Re: Cogent

JC Dill <[email protected]>
Newsgroups gmane.org.operators.internet-access
Message-ID <[email protected]>
Patrick W. Gilmore wrote:
> On Aug 20, 2008, at 6:30 PM, JC Dill wrote:
>> Jawaid Bazyar wrote:
>>> Their network may be great, but customer service is important too. 
>>> And playing chicken with other backbones in a way which disconnects 
>>> your own customers from Level3, as Cogent did, to then provide no 
>>> credit to your own customers but to instead offer free service for a 
>>> year to Level3 customers, is indicative of management that doesn't 
>>> give a *** about its own customers.
>>
>> Hmmm.  I don't quite see it that way.  IMHO, anyone who doesn't 
>> understand that this type of policy is how Cogent keeps their costs 
>> low and why your own price for their service is lower than the price 
>> you would pay for the same service from other Tier 1s shouldn't be 
>> buying Tier 1 bandwidth, or at least shouldn't be buying it from Cogent.
>>
>> Cogent's game of playing "chicken" with the other Tier 1s keeps the 
>> Tier 1s from forming a cabal of sorts (TINC not withstanding) which 
>> would ultimately up the price for all of us.
>
> That would all make sense if Cogent were the lowest priced provider 
> out there.
>
> Cogent's lowest price offer in 5 of the last 5 years has been higher 
> than at least one "tier one" and frequently multiple tier ones. 

Cogent is reliably "one of the cheapest" Tier 1s even when they aren't 
the absolute cheapest.  Other Tier 1s have to offer low(er) prices 
(comparable to Cogent) to compete.  Without Cogent and Cogent's business 
plan and policy, IMHO the lowest prices offered would be higher than 
they are now.

This is just my opinion, but that's usually how a free market works - 
when the lowest priced service is lost (goes bankrupt or is forced out 
of business with unfair (monopoly) practices, or is bought out) all the 
others raise their rates.

jc
-- 
Eat sushi frequently. - Avi
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