|reply to espaeth |
Re: Sonic.net has a different cost model for transit
While your partially right, the truth is that the bandwidth used in all of those peering agreements will drop considerably, netflix accounts for a huge amount of traffic, especially at peak times.
even if level 3 raises rates, the isp is going to be requesting a lot less traffic, overall costs shouldn't increase for the ISP, and likely will decrease, though not as much as they will for Netflix.
The real loser in this scenario is level 3, I doubt they can seriously raise prices to the point it will make up for the lost data transfer netflix and the isp are using.