Quote:
Originally Posted by TidalWave
Their transit cost was $3/Meg and they peered off a ton of gigabits from between $0 - $2/Megabit
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Actually, you're wrong on all accords.
First, they peered almost nothing off locally. They had to buy transport, ports, colocation and equipment to facilitate peering in other cities. Ultimately, they paid almost as much for the "free peering" as they did for transit.
Next, even on Cogent they were paying $4 per megabit on full 10G circuits, over 100 gigabit worth. The Level3 they were buying was $5.50 per megabit. They had a couple other places selling them small amounts of select routes at a lower rate, but that's it. No magic beans here.
Lastly, Sandman for you, how many times do we have to tell you it just didn't work out and the demise wasn't just legalities? They were selling 100 gigabit at less than half their cost per megabit to one customer.
Brad