We have the same picture there.
If we have 1000 kilimoters back-bone, we include the cost of this
back-bone into our prices, and sell 64K for (for example) 100bokazoids.
If small ISP crinix opens free-of-chsarge peering with us, he must not
include the cost of back-bone into their prices, and they sell 64K for
This mean we can't allow free-of-charge peering with them.
On the contrary.
You can reach many cities, and manysets of customers with that 1000 km of
backbone. The other guy cannot do so, and thus is inherently limited in his
abilities to serve those same markets.
You therefore inherently have more opportunity in the market (and more cost).
If you did not think this was true, why did you build that 1000 kilometer
backbone? Nobody FORCED you to do so, and to try to say "well, now the REST
of the Internet gets to pay for MY business decisions" is extortion, pure
You wish to twist around the logic to say that you "can't" peer for free
with the other provider involved. Baloney. Let's look at this from another
angle -- the one that matters.
I'm your customer. I want to talk to one of that other provider's customers
across town, and both of you are at MAE-East-Buttafuco. You want to charge
the other provider to peer based on traffic (settlements). He does not want
to charge you, because he thinks you both get equal value (you both have a
customer involved who IS paying each of you, respectively) from the bilateral
He refuses to pay or establish a transit connection.
The EFFECT is that you screw ME. I'm paying YOU.
The second-order effect is that you LOSE me as a customer, because when I
can't reach that point and call your NOC, what are you going to tell me?
That the other provider won't pay you? My answer is "*I* am paying you,
and *I* want to talk to that network. Either provide the access or I will
find a supplier that will AND STOP PAYING YOU."
Now you have fewer customers to pay for that 1000 km backbone.
Soon, if you keep it up, you won't have ENOUGH customers to pay for that
1000 km backbone. In fact, each customer who you screw and walks raises the
pressure on you to try to get others to pay you to peer -- and increases the
likelihood that you'll be told to stuff it time and time again.
You're in a feedback loop which will lead to the destruction of your
We're supposed to be running the INTERNET here, not the Balkan-net.