North American Network Operators Group

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Re: OpenTransit (france telecom) depeers cogent

  • From: Michael.Dillon
  • Date: Mon Apr 18 04:49:56 2005

> For many folks too the falling price they buy transit for just meansthey 
are 
> being forced to take that off their product sell prices so they 
dontactually 
> make any more profit.. in which case there is no advantage to buying
> below cost 
> services.

In recent years, the unregulated telecoms industry has struggled
with the steep slide towards commoditization. This is a problem
because the industry's definition of telecom services is so narrow
that there are few opportunities to add value and outrun the 
commoditization wave. 

Moving packets from point A to point B is rapidly becoming
as glamourous and as profitable as moving water from point A
to point B or moving gas, or moving electricity...

The only way out is for the telecoms industry to be dismantled
by 3rd parties who will buy and own networks in order to leverage
those networks for their own value-add services. Everyone else
will just have to get used to repeated cost-cutting exercises.

--Michael Dillon