On 07/28/14 11:02, Edward Ned Harvey (lopser) wrote:
From: discuss-boun...@lists.lopsa.org [mailto:discuss-
boun...@lists.lopsa.org] On Behalf Of Leon Towns-von Stauber

It's true what one discussion participant said, to a certain extent: the fact 
that
it's Netflix sending all this traffic is none of Verizon's business. Verizon's
direct issue is with Level 3, and normally it would be Level 3 obligated to pay
Verizon; the case for Verizon to pay is nonexistent, AFAICT, based on
traditional arrangements.
As you said, Netflix is already paying Level 3 plenty of money.

Level 3 offered to pay for all of the time and materials to upgrade the peering 
point with Verizon.  Verizon refuses because they want a larger recurring 
payment from Netflix.
Note there is a world of difference between the cost of time and materials for upgrading the peering point, and the ongoing cost of receiving data from Level 3.

As pointed out elsewhere in thread, as the inbound / outbound ratio skews away from 50/50 the per packet cost to the ISP increases. They'll more than recoup those expenses with the data costs as the ratio is likely to skew even further in their favour.

Paul
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