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Bandwidth prices bands in $/Mbs

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  #1  
Old 05-25-2010, 04:22 AM
Rebecca7 Rebecca7 is offline
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Bandwidth prices bands in $/Mbs


Hi guys,

What price bands would you say are *reasonable* for a new buyer purchasing bandwidth in the USA in $/Mbs for

a) tier 1 - premium, owns their own network
b) tier 2 - purchases bandwidth from tier 1
c) tier 3 - reseller for tier 2

E.g.

Tier 1 - $10-25
Tier 2 - $5-10
Tier 3 - $2-5

Does this question make sense? I have no idea if those loose definitions of the tiers is correct. Any help would be awesome, thank you in advance

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  #2  
Old 05-25-2010, 04:58 AM
VINAX VINAX is offline
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Why are you looking for bandwidth pricing from the carriers? Are you going to colocate your server and get bandwidth directly from them?

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  #3  
Old 05-25-2010, 05:01 AM
Rebecca7 Rebecca7 is offline
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Quote:
Originally Posted by VINAX View Post
Why are you looking for bandwidth pricing from the carriers? Are you going to colocate your server and get bandwidth directly from them?
No, I am looking to rent dedicated servers and some providers quote for unmetered bandwidth in $/Mbs. I am trying to determine which ones are good value.

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Old 05-25-2010, 05:30 AM
ControlVM Technology ControlVM Technology is offline
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Quote:
Originally Posted by Rebecca7 View Post
No, I am looking to rent dedicated servers and some providers quote for unmetered bandwidth in $/Mbs. I am trying to determine which ones are good value.
Not too sure what you mentioned.
Normally provider will not quote you on bandwidth price with unmetered. price only indicate on for total server package.

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Last edited by ControlVM Technology; 05-25-2010 at 05:31 AM. Reason: typo error
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  #5  
Old 05-25-2010, 06:04 AM
JFSG JFSG is offline
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Quote:
Originally Posted by Rebecca7 View Post
No, I am looking to rent dedicated servers and some providers quote for unmetered bandwidth in $/Mbs. I am trying to determine which ones are good value.
Prices varies depending on location and provider. The numbers you receive here may not be accurate for your decision.

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  #6  
Old 05-25-2010, 06:12 AM
swiftnoc swiftnoc is offline
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bandwidth pricing depends totally on both your commitment as your providers commitment to their upstream providers. Tier-1, Tier-2 and Tier-3 has nothing to do with pricing.

Tier-1 providers are settlement free. This is all it says. Tier-2 and up pay for bandwidth one way or the other. Quality has nothing to do with it. There are many Tier-2 providers that have faster routes with less congestion then some or all Tier-1 providers. The Tiers tell you nothing about bandwidth quality. It also tells you nothing about price.

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Last edited by swiftnoc; 05-25-2010 at 06:15 AM.
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  #7  
Old 05-25-2010, 08:42 AM
Rebecca7 Rebecca7 is offline
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roger that @swiftnoc, I wish I understood more about how bandwidth is bought and sold amongst the various providers, do you know of any resources that could help explain? Thanks for your help!

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  #8  
Old 05-25-2010, 10:02 AM
BKerry BKerry is offline
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Dedicated server bandwidth pricing is very artificial and varies greatly between providers even if their own bandwidth pricing doesn't vary.

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  #9  
Old 05-25-2010, 01:04 PM
cresci cresci is offline
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Pricing depends on your commitment level (how many Mbps) and the type of carrier (Tier 1, Tier 2) as well as selling methods of the network (overselling, reselling huge unused commits, or guaranteeing full 100% 24x7 usage) you are purchasing.

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  #10  
Old 05-25-2010, 01:21 PM
swiftnoc swiftnoc is offline
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Quote:
Originally Posted by iptelligent View Post
Pricing depends on your commitment level (how many Mbps) and the type of carrier (Tier 1, Tier 2)
How does the type of carrier affect the pricing? i know Tier 2 providers that are far more expensive then Tier1 providers. I also know Tier 1 providers that beat every other Tier-1 providers on pricing and most if not all Tier-2 providers. On the other hand there are also some very expensive Tier-1s.
The Tier-1 or Tier-2 status has nothing to do with pricing. Commitment level does matter a lot, its probably the most important in combination with your negotiation skills and the sales rep you work with.

While this article is wrong about some parties and actually seems to be missing some large network providers, it is still a good indication who are Tier-1 providers or close to become a Tier-1
http://en.wikipedia.org/wiki/Tier_1_network
Missing Parties like for example Interoute and Telefonica in that article that are either Tier-1 or very close to become a Tier-1

Tier 1 = Network that is settlement free trough peering
Tier 2 = Network that peers but still buys transit to reach some parts of the Internet
Tier 3 = Network that buys all the transit and does not peer.

The Tiers tell you nothing about the quality or the price per megabit of the network.

