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On Dec 1, 2016, at 10:42 AM, Jason Hanke <[log in to unmask]> wrote:
> 
> > If we’re going the annual route - any reason/logic behind why the 20g -> 80g range seems to carry a disproportionate amount of the fee load?
> 
> The networks in this range are moving the bulk of the traffic on the IX

Yes, but they are also providing the most value to the IX for all members. 

I think we need to be agnostic about how many ports a member has or how much traffic they are moving. I still think this fee structure unnecessarily classifies a group of the members into paying more on a $/gbps ratio, which doesn’t make sense.

Steve’s logic, in his email, makes way more sense to me, and is the totally agnostic - simplify this into a fixed port level fee, and done.

1Gbps=$35/Year (although, I’d argue that this might as well be free at that point for the 1g members)
10Gbps=$350/Year
100Gbps=$3,500/Year

> > Why shouldn’t all 10g ports just be $250/yr? With this layout, I fear that the “Big Guys” will think you’re dumping the fee load (and downstream equipment cost) onto them by forcing 100g ports at that cost for n x 10g. Seems like being agnostic on a port level  (no matter how many you have) would be a better move.
> 
> Looking at the overall economics to a member the cross connect cost dominates the spend. Specifically when doing lag. If you take the annual fee and convert it to monthly it works out to be about $83 dollars with a $200 cross connect for a monthly total of $283 on a second port.
> 
> For example 4 member 10G lag (monthly):
> 
> Port 1 $200+$21=$221
> Port 2 $200+$83=$283
> Port 3 $200+$83=$283
> Port 4 $200+$83=$283
> -------------------------------
> Total                     $1070 per month
> 
> A single 100G
> Port 1 $200+$250=$450 per month
> 
> This leaves room to cover the incremental 100G optics cost. If the 10G ports were free the 100G would still be a better deal for the big guys.

Right, but you’re leaving out the internal costs for the big guys (or mid tier/small folks even) of router ports.  It’s far cheaper for one of the big guys to light another 10g port, I’d suspect, than add 100g interfaces. Maybe that’s changing, but again, I don’t agree with penalizing folks for adding more traffic to the IX on multiple 10g ports vs single 100g ports. MICE isn’t paying cross connects, so seems like that should’t be part of the equation when we look at it from a fee charging perspective.