3 edits | reply to funchords
Re: NN = Big Business not Consumers said by funchords:1 - Hook it up to a transit provider's box, where the bits will travel approximately 5 feet across the gateway into an ISP (and be charged to the ISP and the content provider). OR This tactic is used as arbitrage. If you don't peer with me, bad ISP C will give me your routes for $2 (lower than your costs to carry) as it only costs them a router hop vs your 500-1000 miles. (more costs). Depeering is less of an option in these situations due to the public impact. This is why peering is broken
said by funchords:2 - Hook it up to the ISP's box, where the bits don't cross a transit provider's network and nobody has to pay the transit provider anything. All providers these days are also transit providers and fund capital growth on Internet revenues. They peer with "peers" and balance the costs/trade of carrying traffic to respective parts of the Internet. Most growth based transit revenues go away with the oligopolists content arbitrage pushing to the consumer.
This is more than "cut out the middleman." This is remove the transit business and two party funding model to a single payer system based on flat fee vs growth based.
Think beyond the rhetoric and NN positioning.
said by funchords: ** THIS IS IMPORTANT ** In both cases, 1 & 2, the ISP still pays for the equipment getting the bits to the last mile, and that is still the same amount of equipment carrying the same amount of traffic. Equipment is similar, but now capital is increased as the cost to deliver bits on the content side went from variable with growth (which originally funded the ISP capital) to zero and the consumer doesn't pay any more as they are flat fee.
said by funchords:In both cases, 1 & 2, the content provider still pays (in equipment or transit or both) to get the bits to the exchange. In #1 they pay below the cost to deliver end to end (as ISP C only has a router port) and in #2 they get unlimited free bandwidth moving all growth costs to the consumer. |
