|
North American Network Operators Group Date Prev | Date Next | Date Index | Thread Index | Author Index | Historical Re: Backbone IP network Economics - peering and transit
On Mon, 19 Apr 2004, Gordon Cook wrote: > Peering? Who needs peering if transit can be had > for $20 per megabit per second? Isnt the companies still "doped" from the bubble in 2000-2001? Price example: You have three cities. Two 12400 GSRs per city, and OC192 to connect them, that's a total of 12 $150k ($225k minus rebate) cards and let's say $100k per router for customer facing interfaces etc (unrealistically low). If you want to pay this investment back over three years and let's say you'll push 10gigs of customer paying traffic (because of redundancy etc). You end up with close to $10 per megabit in just equipment fee to cisco so you have half of the money left from the initally stated price of $20 per megabit, this for a small inter-metro network. Since Cisco basically hasnt lowered the price per megabit on any interface cards for the GSR platform, it cannot be used apart from doing very long distance transfer via DWDM where the links are full of revenue-generating traffic all the time. Juniper is even more expensive. We like these platforms, they're very stable and well performing, but I just cannot see where they can be justified investing in at todays megabit price. -- Mikael Abrahamsson email: [email protected]
|