Of course YMMV. 

I'm speaking from the perspective of ISPs between say 300 and 10k customers. 
I'm knee deep in that community. 

I'm also generally speaking of facilities that don't have astronomical cross 
connect charges (so not Equinix, DRT, etc.). In some places, the cross connect 
cost is nominal, so we just cover it in the IX fee. 




----- 
Mike Hammett 
Intelligent Computing Solutions 

Midwest Internet Exchange 

The Brothers WISP 

----- Original Message -----

From: nanog-...@mail.com 
To: nanog@nanog.org 
Cc: "Mike Hammett" <na...@ics-il.net> 
Sent: Saturday, December 15, 2018 11:37:28 AM 
Subject: Re: How to choose a transit provider? 

Mike Hammett wrote: 
> Usually, DIA (as transit delivered to a customer) is more expensive than 
> transport + transit + small colo 
> (1U\2U stuff) + IX... at least as observed by many of my brethren. 

Is this really true in the general case? 

Adding colo and IX to transport and transit involves at least one additional 
cross connect and an IX port fee. This is likely to push the total above the 
pure DIA price. 

However, regardless of how the numbers pencil out, this isn't really a fair 
comparison. For small ISPs, the yardstick against which adding an IX to the mix 
is usually measured against is the marginal cost of IP transit. Given that the 
cost of transport is fixed, is it more economical to buy more IP transit or to 
join an IX? 

Transit being so cheap means that joining an IX isn't always so enticing from a 
financial perspective, although there are other non-monetary benefits. 

I certainly subscribe to the notion that transport + transit is usually less 
expensive than DIA, but this does depend on the market and location. 

Jared 

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