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North American Network Operators Group Date Prev | Date Next | Date Index | Thread Index | Author Index | Historical Re: topological closeness....
On Thu, 16 May 1996, Geoff Huston wrote: > Paul, > > You can be a vocal as you desire, but ultimately from this part of the > globe the dominant factor in any ISP business is the cost of the > International Private Lease. This lease cost is approximately 10 times > the cost of domestic infrastructure. > > Now when you construct an IPL in a competitive environment where do > you terminate it? Generally you are loking for an optimal mix of price > and functionality. The observation for the AP region today is that the > cheapest IPL half circuits for the AP region terminate in the > US. Hence Randy's observation. The internal infrastructure within the > AP region happens in a second pass, once the primary objective of > major connectivity is achieved internal infrastructure can be cost > effective if there is internal traffic flow to match. > > About the only thing that could hasten regional infrastructure is a > drastic revision of the trading practices and expectation of return on > investment by the undersea cable investors. Exchange points have > little impact per se as they are, in economic terms, a minor aspect of > the entire equation. Exactly. And all the regional governments should realize that the best way of shifting traffic from North America to their region is de-regulating the international telecommunications market, scrapping monopolies and increasing competition among carriers. That will result much more effective than policy-making and verbal "declarations of independence". Enzo - - - - - - - - - - - - - - - - -
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