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Telegeography's transit prices are inflated. Real market prices start at $1/Mbps/month.

Joonas Kuorilehto

An ISP that would have 20 Gbit/s of transit (not access) bandwidth would likely have some sort of content caching setup with Youtube. Also, large content providers are generally peering a lot.

So I'm guessing to get 20 Gbit/s transit traffic, the amount of access traffic => number of subscribers needs to be substantially higher still.

Amount of peering depends on the area of course. Peering would probably be more common in Europe than US, for example.


1. I agree with Zed: prices are at or below $1 especially at these volumes. By the end of 2012 we will be at 70 - 60 cents

2. You peer at least 80% of your traffic away at about 15/ 20 cents per mb and have 20% at $1 giving average cost of 32 cents.

Conclusion: IP Transit cost is no longer the issue

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