North American Network Operators Group

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Re: single homed public-peer bandwidth ... pricing survey ?

  • From: Justin M. Streiner
  • Date: Tue Mar 06 18:21:20 2007

On Tue, 6 Mar 2007, Jason Arnaute wrote:

Yes, that's what I am saying - one pipe only, and if
it goes down, I go down.

Ok, so it sounds like they're doing MPLS or some sort of policy routing to force your traffic out one of their transit providers. I've seen other providers do this. Is this something you contractually requested? If so, I'd hope the price would be less than the multi-homed service I'm assuming
they sell to other customers.

So ... I am wondering if roughly $150/mb/s is just way
off the charts for something like that, or if I am
only overpaying by roughly 10-30% or so ...

That depends on how much bandwidth you're buying. If you're buying 1 Mb/s, that's probably not too unreasonable, though maybe just a bit high. If you're buying 100 Mb/s, I'd hazard a guess that you're being robbed.
Double-check your contract for what they sold you, compared to what you bought.

And then, of course, I'd like to be pointed to where I
can learn why HE.NET and L3 are so cheap compared to
that, and what my cost/benefit would be to

Again, it comes down to your current contract and the fine print on the deals the other providers are pitching. I doubt someone will sell you 1 Mb/s of bandwidth at >$30/Mb. Those numbers likely have strings attached to them, i.e. if you buy 100 Mb/s or more, sign some kind of long-term deal, buy other "value-add" services, etc.

(as for racks and power, it is on the high average
side.  Roughly $1000/mo for a full cabinet)

In some parts of the country, colocation is becoming more of a seller's market - high demand, space is at a premium.