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Cogent Sees First Ever Quarterly Traffic Decline
Exaflood? What Exaflood?
by Karl Bode Monday 11-Aug-2008 tags: Video · bandwidth · world · networking
Purveyor of inexpensive "McBandwidth" Cogent is reporting their first ever quarterly traffic volume decline. According to the carrier, the decline is blamed in part on normal lower seasonal use, but the company says they also "saw a series of video and social networking sites exhibit much more modest traffic growth than they had been." Cogent CEO Dave Schaeffer apparently didn't get the "impending exaflood doom" memo, given he even goes so far as to proclaim "we’ve not seen a massive migration of video consumption over the Internet." He notes that the average consumer still watches online video for 4.5 minutes per day and traditional broadcast television for 4.5 hours per day.

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Matt3
All noise, no signal.
Premium
join:2003-07-20
Jamestown, NC
kudos:12

Nip it in the bud

All the MSOs - and now the ILECs - are trying to do is protect their television and VoD revenues, while generating a new profit stream like cell phone overages. If they can get an additional $25-$50 for overages, even once, out of a large percentage of their customer base, while simultaneously lowering their actual usage, it's a win-win for them.

If you've had a cell phone overage, you know exactly what I'm talking about. Go over by 100 minutes or so and BAM, your cell phone bill just went up $50. The MSOs and ILECs are viewing that like an excited kid standing in front of the oven waiting for the cookies to come out. They just have to figure out how to sneak one without Grandma knowing.
danry25
Premium
join:2008-05-21
Seattle, WA

Thats Just Depressing.

Wow, I never thought their traffic would decline! I mean weren't they the inexpensive tier 1 isp!

Defiance82
Computer Elite
Premium
join:2002-09-11
Burlington, WI
Reviews:
·Time Warner Cable
·Comcast

Re: Thats Just Depressing.

I had used them back in 2000. Worst ISP ever! Constant network latency issues and worst network I have ever seen. I wouldn't ever think of going back to them.
--
Programming is like sex. One mistake - endless support.
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SLD
Premium
join:2002-04-17
San Francisco, CA

Re: Thats Just Depressing.

I've had the opposite experience. Latency issues have come about, but because of other, larger transit carriers screwing up Cogent traffic. But Cogent pushed through resolution and amazing customer service. YMMV, and I've only been with them since the beginning of the year.
openbox9
Premium
join:2004-01-26
japan
kudos:2
I don't believe they're tier 1.

Ignite
Premium,VIP
join:2004-03-18
UK

Re: Thats Just Depressing.

said by openbox9:

I don't believe they're tier 1.
Believe it or not they certainly are

SLD
Premium
join:2002-04-17
San Francisco, CA

Re: Thats Just Depressing.

Technically, they are tier 2. Sales calls it tier 1, but talk to support and they know they are tier 2.

scooby
Premium
join:2001-05-01
Schaumburg, IL
kudos:1
said by Ignite:

said by openbox9:

I don't believe they're tier 1.
Believe it or not they certainly are
Cogent buys transit which means they are not tier 1.

"A Tier 1 Network is an IP network (typically but not necessarily an Internet Service Provider) which connects to the entire Internet solely via Settlement Free Interconnection, also known as settlement free peering"

sporkme
drop the crantini and move it, sister
Premium,MVM
join:2000-07-01
Morristown, NJ
Reviews:
·Optimum Online

Re: Thats Just Depressing.

said by scooby:

said by Ignite:

said by openbox9:

I don't believe they're tier 1.
Believe it or not they certainly are
Cogent buys transit which means they are not tier 1.
They don't buy transit anymore:

»www.renesys.com/blog/2008/06/cog···tml#more

In my book, that's Tier-1, marketing BS aside. Yes, they have paid-peering, but that's not transit.

scooby
Premium
join:2001-05-01
Schaumburg, IL
kudos:1

Re: Thats Just Depressing.

