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Current street prices for US Internet Transit

  • From: William B. Norton
  • Date: Thu Aug 12 08:52:44 2004


Hi all -

As I'm putting together some Peering vs. Transit pricing models for an upcoming peering forum in NYC, I'd like to verify some current transit prices I am getting from the field. Here is what the peering coordinators are telling me... Sound about right to you guys?

ISP Transit Commits and Prices (Tier 2 ISP buying from non-bottom feeder ISPs)
---------------------------------------------------------------------------------------------------------------------
if you commit to 1M per month you will pay about $125/Mbps
if you commit to 10M per month you will pay about $ 60/Mbps
if you commit to 100M per month you will pay about $45/Mbps
if you commit to 1000M per month you will pay about $30/Mbps

Round Number Costs for Local Loops into an IX
100M $1000/month
1000M $4000/month

If you have any actual price quote #'s that I can generalize that would be great. If you can say too high, too low, about right based on the commits, that would help also.

Please note that I'm not looking for the best price one could get, but rather an average street price a Tier 2 ISP or cable company (or network savvy Content company) would pay. These prices are going to used for modelling The Business Case for Peering v2, an update to the original white paper describing when peering makes sense financially... more on this later.

Thanks!

Bill