I do agree with what you say, but in the access business too much bandwidth
is never enough. This kind of goes full circle to Rick's original post.
People will be wanting more bandwidth. If you're using 20 megs now, expect
to use 100 megs in a short couple of years.
-----
Mike Hammett
Intelligent Computing Solutions
http://www.ics-il.com
----- Original Message -----
From: "Matt Liotta" <[EMAIL PROTECTED]>
To: "WISPA General List" <[email protected]>
Sent: Wednesday, September 12, 2007 7:31 AM
Subject: Re: [WISPA] Alternate transport providers, Cogent
Mike Hammett wrote:
I have yet to see anyone go under $15 on 100 megs. That said, I haven't
really been looking in a few months.
Tier 1 is available for under $15. Of course the price per meg gets people
all screwed up since most people don't want 100 megs. For example, let's
say you are looking for 20 meg commit burstable to 100. Your only choice
with Cogent is 100 megs for $15. However, paying retail for Level3 will
get 20 meg commit for $45 per meg, which is much higher than $15, but at
the 20 meg level is only $900 MRC vs. Cogent's $1,500 MRC.
Further, let's say you accept that no carrier no matter how good they are
is perfect. That means you need more than one carrier. Now let's say you
do about 50Mbps sustained and want to burst higher. Again, with Cogent you
need to by 100 megs for $1,500 and then some other carrier. Unfortunately,
buying the 100 megs is a waste since if you get another carrier you will
use even less Cogent bandwidth. Now let's say you pickup 20 megs from
Savvis for $30, 20 megs from GBLX for $30, and 20 megs from Telia for $20.
That would mean you have a total commit across carriers of 60 megs and are
paying a total of $1,400. Additionally, that allows you to burst up to 300
megs across the 3 carriers.
Obviously, there is a whole host of issues and solutions that can come
with mix and matching providers, but one thing seems to always be true;
Cogent's inflexibility in their services makes it harder to put them in
the mix.
In our case, we don't sell bandwidth as cheap as Cogent or even as some of
the tier 1s we buy from. We believe our bandwidth is more valuable for 3
reasons.
First, we will see you any commit you want and allow it to burst as high
as you want. Want 10 meg commit on a GigE? Bring it on. This allows you to
only pay for what you use. Just like other carriers the price per meg
drops as you buy more, but not buying excess capacity even at a higher
rate is cheaper.
Second, we buy from every tier 1 that has interesting routes. After buying
enough tier 1s additional providers don't make the routing any better.
Additionally, we peer with every major content provider and attempt to
peer with tier 2 and tier 3 providers when we can. The big guys like to
play favorites with peering policies, while we just want the best routes.
Third, we understand what BGP is and is not. BGP has no concept for the
performance of routes. Performance matters! We route optimize our
bandwidth to ensure not the shortest or cheapest route, but the best
performing route.
At the end of the day, all of our businesses are measured by the quality
of reliability of our internet service. Many WISPs like to focus on the
wireless portion, but it is the sum of the parts that matters.
-Matt
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** FREE Exhibits and Events Pass available until August 31 **
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