said by sporkme:

They don't buy transit anymore:

»www.renesys.com/blog/2008/06/cog···tml#more

In my book, that's Tier-1, marketing BS aside. Yes, they have paid-peering, but that's not transit.
I stand corrected. As of June 26th, 2008 they appear to be a tier 1 network by the book definition. Cogent is definitely not a bad provider, I would just never want to be single homed to them. Cogent is a perfect fit for a second or third provider. Bang for the buck is quite high.

sporkme
drop the crantini and move it, sister
Premium,MVM
join:2000-07-01
Morristown, NJ
Reviews:
·Optimum Online

Re: Thats Just Depressing.

said by scooby:

I stand corrected. As of June 26th, 2008 they appear to be a tier 1 network by the book definition. Cogent is definitely not a bad provider, I would just never want to be single homed to them. Cogent is a perfect fit for a second or third provider. Bang for the buck is quite high.
I just stumbled upon that Renesys blog today. I like it quite a bit.

Their other article about Cogent not sucking is really good:

»www.renesys.com/blog/2007/08/cog···on.shtml

At work we recently were dabbling in metro ethernet stuff. I have never, ever had a harder time trying to give people money. ConEd/RCN business, I'm looking right at you. How can you not know if you have f*cking equipment in a building or not????

captain456

@gci.com
said by Ignite:

said by openbox9:

I don't believe they're tier 1.
Believe it or not they certainly are
You are certainly wrong. By definition they are tier 2. There is no debate. look up the definition of tier 1 and tier 2 then read through Cogents public documents you can find on the internet. It's quite obvious

Jerm

join:2000-04-10
Richland, WA
kudos:2
»en.wikipedia.org/wiki/Tier_1_network

So technically they are one of the 14 ISPs that could be considered tier 1, however because of the free peering settlement issues Cogent has had in the past you could argue Tier 2...

captain456

@gci.com

Re: Thats Just Depressing.

said by Jerm:

»en.wikipedia.org/wiki/Tier_1_network

So technically they are one of the 14 ISPs that could be considered tier 1, however because of the free peering settlement issues Cogent has had in the past you could argue Tier 2...
No you fail to understand. See my other post. Skip wikipedia and the read the definition of Tier 1 and tier 2 then find Cogents public documents on the net and read them

Jerm

join:2000-04-10
Richland, WA
kudos:2

Re: Thats Just Depressing.

cap... no it's you who fail to understand.

Instead of throwing out a "read docs" I'd rather have you read the actual wiki article I linked to.

It does a great job of laying out the whole scenario.

Essentially by strict definition, settlement free peering is required for Tier 1 status. But when it really comes down it to, all ISPs at some point or another pay each other, just it may not be for peering data.

Again, just read that article it lays it out all quite well. If you feel differently why don't you go ahead and update it? Thats what a wiki is for after all

hayabusa3303
Over 200 mph
Premium
join:2005-06-29
kudos:1

Re: Thats Just Depressing.

said by Jerm:If you feel differently why don't you go ahead and update it? Thats what a wiki is for after all
[/BQUOTE :


Dont tell him that he will screw it up worst.
ossito16

join:2004-07-31
Whiting, IN

average is 4.5 minutes

I blast that out of the water with watching one legal time shifted tv episode of Martin on youtube.

KoolMoe
Aw Man
Premium
join:2001-02-14
Annapolis, MD

Re: average is 4.5 minutes

That struck me as odd too. SO folks really are just watching a couple minute-long YouTube videos or getting their rocks off in just a couple minutes of porn? Online video like at NBC, ABC, Hulu, etc. really isn't used all that much?
KM
openbox9
Premium
join:2004-01-26
japan
kudos:2

Re: average is 4.5 minutes

said by KoolMoe:

