Inevitable death, was Re: Verizon Public Policy on Netflix

[baldur.norddahl at gmail.com (Baldur Norddahl)]

On 15 July 2014 17:03, Brett Glass <nanog at brettglass.com> wrote:

> At 06:49 AM 7/15/2014, Baldur Norddahl wrote:
>
> >Ah but they are charging you for it. You are paying approximately 40x as
> >much for your bandwidth as you should be (you said you paid 20 USD/Mbps -
> >an outrageous rate). You have a link to a place where you can buy 1 Gbps
> >flatrate for USD 500 per month, so why aren't you?
>
> Because I'd be charged at least as much per Mbps for raw transport as I
> am paying now. (I look at pricing every quarter to see if I can do
> better. Because I'm rural it has not happened.)
>

If that is the case, how would peering with Netflix help you any? You would
still pay for transport to your site. Or do you expect Netflix to also pay
that? Together with Google for YouTube, Hulu for their share etc? It just
does not work that way.

I took a look at your plans at http://www.lariat.net/rates.html. You use
the Netflix brand in your advertising (in the flyer) but none of your plans
are actually fast enough to provide Netflix service (up to 6 Mbps per
stream for Super HD). I think you need to rethink a few things if you want
to stay in business. I am sitting here on a 70 Mbps ADSL, Cable is often
100+ Mbps and my own ISP is selling 1000 Mbps service. Selling 1 Mbps is
just not going to do it going forward, not even in rural areas.

I can say how we solve the backhaul problem. We only lease dark fiber and
then put our own 10 Gbps equipment on it. We can upgrade that any day to
40G, 100G or whatever we need, without any additional rent for the fiber.

Given your expertise seems to be wireless links, you could also backhaul
using Ubiquiti Airfiber: http://www.ubnt.com/airfiber/airfiber5/

Regards,

Baldur