On Wed, May 14, 2014 at 2:27 AM, Roland Dobbins <rdobbins@arbor.net> wrote:
On May 14, 2014, at 3:11 PM, Matthew Petach <mpetach@netflight.com> wrote:
I'm constantly amazed at how access networks think they can charge 2/3 the price of full transit for just their routes when they represent less than 1/10th of the overall traffic volume.
My guess is that from the perspective of the access providers, they aren't selling traffic volume or routes, per se - their view is that they're selling privileged engagement with large numbers of potentially monetizable individual prospects.
For an ad-supported enterprise, that becomes quite the challenge; if the access network has 40M users, but they're all endemic cheapskates that never click on ads, a) is it worth trying to improve connectivity to them? (will better connectivity increase likelihood of clicking, or are they simply cheap to the core, in which case it would be wasted money and effort), and b) would the access network be willing to divulge the demographic nature of their customer base ahead of time ("we have 40M skinflints who will never click on your ads--come pay for direct access to them!"). That "potentially" is quite a big "?" in the equation. ^_^; Are there any real-world models out there for revenue-sharing between
app/content providers and access networks which would eliminate or reduce 'paid peering' (an alternate way to think of it is as 'delimited transit', another oxymoron like 'paid peering', but with a slightly different emphasis) monetary exchanges?
An interesting proposal, to be sure. "I'll pay you a portion of all ad revenue I generate from your users clicking on my ads. If you get users with more disposable income who are more likely to click on my ads, you get more revenue share from me. If you go after the bottom of the barrel cheap users who never click on ads, you end up with no revenue share income." Would be somewhat amusing to have broadband providers sending out notes to their customers "I'm sorry, we're not going to give you the option of renewing your service; you never click on ads, we don't get any revenue share out of you. Go find some other network to sponge off it, you're not worth it for us anymore." ;P Not going to happen, of course, but an interesting thought exercise to contemplate. ^_^;; Matt