SO folks really are just watching a couple minute-long YouTube videos or getting their rocks off in just a couple minutes of porn? Online video like at NBC, ABC, Hulu, etc. really isn't used all that much?
KM
The average user's consumption is 4.5 minutes per day. Traditional content distribution is still king.
consumers watch Internet video for an average of 4.5 minutes per day and traditional broadcast television for 4.5 hours per day

Linklist
Premium
join:2002-03-03
Longport, NJ
kudos:5

Cogent blowing smoke because competitors eating their lunch

Cogent began seeing the rate of Internet traffic growth decelerate early this year. In both April and May the company saw 1% sequential traffic growth, far below its historical levels, which, compounded over the past five years, have been around 120%. And the company’s observations coincide with the latest worldwide Internet traffic measurements from the University of Minnesota, which indicate growth continuing at 50% to 60% annually but perhaps at a slightly slower rate.
Traffic growth is still high. It is only Cogent that is trailing. It sounds like Cogent's CEO is making excuses for his companies poor performance.
--
My BLOG .. .. Internet News .. .. My Web Page
Ask yourself one question: 'Do I feel lucky?' Well, do ya punk?
openbox9
Premium
join:2004-01-26
japan
kudos:2

Re: Cogent blowing smoke because competitors eating their lunch

Maybe Cogent should play nicer in their peering agreements. They might see more traffic if they weren't occasionally in peering disputes.

morbo
Complete Your Transaction

join:2002-01-22
00000

i blame

i blame the economy. people need to have 2 and 3 jobs to keep afloat. that means, less time porn surfing.
iansltx

join:2007-02-19
Golden, CO
kudos:2
Reviews:
·Verizon Online DSL
·RoadRunner Cable
·Comcast

Re: i blame

Yaknow, Cogent DOES have other big names" on their network, like Blip.tv and Carbonite backup. Also, it looks like their network and such ave gotten better over the years as their pricing has gone down, to the point that you get more than you pay for. Plus, who's going to offer you a symmetric fiber connection direct to the internet, without oversubscription, for a price in the range of residential internet per megabit? Cogent, nobody else.

SLD
Premium
join:2002-04-17
San Francisco, CA

3 edits

Re: i blame

Yep, we're paying $6/Mbit burstable to 1Gig. Try to get that from Level3 LOL. Of course, we are single-homed with them, and do mainly video distribution, but I run a bunch of other websites off the bandwidth and have very few issues. Its easy to overlook the occasional dispute for these prices. And I think of these peering disputes as the market working itself out. If Cogent wasn't pushing, then who would be?

pspcrazy
Anime Freak

join:2008-02-06
San Diego, CA
How much does it cost you per month to use them on average also do they have direct ethernet to residential?
iansltx

join:2007-02-19
Golden, CO
kudos:2
Reviews:
·Verizon Online DSL
·RoadRunner Cable
·Comcast

Re: i blame

They're a Tier 1 IP proivder, so loop from their POPs is more expensive, but that's where an enterprising ISP would get last mile stuff put together.

Also, cost per month...just look at Telephony Online's article to see their rates. Even paying for a $2000 wireless setup you come out ahead after a short while if you're even close to one of their POPs.

telcolackey5
The Truth? You can't handle the truth

join:2007-04-06
Death Valley, CA

Cogent data vs. Internet data

People should think long and hard before they assume what Cogent is seeing in their business is what the industry is experiencing as a whole
--
"Believe only half of what you see and nothing that you hear." - Dinah Craik

espaeth
Digital Plumber
Premium,MVM
join:2001-04-21
Minneapolis, MN
kudos:2
Reviews:
·Vitelity VOIP

Re: Cogent data vs. Internet data

Very, very true. It's important to keep in mind that the majority of the other carriers didn't just piss of their subscriber base by segmenting Internet reachability over a peering dispute.

There's been many large Internet hosting data centers who have dropped their Cogent connections over that stunt.

pende_tim
Premium
join:2004-01-04
Andover, NJ

Reached the end of the internet.

No more to see?

»bw.org/end/


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