 
lots of folks also may have LH transport costs.

Now if you are wondering 'why would someone spend that kind of money just for a 
public peering connection ?' then go and take a look at the membership list for 
the European Exchanges  AMS-IX, DE-CIX etc.... the sheer number of participants 
makes the largest of the US Peering Exchanges pale.....

Needless to say, if you scan thru the list of participants, one can easily see 
that the WORLD peers at the European Exchanges.....

To truly appreciate this, one need to have a global perspective.

:)


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: [email protected] 

----- Original Message -----
> From: "Paul Stewart" <[email protected]>
> To: [email protected]
> Sent: Sunday, July 12, 2015 7:07:35 PM
> Subject: Re: [AFMUG] Anyone heard of GTT
> 
> Yeah hence my point about the numbers being out of whack quite a bit ... the
> point he's making is correct overall though....
> 
> "If you assume the cost of public peering is $10,000/month ($2500 for a 10G
> public peering port and $7500 for colo, power, transport, equipment, etc.),"
> 
> $2500 for 10G port - yeah, most expensive port I've seen on the major IXP's
> after contract negotiations has been around $1200/month for 10G.
> 
> $7500 for colocation is qualified as cost recovery for equipment so that's
> pretty "open" and could be justified.  If you looked at $350k in equipment
> (which is about right for some companies) to build a peering POP and
> amortized that out over 5 years and added in space/power it's not far off
> really.  And yes, there are companies that put $350k worth of gear into
> POP's for peering/transit .. not uncommon at all.
> 
> Paul
> 
> 
> -----Original Message-----
> From: Af [mailto:[email protected]] On Behalf Of Seth Mattinen
> Sent: Sunday, July 12, 2015 4:22 PM
> To: [email protected]
> Subject: Re: [AFMUG] Anyone heard of GTT
> 
> On 7/12/15 8:34, Faisal Imtiaz wrote:
> > Here is an older but relevant article on this topic..
> >
> > http://drpeering.net/white-papers/Internet-Transit-Pricing-Historical-And-Projected.php
> 
> 
> Dang, who is really paying $10k/mo for peering?
> 
> ~Seth
> 
> 

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