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

[Mark ZZZ Smith]

>________________________________
> From: Ben Grubb <bgrubb at fairfaxmedia.com.au>
>To: James Andrewartha <trs80 at ucc.gu.uwa.edu.au> 
>Cc: ausnog at ausnog.net 
>Sent: Tuesday, 26 August 2014 11:35 PM
>Subject: Re: [AusNOG] CloudFlare: The Relative Cost of Bandwidth Around the    World
> 
>
>
>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.
>

From the way you've written this, I get the impression you might not quite understand exactly what 'transit' is. Given how well the press seem to understand and write about Internet issues, bad explanations are worse than no explanation.

Telstra are not in a position to keep Netflix out of Australia using their transit prices, because Netflix don't have to buy transit from Telstra to gain access to Telstra's eyeball customers. There would be plenty of options for Netflix to gain cost effective access to Telstra eyeballs - directly via domestic Telstra transit, indirectly via one of the other so called 'gang of four' regulated peers, or indirectly via any of Telstra's large transit customers who have lots of available bandwidth towards Telstra because their current traffic pattern is to receive lots of traffic from Telstra. 

>
>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.
>>
>>--
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