How to choose a transit provider?

Mike Hammett wrote:

Usually, DIA (as transit delivered to a customer) is more expensive than transport + transit + small colo
(1U\2U stuff) + IX... at least as observed by many of my brethren.

  Is this really true in the general case?

  Adding colo and IX to transport and transit involves at least one additional cross connect and an IX port fee. This is likely to push the total above the pure DIA price.

  However, regardless of how the numbers pencil out, this isn't really a fair comparison. For small ISPs, the yardstick against which adding an IX to the mix is usually measured against is the marginal cost of IP transit. Given that the cost of transport is fixed, is it more economical to buy more IP transit or to join an IX?

  Transit being so cheap means that joining an IX isn't always so enticing from a financial perspective, although there are other non-monetary benefits.

  I certainly subscribe to the notion that transport + transit is usually less expensive than DIA, but this does depend on the market and location.


Of course YMMV.

I’m speaking from the perspective of ISPs between say 300 and 10k customers. I’m knee deep in that community.

I’m also generally speaking of facilities that don’t have astronomical cross connect charges (so not Equinix, DRT, etc.). In some places, the cross connect cost is nominal, so we just cover it in the IX fee.

... and the type of customer.

DIA for a high-value "Enterprise" customer (think of a large
conglomerate) is typically more costly than DIA for a low-value
"Enterprise" customer (think of a family-owned travel & tour company).
The large global ISP's are making more money from "enterprise" business
than typical wholesale/transit services. This can support the idea that
DIA can be pricier than transit.


thanks for all feedback, I have tried to summarize my thoughts in a video, hoping this is useful set of notes

thanks everyone watching the video, working on some more new ones. I am also working on a ranking system for transit providers. The way ranking will work is going to be limited to a Metro

Do you guys have any recommendations what technical aspects to look for when ranking ISPs? it’s quiet hard to rank them fairly without having their routing table views, i think, please let me know your thoughts on this and any recommendation is welcome.