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Re: Provider credibility - does it matter? was Re: Inter-provider relations

  • From: Barry Raveendran Greene
  • Date: Fri Oct 25 23:21:32 1996

Jeremy Porter wrote:

>The Economist's model is incomplete, however I really doubt
>it could be argued that Europe subsidizes the US Internet.
>A large reason the cost of international leased lines are so
>high is due to projectionist tariffs in international Telecom.
>I understand it is cheaper to buy a leased line from the
>us to Europe than the other way around.  

OK. So take the US 1/2 circuit costs for both halves of a Atlantic circuit. A T1 would cost 5 - 6 time more across the Atlantic vs 10 times the cost if it was 1/2 US 1/2 Euro-Telco.  If the circuit was across the Pacific, and you used the US price for both 1/2s then a T1 would be 7 - 8 time more than a T1 in the US. 

Yes, Jeremy. You cannot escape the fact that the rest of the world subsidizes US ISP who access the Internet around the world. The economics are skewed. A customer in a ISP in country X. would pay the realistic charges for International access. A customer in a ISP in the US pay domestic access for full international connectivity.

That's reality. 

Barry

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Barry Raveendran Greene             |       ||        ||        |
Senior Consulting Engineering       |       ||        ||        |
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