North American Network Operators Group

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Re: Cogent/Level 3 depeering

  • From: Jeff Shultz
  • Date: Wed Oct 05 16:40:40 2005

Simon Lockhart wrote:

Yes, it could have - I'm led to believe that one of the parties does purchase
transit. However, moving all that traffic over transit rather than peering
would cost them a significant amount of money - and as they're running their
transit service at extremely low cost, they probably would find it hard to
fund the use of transit to reach the other party.

Okay, here is how I see this war... which seems to be the proper term for it.

1. Level 3 is probably annoyed at Cogent for doing the extremely low cost transit thing, thus putting price pressures on other providers - including them. So they declared war.

2. Level 3's assault method is to drop peering with Cogent, in hopes this will force Cogent to purchase transit to them in some fashion (does Level 3 have an inflated idea of their own worth?), also forcing them to raise prices and hopefully (for Level 3) returning some stability to the market.

3. Cogent's counter-attack is to instead offer free transit to all single homed Level 3 customers instead, effectively stealing them (and their revenue) from Level 3... and lowering the value of Level 3 service some amount as well.

4. Next move, if they choose to make one, is Level 3's.

Fun. I think I'll stay in the trenches.

Jeff Shultz