North American Network Operators Group

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Re: Sprint v. Cogent, some clarity & facts

  • From: Tore Anderson
  • Date: Mon Nov 03 10:43:01 2008

* Stephen Sprunk

> What it all comes down to is that the majority of eyeballs are on
> "residential" connections that are relatively expensive to provide
> but for which are sold at a relatively low price (often 1/10th as
> much per megabit of capacity).  Those eyeball ISPs cannot or will not
> charge their customers the full cost of "receiving" traffic so they
> want money from the more profitable content ISPs "sending" the
> traffic to offset their losses.

Another point worth mentioning is that the traffic is going to flow 
between those two ISPs _anyway_.  Therefore, in many cases the only 
ones to profit from them not reaching a peering agreement 
(settlement-free or not) is their upstream(s), who is probably 
delighted to be able to charge them both for the transit traffic.

Tore Anderson