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Re: Backbone IP network Economics - peering and transit
On Apr 19, 2004, at 10:45 PM, Michel Py wrote:
Then their traffic will not justify 1000s of $$ per month for lines, racks, and NAP connection.Peering? Who needs peering if transit can be had for $20 per megabit per second?The smaller guys that don't buy transit buy the gigabit.
Unless they have cheap access to a free NAP (TorIX, SIX, etc.), transit, even at higher prices, is probably be the best / cheapest way to reach the Internet.
OTOH, for the guys who do buy a lot of traffic, a NAP connection might be worth it. For instance, if you have a node in 151 Front Street, it would be silly not to connect to the TorIX for a one-time fee and send free traffic to a lot of good eyeballs in Canada - not to mention the performance benefits. The same might be true of an PAIX / Equinix location.
Saying "who needs [foo]" is not a good question without supplying the other variables. It all depends on your traffic mix, locations, deals you can make with the NAPs, networks who will peer with you, etc.