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

[Mark Newton]

On Aug 27, 2014, at 9:59 AM, Ben Grubb <bgrubb at fairfaxmedia.com.au> wrote:

> "Frankly, if Netflix wanted to really put the cat amongst the pigeons, it'd
> come in with a great service and pay Telstra for "transit" (only actually
> using them as a last-resort provider for routes it can't get elsewhere, to
> minimise traffic costs) -- for a time."
> 
> They could so that.... but why would they when they could just open in a market where it's cheaper before here?
> As CloudFlare points out, it's 20X Europe for bandwidth here and Telstra is apparently to blame for a lot of this.

We’ve covered this subject on this mailing list before. Recently. Goldfish memory.

If Netflix wanted to really put the cat amongst the pigeons, it’d come in with a great service provided from its existing servers in California, for which the load presented by the entire Australian marketplace is basically a rounding error. 

It would not pay any Australian providers any money for anything, because its application is not latency sensitive, and can easily be delivered over the transit they’re already paying for in North America.

If I was Netflix, I’d stand up a few racks of content servers in Equinix Sydney and say to Australian carriers, “We control the outbound routing for our content servers.  If you peer with us, we’ll send your users content from Sydney over peering and everyone will be happy.  If you don’t, we’ll send it to you over transit in California.  And we’re going to carpetbomb the marketplace with advertising, so your user complaints, transit costs, and long-haul submarine transmission costs will increase exponentially from today onwards unless you stop being a dick about peering.  And no, we won’t be signing any confidentiality agreements, and if you ask for any we’ll just delete your email.  Negotiations are now concluded: bring it on.”

Just watch how quickly Telstra and Optus flock towards the peering game.  Solved problem.

    - mark


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