On 18 mei 2011, at 12:06, Leigh Porter wrote:

> Well it depends if Netflix pay for the bandwidth they use or if they get
> it all for free with non settlement peering.

The whole point of peering is that both sides benefit. A bit like one bringing 
the traffic to the half way point and the other taking it the other half of the 
way.

Remember that all bits are paid for by the customers on both sides.

> If, suddenly, your business
> model breaks because of a huge demand for high bandwidth services by
> your customers then either you need to charge your customers more or
> Netflix (or whoever) need to share the pie.

Anyone who builds an internet-related business model without taking into 
account the bandwidth use graph going straight from bottom left to upper right 
has no business being in this business. So charge your customers more if you 
have to.

But charging third parties for the privilige of being able to send them the 
data your customers, who are already paying you, are trying to retrieve will 
turn the internet into the next cable or phone network where innovation happens 
within the confines of what the network owners feel comfortable with. In other 
words, the end of the internet as we know and love/hate it today. Don't 
slaughter the goose with the golden eggs.

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