On Wed, Dec 04, 2002 at 03:52:38PM -0800, Eric Sorenson wrote:
> Sorry to resurrect this thread but there were a couple of points
> here that struck me..
> On Sun, 1 Dec 2002, Tim Pozar wrote:
> > As a co-founder of an early ISP (TLGnet), I had originally defended
> > these appropriate use policies as the low pricing of residential
> > broadband supports it.  Up until recently[1], wholesale broadband
> > costs were at $200-500 per Megabit per month. 
> 
> As far as I know, reasonable quality Internet connectivity (excluding
> deals for peering arrangments, as you noted) still bottoms out at around
> $200 per month per megabit, up through the 50-100mbit range. 
>
> [...] 
> > [1] A number of ISPs such as Cogent are offering wholesale bandwidth
> >     at $30-50 a Megabit per month.  There is some industry concern
> >     about the peering arrangement they have and how they can continue
> >     to offer these prices and be profitable.  Many other co-location
> >     providers are using Cogent and this pricing in their service
> >     pricing (ie.  Level3, Stream Guys, etc.)  We may get to the
> >     point, like in Japan that bandwidth costs are just not a factor
> >     to end user pricing.  For instance, in Japan you can get 6Mb/s
> >     DSL for $20 a month and 12 Mb/s DSL for about $30 a month.
> 
> I talked to cogent a couple of years ago when we were shopping for
> high-bandwidth ISPs. Please correct me if their pricing or business
> model has changed since then, but at the time, the "100 megabits for
> $1000 / mo" deal was predicated upon a) fiber availability to your
> site (buildout costs not included), and b) your location being a 
> suitable multi-tenant facility where they'd be able to get more 
> customers to amortize the cost of the backhaul.  They're doing the
> same thing as the DSL ISP's, just with the MRF and Mb times 10.

They must have change their pricing.  I don't have the full details,
but it seems if you are a a reseller of bandwidth that will actually
pull some X amount of Mb/s, your pricing will be around $30-50 per
Mb/s per month.  A number of ISPs are actually reselling Cogent
(United Layer, Stream Guys) for slightly over what Cogent is selling
it for.  For instance, I got a quote from The Stream Guys for
bandwidth at $65 per Mb/s per month.

My point was that bandwidth prices for *some* transit is actually
getting pretty low for ISPs.  Cogent is an exception to the rule
of $200 per Mb/s per month.  I only footnoted them as someone would
likely call me on the pricing that I quoted.
 
> I don't think Level3 is using Cogent, if anything Cogent uses
> either Level3's "wavelength" semi-dark-fiber product or their IP
> network for transit. 

I may have confused myself about this.  When I last check into
Layer3 peering and transit, some months ago, I though they were
using some transit from Cogent.  Perhaps it is the other way around.
I do know that United Layer and Stream Guys are examples of ISPs/Colos
that are currently using Cogent.

Tim
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