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freejazz_RdJ

join:2009-03-10
kudos:1

reply to jfmezei

Re: Status of 2008-108 Throttling Review and Vary

I'll agree that cost studies don't really come into play in the R&V process since they had no part in the original proceeding... cost of the service wasn't discussed as a central claim.

I'm sure we'll be fascinated by the cost study analysis, but the costs themselves likely won't be public in order to protect the business, as we would expect. It could either be that they've been making obscene profits on the GAS service or that they've been making little if any profit. At the end of the day, if it isn't obscenely profitable and they can show growth in traffic and the corresponding growth in transport isn't being recouped by the GAS fees it would hurt the indie ISP's.

It's also important to remember that the transport of a GAS customer's traffic is more expensive than for a retail client. Not only because retail clients likely hit an IP-pop much closer to home, but because GAS clients require additional engineering/equipment/licensing that wouldn't be needed if wholesale didn't exist.

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