1 Jul
2002
1 Jul
'02
7:18 p.m.
On Mon, 1 Jul 2002, Leo Bicknell wrote:
There is no way for a company to price transit below their peering costs and make money. So the question becomes, is $50/meg too low. I believe so. I think that the companies selling at $50 a meg are in a desperate attempt to get revenue in the door, even if it comes in at a loss. If you've paid $70/meg for a peering connection a loss of $20 is better than not selling, and having a loss of $70.
Reminds me of something a former boss told me. "We lose money on every customer, but we make it up in volume." :-)