[AusNOG] IP Transit price collapsing

[Damien Morris]

On 24/02/11 10:17 AM, "Bevan Slattery" <Bevan.Slattery at nextdc.com> wrote:

>What?

Maybe I've managed to cross a few wires here but I thought you stated in
an earlier email: "Here¹s a little bit of irony.  International bandwidth
pricing without competition was around $300/Mbps 3 years ago.  With
competition it¹s now $35/Mbps.  Within the next 12 months it will be
cheaper to get bandwidth from Iraq (Internet) to Sydney than from a the
house next door to the PoI to the PoI.  Sorry ­ that¹s a bit extreme (but
true).  I should have said in 12 months it will be cheaper to get
bandwidth (transit) from anywhere in the world to Sydney, than from
anywhere in the PoI to the PoI."

Which seemed to indicate that you believe international transit is cheaper
than domestic. I'm trying to confirm with you if this is your opinion/what
you're seeing in the market :)

Thanks,
Damien.



>
>On 23/02/11 9:36 PM, "Bevan Slattery" <Bevan.Slattery at nextdc.com> wrote:
>
>>Yes - volume IP pricing is already at the $35/Mbps/month.  Tithe price
>>of international IP has absolutely collapsed in the past 18 months.
>>Bandwidth has dropped from $250/Mbps 3 years ago to $150-200/Mbps 2
>>years ago, $80-$100/Mbps 1 year ago to $35 today.  I even heard $25
>>mentioned to me this week.  Australian pricing is now getting
>>comparable to Hong Kong.  Great if you run a DC and want to get cloud
>>operators here.  Bad if you sell IP.
>>
>>Glad I'm not in the network game anymore! :)
>>
>
>But are you claiming that domestic is more expensive than international..?
>