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« Backfired  

ATLJ
Go Braves
Premium
join:1999-12-24
Atlanta, GA
clubs:
·Comcast Formerly ..

Re: Just pay

I think the issue is that Level 3 has a nice fat profit margin on their links and they don't want to lower it. Cogent is forcing them to lower it in some major markets so they can compete and L3 is pissed off about it so they figure we will try and force Cogent to raise prices by cutting the peering for a few days.

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TheGhost
Premium
join:2003-01-03
Lake Forest, IL
clubs:
·AT&T U-Verse
·Comcast

Re: Just pay

said by ATLJ See Profile :

I think the issue is that Level 3 has a nice fat profit margin on their links and they don't want to lower it. Cogent is forcing them to lower it in some major markets so they can compete and L3 is pissed off about it so they figure we will try and force Cogent to raise prices by cutting the peering for a few days.
How can Congent force them. From what I have read, there was an agreement, it wasn't being kept up from Congent's side, so Level3 cut them off per the contract. Seems like a straight forward case.

ATLJ
Go Braves
Premium
join:1999-12-24
Atlanta, GA
clubs:
·Comcast Formerly ..


2 edits

Re: Just pay

said by TheGhost See Profile How can Congent force them. From what I have read, there was an agreement, it wasn't being kept up from Congent's side, so Level3 cut them off per the contract. Seems like a straight forward case.
I guess force is the wrong word...they are pushing L3 to make a decision on pricing in the markets where they compete. If L3 keeps the same prices Cogent will take a lot of customers from L3 and basically push them to do something ie cut off peering to try and get Cogent to raise prices. If Cogent doesn't raise prices and they keep taking customers from L3 even if Cogent works out something to pay L3 for the peering I would still think Cogent gets the better deal...more customers and more revenue and hopefully for them more profit. Also, there has been no proof from either side what the "agreement" is/was and whether either party broke the agreement in anyway.

Combat Chuck
Too Many Cannibals
Premium
join:2001-11-29
Erie, PA

Re: Just pay

I'm pretty sure peering agreements are pretty much standardized and that a big part of it is that either company can withdraw from the agreement for any reason as long as they give a set number of days warning.
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Forums » Cogent/Level3 Still Squabbling« Backfired  


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