CloudFlare Peering Blog
Interesting article from CloudFlare... http://blog.cloudflare.com/the-relative-cost-of-bandwidth-around-the-world/ While NZ isn't mentioned I'm picking we get lumped in with Australia for which they have this to say... "Australia Australia is the most expensive region in which we operate, but for an interesting reason. We peer with virtually every ISP in the region except one: Telstra. Telstra, which controls approximately 50% of the market, and was traditionally the monopoly telecom provider, charges some of the highest transit pricing in the world — 20x the benchmark ($200/Mbps). Given that we are able to peer approximately half of our traffic, the effective bandwidth benchmark price is $100/Mbps. To give you some sense of how out-of-whack Australia is, at CloudFlare we pay about as much every month for bandwidth to serve all of Europe as we do to for Australia. That’s in spite of the fact that approximately 33x the number of people live in Europe (750 million) versus Australia (22 million). If Australians wonder why Internet and many other services are more expensive in their country than anywhere else in the world they need only look to Telstra. What's interesting is that Telstra maintains their high pricing even if only delivering traffic inside the country. Given that Australia is one large land mass with relatively concentrated population centers, it's difficult to justify the pricing based on anything other than Telstra's market power. In regions like North America where there is increasing consolidation of networks, Australia's experience with Telstra provides a cautionary tale."
Keep in mind that this refers to "Benchmark pricing" with $10 being the
benchmark for the USA.
Do your own math and draw conclusions from that extrapolation :)
Macca
On Mon, Nov 3, 2014 at 7:47 AM, Dean Pemberton
Interesting article from CloudFlare...
http://blog.cloudflare.com/the-relative-cost-of-bandwidth-around-the-world/
While NZ isn't mentioned I'm picking we get lumped in with Australia for which they have this to say...
"Australia
Australia is the most expensive region in which we operate, but for an interesting reason. We peer with virtually every ISP in the region except one: Telstra. Telstra, which controls approximately 50% of the market, and was traditionally the monopoly telecom provider, charges some of the highest transit pricing in the world — 20x the benchmark ($200/Mbps). Given that we are able to peer approximately half of our traffic, the effective bandwidth benchmark price is $100/Mbps.
To give you some sense of how out-of-whack Australia is, at CloudFlare we pay about as much every month for bandwidth to serve all of Europe as we do to for Australia. That’s in spite of the fact that approximately 33x the number of people live in Europe (750 million) versus Australia (22 million).
If Australians wonder why Internet and many other services are more expensive in their country than anywhere else in the world they need only look to Telstra. What's interesting is that Telstra maintains their high pricing even if only delivering traffic inside the country. Given that Australia is one large land mass with relatively concentrated population centers, it's difficult to justify the pricing based on anything other than Telstra's market power. In regions like North America where there is increasing consolidation of networks, Australia's experience with Telstra provides a cautionary tale." _______________________________________________ NZNOG mailing list NZNOG(a)list.waikato.ac.nz http://list.waikato.ac.nz/mailman/listinfo/nznog
On Mon, Nov 03, 2014 at 09:47:44AM +1300, Dean Pemberton wrote:
Interesting article from CloudFlare...
http://blog.cloudflare.com/the-relative-cost-of-bandwidth-around-the-world/
While NZ isn't mentioned I'm picking we get lumped in with Australia for which they have this to say...
"Australia
Australia is the most expensive region in which we operate, but for an interesting reason. We peer with virtually every ISP in the region except one: Telstra. Telstra, which controls approximately 50% of the market, and was traditionally the monopoly telecom provider, charges some of the highest transit pricing in the world ??? 20x the benchmark ($200/Mbps). Given that we are able to peer approximately half of our traffic, the effective bandwidth benchmark price is $100/Mbps.
I imagine this ties in with Telstaclear Cloudflare traffic being directed towards Singapore. With that kind of extortion I suppose it is the most rational action. I do wonder with all these new fast UFB plans, and how things like Freeview won't support 4k video any time soon, and tablets and phones passing 1080p recently with computers having a few power users also on such, if there is going to be more and more seggregation between expensive and cheap users in deciding what streams to allow users to view etc. Netflix has already gone through similar things whilst trying to get ISP's to host their own caches. Ben
participants (3)
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Ben -
Dean Pemberton -
McDonald Richards