[Hen] FW: Cogent in a jam again, this time with level 3

[Johnson, Bill]

FYI


Bill Johnson
Director of Network Operations - OneNet
Director - Netrad Infrastructure for CASA
President - Oklahoma Distance Learning Association
405-225-9444
cell 405-919=1718
video 164.58.250.185

-----Original Message-----
From: Krugman, Michael [mailto:krugman at bu.edu] 
Sent: Friday, October 07, 2005 9:46 AM
To: discuss at thequilt.net
Subject: RE: Cogent in a jam again, this time with level 3


The attached article from today's Boston Globe echoes a suspicion a few
of us at BU have harbored about past and present troubles between Cogent
and its top tier peers (which I characterize as an embargo or "starve
the spoiler") aimed at forcing Cogent to abandon its aggressive pricing
model. Michael

Excerpt: According to Schaeffer, Level 3 is trying to force Cogent to
raise its prices. Schaeffer claimed that Cogent's prices for bulk
Internet capacity are much lower than those of Level 3, causing its
customer base to grow at a rate of 250 percent a year. ''Level 3
basically said they can't sell at our price point," said Schaeffer.
''They wanted Cogent to stop what they effectively consider a price
war." Schaefer said that Level 3 pulled the plug on peering when Cogent
refused.
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