[AusNOG] CloudFlare: The Relative Cost of Bandwidth Around the World

Wed Aug 27 01:17:19 EST 2014

$200/Mbps isn't the real figure.

>From the post: "We don't disclose exactly what we pay for transit, but I
can give you a relative sense of regional differences. To start, let's
assume as a benchmark in North America you'd pay a blended average across
all the transit providers of $10/Mbps. In reality, we pay less than that,
but it can serve as a benchmark, and keep the numbers round as we compare
regions. If you assume that benchmark, for every 1,000Mbps (1Gbps) you'd
pay $10,000/month (again, acknowledge that’s higher than reality, it’s just
an illustrative benchmark and keeps the numbers round, bear with me)."

So he's just using $10 as a starting for North America and saying whatever
the actual figure is it's 20x that here.

In reality It's probably a difference of $1/Mbps to $20/Mbps.

It's a 1:20 ratio is his point

Regards,
Ben Grubb

On 27 August 2014 00:36, Cameron Ferdinands <cameron at jferdinands.com> wrote:

> What about PIPE IX? and PPC-1? A few years ago? PIPE was founded in
> 2001. Joe's been doing a fantastic job at WAIA too.
>
> There's still several networks in AUS that don't peer either or only
> present at a single location. (not GoF), including some big big
> content providers.
>
> $200mbit ? Hardly, those numbers were clearly pulled out of somewhere.
> I also highly doubt they don't participate in paid peering agreements
> in other regions too. This article is junk.
>
> On 27 August 2014 00:15, Wolfgang Nagele (AusRegistry)
> <wolfgang.nagele at ausregistry.com.au> wrote:
> > Australia is making huge strides towards better interconnection. A few
> years
> > ago there was almost no Internet Exchange capacity in use but rather
> > capacity was bought via transit. Nowadays you have Megaport and WAIA
> present
> > in most states and there is a lot of content exchanged via these
> platforms.
> >
> > Fixing Telstra by regulation is a whole different story ...
> >
> > On 8/27/14, 12:08 AM, "Ben Grubb" <bgrubb at fairfaxmedia.com.au> wrote:
> >
> > Sure but there's hardly been any discussion of late on this and the
> impact
> > it has on the Australian market.
> >
> > Net neutrality has barely rated a mention in Australia since 2008.
> Combine
> > it with NBN Co's CVC charge and it's not looking like Australia will
> become
> > attractive for content players at all. Do we want that?
> >
> > Regards,
> > Ben Grubb
> >
> >
> > On 27 August 2014 00:06, Wolfgang Nagele (AusRegistry)
> > <wolfgang.nagele at ausregistry.com.au> wrote:
> >>
> >> Just look into Netflix + <insert large eyeball network name here> in the
> >> US. It’s not an Australian thing. It’s been the “war” between eyeball
> >> networks and content for a while.
> >>
> >> On 8/27/14, 12:04 AM, "Ben Grubb" <bgrubb at fairfaxmedia.com.au> wrote:
> >>
> >> Sure. Doesn't make it right though.
> >>
> >> When talking about the Australian market though are there others besides
> >> Telstra using similar tactics?
> >>
> >> Regards,
> >> Ben Grubb
> >>
> >>
> >> On 27 August 2014 00:02, Wolfgang Nagele (AusRegistry)
> >> <wolfgang.nagele at ausregistry.com.au> wrote:
> >>>
> >>> Simply not true that Telstra is the only one doing this. Deutsche
> Telekom
> >>> has been known to use the same practice for now decades. Swisscom, same
> >>> thing.
> >>>
> >>> All of the Gorillas are doing this. Sadly.
> >>>
> >>> On 8/26/14, 11:35 PM, "Ben Grubb" <bgrubb at fairfaxmedia.com.au> wrote:
> >>>
> >>> I'm planning on writing about this guys for the SMH. Matt at CloudFlare
> >>> gave me the heads up earlier.
> >>>
> >>> If anyone feels like ranting to me about this, drop me a line :)
> >>>
> >>> It's really interesting IMO, especially considering it's in Telstra's
> >>> best interest with its 50% stake in Foxtel to keep content players like
> >>> Netflix away. Only way to do that is by charging them ridiculous
> transit
> >>> fees.
> >>>
> >>> Regards,
> >>> Ben Grubb
> >>>
> >>>
> >>> On 26 August 2014 23:30, James Andrewartha <trs80 at ucc.gu.uwa.edu.au>
> >>> wrote:
> >>>>
> >>>>
> >>>>
> http://blog.cloudflare.com/the-relative-cost-of-bandwidth-around-the-world
> >>>> via https://news.ycombinator.com/item?id=8226654
> >>>>
> >>>> "Australia is the most expensive region in which we operate, but for
> an
> >>>> interesting reason. We peer with virtually every ISP in the region
> >>>> except
> >>>> one: Telstra. Telstra, which controls approximately 50% of the market,
> >>>> and
> >>>> was traditionally the monopoly telecom provider, charges some of the
> >>>> highest transit pricing in the world — 20x the benchmark ($200/Mbps)."
> >>>>
> >>>> Not quite news, but it's still interesting to see the relative
> numbers.
> >>>>
> >>>> --
> >>>> # TRS-80              trs80(a)ucc.gu.uwa.edu.au #/ "Otherwise Bub
> here
> >>>> will do \
> >>>> # UCC Wheel Member     http://trs80.ucc.asn.au/ #|  what squirrels do
> >>>> best     |
> >>>> [ "There's nobody getting rich writing          ]|  -- Collect and
> hide
> >>>> your   |
> >>>> [  software that I know of" -- Bill Gates, 1980 ]\  nuts." -- Acid
> >>>> Reflux #231 /
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