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Topic # 151477 27-Aug-2014 08:34
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From http://blog.cloudflare.com/the-relative-cost-of-bandwidth-around-the-world

Australia is the most expensive region in which we operate, but for an interesting reason. We peer with virtually every ISP in the region except one: Telstra. Telstra, which controls approximately 50% of the market, and was traditionally the monopoly telecom provider, charges some of the highest transit pricing in the world — 20x the benchmark ($200/Mbps). Given that we are able to peer approximately half of our traffic, the effective bandwidth benchmark price is $100/Mbps. To give you some sense of how out-of-whack Australia is, at CloudFlare we pay about as much every month for bandwidth to serve all of Europe as we do to for Australia. That’s in spite of the fact that approximately 33x the number of people live in Europe (750 million) versus Australia (22 million). If Australians wonder why Internet and many other services are more expensive in their country than anywhere else in the world they need only look to Telstra. What's interesting is that Telstra maintains their high pricing even if only delivering traffic inside the country. Given that Australia is one large land mass with relatively concentrated population centers, it's difficult to justify the pricing based on anything other than Telstra's market power. In regions like North America where there is increasing consolidation of networks, Australia's experience with Telstra provides a cautionary tale.

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BDFL - Memuneh
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  Reply # 1116233 27-Aug-2014 08:56
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When asked at NZNOG why not a New Zealand POP, Cloudflare was clear: cost because of no-peering with the two largest ISP (Vodafone and Telecom NZ), which command most of the local traffic.

Interestingly though a smaller CDN provider (Fastly) bypassed this by colocating with Trade Me. Unfortunately I think the volume of Cloudflare traffic would not allow this to happen.





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  Reply # 1116242 27-Aug-2014 09:09
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I'm really surprised national transit in australia is $200/Mbps  (presumably USD)

even with the 50% peering they claim,  that would make basically every ISP (except Telstra) massively massively unprofitable wouldn't it? something doesn't seem to add up here.


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  Reply # 1116251 27-Aug-2014 09:17
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freitasm: When asked at NZNOG why not a New Zealand POP, Cloudflare was clear: cost because of no-peering with the two largest ISP (Vodafone and Telecom NZ), which command most of the local traffic.

Interestingly though a smaller CDN provider (Fastly) bypassed this by colocating with Trade Me. Unfortunately I think the volume of Cloudflare traffic would not allow this to happen.



You mentioned Vodafone in there, I'm guessing you were referring to Telstraclear (Vodafone Blue). Are Vodafone Blue now not peering on APE,WIX,CIX etc as Vodafone Red have always done?

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  Reply # 1116483 27-Aug-2014 13:37
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Obviously Telstra goes out to say they aren't the villains here:

 

 





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  Reply # 1116606 27-Aug-2014 15:42
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I guess Telstra didn't read the article properly which states that the example pricing is all relative.

The important takeaway is that Telstra's pricing is 20x more expensive in Aus compared to providers in other countries.

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Reply # 1116789 27-Aug-2014 19:18
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Eh I find the blog post very meh. It looks like the same type of rubbish we get here "OH MY GOD THEY PAY $X in poor African nation 1 why does it cost so much here!?!?!?

<RANT>

The only way you can do a proper pricing comparison is if you compare everything, and these people are not economists, so you'd have to check the cost of Property, Equipment, Staff, power, Taxes, and the list goes on and on and on and on.

Lets just start launching into articles about how my Egg Sandwich costs more in Auckland than it does at the bakery in X town.


I do not deny there is no reason not to look at the price differentials between countries for telecommunication services, but I'm yet to see ANYTHING that is a proper study just half pie jobs that go "In X place they pay this much and we're around the same size with the same population so it should cost around the same"

</RANT>

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  Reply # 1116801 27-Aug-2014 19:48
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Great thing about Aussie is that you don't have the international/national transit split like you do in NZ.


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  Reply # 1116815 27-Aug-2014 20:11
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Lazarui: The only way you can do a proper pricing comparison is if you compare everything, and these people are not economists, so you'd have to check the cost of Property, Equipment, Staff, power, Taxes, and the list goes on and on and on and on.


If this stuff was such an issue I doubt you'd see such a high peering percentage. Seems to me like Telstra simply have no interests in peering when it's such a cash cow for them.




 


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  Reply # 1191585 8-Dec-2014 13:58
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freitasm: Regardless, Cloudflare NZ is live now...




IP Address
162.159.243.82
Ray ID
195503889edb0b08
Location
Sydney, Australia (SYD)

Not seeing it just yet?




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  Reply # 1191589 8-Dec-2014 14:07
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michaelmurfy:
freitasm: Regardless, Cloudflare NZ is live now...




IP Address
162.159.243.82
Ray ID
195503889edb0b08
Location
Sydney, Australia (SYD)

Not seeing it just yet?


HTTP_CF_RAY 19550ba7596a04d4-SYD

Seems im still on sydney too.




#include <std_disclaimer>

 

Any comments made are personal opinion and do not reflect directly on the position my current or past employers may have.


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  Reply # 1191595 8-Dec-2014 14:12
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I'm on CloudFlare Sydney too - work ISP is Vodafone, seems to go to Equinox Sydney via Ihug (gi2-20.akl-grafton-bdr1.ihug.net).




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