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Re: peering charges?

  • From: Daryn D. Fisher
  • Date: Sun Jan 26 19:51:21 1997

On Sun, 26 Jan 1997, Jonathan Heiliger wrote:

>> What if web site, or content business models change?  What if people deem
>> their content so valuable that besides (or rather than) charging the
>> consumer, they want to charge the network provider access to the content?
>> (ala MTV)

>MTV is great evidence for the argument that there is no single answer.
>Some cable networks pay to be placed on local cable systems, some are paid
>for being on there.  The cost of content for a cable provider might be
>significant, or it might cancel out to nil.

>Networks will charge if they can get away with it.  If you don't like it,
>then don't pay.

Doesn't quite work this way:

	It depends on the customer base (w/ cable TV/DSS/ect.).  If TCI has an installed base large enough, content providor (MTV) will pay to have their content.  If I am a new access providor with a relativly small install base, I will need to but content in order to attract my customer base.

The model doesn't quite work the same for the Internet, or does it?

As a small providor I am willing to "buy" peering and transit from the larger (based on customers) providors in order to get/give better access.

The other case for buying transit is to get to a better backbone, but I think that is a different discussion.


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