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By Big Telco I imagine they refer to ring companies like T-Mobile Vodafone. My understanding is that they are already paid by the end user [0] but want to be pa
by afiori 3y ago
By Big Telco I imagine they refer to ring companies like T-Mobile Vodafone. My understanding is that they are already paid by the end user [0] but want to be paid more for the incoming (video) traffic.
Cloudfpare claims that in the EU there are mostly two ways for them and Netflix to reach a user
1. Connect to a big exchange where every Telco is connected
2. Directly peer with the Telco at much higher prices
The thing I do not understand is why do Telcos accept lower prices from the exchange.
Is connectivity sold auction-, style? Could t-mobile decide to charge double [1] for use of its infrastructure?
Whatever it happening it is unclear to me why they happen to accept lower prices from one entry point and not another. Are these connections materially different?
[0] end user is well defined in the case of someone whatching Netflix.
[1] by net neutrality they cannot charge Netflix more, but they can charge everyone more.
- andersa 3y ago> The thing I do not understand is why do Telcos accept lower prices from the exchange. They are forced to, if they did not, their users would complain that the internet does not work.
- afiori 3y agoI guess that they would mostly only have collective bargaining power not individual and to use it it might make them an illegal price-fixing cartel.