North American Network Operators Group
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RE: optics pricing (Re: Weird GigE Media Converter Behavior)

  • From: Michel Py
  • Date: Fri Aug 27 22:07:59 2004 
> Mikael Abrahamsson wrote:
> 4 port OC192 IR $1030k
> Is there anyone who can justify this pricing
> with anything else than "because we can?"

That's a heck of a good reason! Any for-profit business tries hard to
position themselves where they could name their price.

This pricing is consistent with the guesses/predictions that were
floating at the time of the product announcement; there was some
political will to have a million bucks line card (otherwise they would
have priced it at $999,950 ;-). This is Rolls-Royce marketing: if it's
so darn pricey it's because it's so darn good. Like Rolls-Royce cars,
the ones that buy them are typically not the ones that drive them, so
technical arguments tend to become irrelevant.

Michel.