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Last edited by swiftnoc; 05-25-2010 at 01:35 PM.
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  #11  
Old 05-25-2010, 04:21 PM
cresci cresci is offline
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Quote:
Originally Posted by swiftnoc View Post
The Tier-1 or Tier-2 status has nothing to do with pricing. Commitment level does matter a lot, its probably the most important in combination with your negotiation skills and the sales rep you work with.
Generally, Tier 1s will be more expensive than Tier 2s when compared on the same commitment levels, at least in the US.

On a 100M commit, for example, you can't expect to have Level3 hired directly from them under $10/mo unless there is a special or you are buying from an aggregated reseller (maybe a Tier2 carrier itself, like GTT, Bandcon or Giglinx). Global Crossing is another one that you won't find for under $9/meg. Their usual pricing will be around $15/meg.

Tier 2 carriers on a 100M commit will range between $200-800, mostly depending on network quality.

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  #12  
Old 05-25-2010, 04:43 PM
swiftnoc swiftnoc is offline
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Quote:
Originally Posted by iptelligent View Post
Generally, Tier 1s will be more expensive than Tier 2s when compared on the same commitment levels, at least in the US.
Tiers say nothing about pricing. It is true that many Tier 1 providers will not even consider doing business with someone if they not commit to a very high level of traffic. Same counts for Large Tier-2 providers.

Example.
Pricing USA. Internap (Tier-2) is usually more expensive then most (if not all) Tier 1 providers on say 1 gigabit CDR.

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  #13  
Old 05-25-2010, 04:45 PM
cresci cresci is offline
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Internap is an exception to the general rule (and so is Telefonica).

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  #14  
Old 05-25-2010, 04:52 PM
swiftnoc swiftnoc is offline
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Quote:
Originally Posted by iptelligent View Post
Internap is an exception to the general rule (and so is Telefonica).
There is no such general rule.
Opentransit, TWtelecom, C&W, DTAG, TPSA, PCCW are for example other Tier-2 providers that are more expensive then most Tier-1 providers. There are many more.
It mostly comes down to: commitment, negotiation, location and the sales rep you get assigned that determines the final price per mbps.

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  #15  
Old 05-26-2010, 01:58 AM
greg-moriss-ec2 greg-moriss-ec2 is offline
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Main thing to look for is the way they setup their network.
You can find a provider who has 2 very expensive providers and 1 cheap one but sends a lot of traffic out cheapest one (forced).
You can find providers that do equal path bgp between all upstream providers.
You can find providers that optimize their routes, automatic or manual.

Some providers peer directly with others to reduce costs.
Some do it to improve network performance.

It is important to find out what the host claims and MORE important to verify it.

I have seen with low commit levels $2 to $25+
In most cases you get what you pay for. In some cases its marketing BS.
Ask why their bandwidth is better and verify it.
I used to be with a host many many years ago who claimed the world but their network was crap, internal and the way they setup their upstreams.

So in addition to their upstream and peers watch for internal network setup.

Are switches congested (usually called shared but some host claim dedicated) where you can not use full bandwidth allocated for example.
24port switch with 100mbps uplink to router was what this (crap) host offered me 10mbps Un-metered servers on.
Note if all clients use 50% of bandwidth that exceeds the uplink.

They had a lot of issues so you would see that often, since they were cheap a lot of boxes were not exactly Important to their owner left unattended, all of a sudden all servers would do 10mbps on same switch. Their own website was up, I was down.
When sql slammer hit, downtime was a regular event. Again their site was up, I was down.
Also make sure you are on your own vlan and subnet.

check to see if they are able to stay up if multiple providers fail.
for example in my situation Los Angeles I made sure my host was not establishing connection in 1 building. That would mean if connection to that building was lost or that building had issues with power the provider would be down no matter how many lines they had.

Also make sure they are able to stay online in case of multiple upstream downtime. Some say they are redundant but having 4 GIGE uplinks when you have 2.1Gbps of traffic at peak time is not what I would consider good. You are just betting you do not lose 2 providers during peak hours .

I saw one provider tell my client they are redundant since they only utilize 20% of their network.
It was a new host apparently in MO, they had gotten 1 GIGE link cheap but their redundancy was 2x FE lines.
1xGIGE and 2xFE and you use 250mbps is not redundant enough for me.

It is true that bandwidth prices are lower now, it is also (IMO) true that a lot of crap is being passed as good.
If you see something that is too good to be true, it more than likely is. Just the cost of equipment to provide good network is more than some prices I have seen.

On the flip side, does it really matter. Do you really care to pay premium. In some cases it does not really matter anyway.
I know for SEO uptime matters, for video and voice latency and jitter but if you are running file server (backup) do you care if your server is down 1Hour?

There are handful of providers I really like, 3 of them are big providers. So size also does not matter.

So it all depends on what you need and who best matches your needs.
Price should be a concern but not the only concern.

Good Luck!

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