North American Network Operators Group

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different thinking on exchanging traffic

  • From: Jonathan Arneault
  • Date: Fri May 22 20:36:15 1998

A few days ago I posted a proposal for traffic exchange across an ATM
backbone specifically designed for that purpose.  I am suggesting an NxOC-48
network with peers purchasing DS3 connections at their various geographic
locations, and establishing ATM PVCs with specified CBR's to their
respective peers. Each DS3 connection would allow up to 5 PVCs, with
over-subscription at a 2 to 1 maximum.  In this scenario, a flat pricing for
a port would be about 5K/month, and CBR's would be set at a maximum of
10K/mo for full DS3 bandwidth.

Since the beginning of this thread, I have been in contact with several
venture capital firms to feel out the support from the financial world about
making this do-able.  I have estimated the costs involved with the fiber and
switch purchases at about US 691MM for sunk capital costs, and approximately
250K/mo for operating expenses.

With strong indications of its fiscal viability, I am now asking you, the
potential consumers of such a service, your distinct opinions, and whether
or not you would purchase such a service if made available.

Specifically, if I build it, will you come.

Your response will determine whether or not I will proceed in my discussions
with the VCs, and will probably be incorporated into a supporting document
in the application for funding.  It is understood that no statement you make
in regard to this letter will be legally binding, and will in no wise
obligate you to purchase this service if and when it becomes available.

I'm really asking you all to do me a favor by letting me know if you'd like
to see this or not.  If so, great.  If not, I'd rather spend my energy on
something that'll be successful.

Please respond to me directly, and include your name, title, your company's
name, and a day-time telephone number.

Thanks much,
Jonathan Arneault
[email protected]