On Thu, 16 May 1996, Geoff Huston wrote:
Paul,
You can be a vocal as you desire, but ultimately from this part of the globe the dominant factor in any ISP business is the cost of the International Private Lease. This lease cost is approximately 10 times the cost of domestic infrastructure.
Now when you construct an IPL in a competitive environment where do you terminate it? Generally you are loking for an optimal mix of price and functionality. The observation for the AP region today is that the cheapest IPL half circuits for the AP region terminate in the US. Hence Randy's observation. The internal infrastructure within the AP region happens in a second pass, once the primary objective of major connectivity is achieved internal infrastructure can be cost effective if there is internal traffic flow to match.
About the only thing that could hasten regional infrastructure is a drastic revision of the trading practices and expectation of return on investment by the undersea cable investors. Exchange points have little impact per se as they are, in economic terms, a minor aspect of the entire equation.
Exactly. And all the regional governments should realize that the best way of shifting traffic from North America to their region is de-regulating the international telecommunications market, scrapping monopolies and increasing competition among carriers. That will result much more effective than policy-making and verbal "declarations of independence". Enzo