Quote:
Originally Posted by Brad Mitchell
Come on Mark, you'd really need much more than that 
If I can find $6/megabit, I'll take as many gigabits as they'll sell me!
Impossible request, move on. If anyone offers it to you, it's a scam. Doesn't matter how much peering they do and what networks they mix in.
Cheers,
Brad |
Again... to reiterate, that's not exactly true. Coming from a US-centric world, yes, $6/Mbps is a joke. However, the cost of peering is significantly less. A 1Gbps port at LINX costs about ~1K USD/mo. Subsequent ports are discounted 25%.
That's ~$1/Mbps - with an aggregate cost that could drop down closer to $.75/Mbps. Figure if you're peering at a conservative (for Europe) 50%, and purchasing from any number of providers that will offer you $10/Mbps, you have an average cost of $5.5 USD/Mbps.
Now, this doesn't take into account a lot of overhead costs that are often discounted (proper network infrastructure, and clueful people to manage it), but realistically costs could go even lower if you're doing more traffic and peering more traffic.
Again, as I mentioned previously, traffic egressing Europe will almost certainly have a lower peering "hit rate", increasing your cost for that traffic. They're playing a numbers game here - if in their metrics based on their usage and growth patterns, they can sustain it, more power to them.
Best,
Sam