North American Network Operators Group
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Re: Sprint peering policy

  • From: Robert A. Hayden
  • Date: Mon Jul 01 19:22:22 2002 
On Mon, 1 Jul 2002, Leo Bicknell wrote:

> There is no way for a company to price transit below their peering
> costs and make money.  So the question becomes, is $50/meg too low.
> I believe so.  I think that the companies selling at $50 a meg are
> in a desperate attempt to get revenue in the door, even if it comes
> in at a loss.  If you've paid $70/meg for a peering connection a
> loss of $20 is better than not selling, and having a loss of $70.

Reminds me of something a former boss told me.  "We lose money on every
customer, but we make it up in volume." :-)