Cogent and the Peering Ecosystem

Cogent Communications (CCOI) is best known for cheap bandwidth and peering controversies, including several with Level 3. In these peering spats, Cogent has traditionally been the one being "de-peered." But last week Cogent apparently ended its peering relationships with several UK providers, which prompted an interesting analysis by Todd Underwood on the Renesys blog about Cogent's evolution as a company:

If Cogent is pruning small peers as part of such a longer term strategy, that means that they've reached the early adulthood of their network. ... If Cogent is settling down into its corporate middle age, interesting things are afoot. Cogent has long held the role of wacky, freewheeling, young whippersnapper—the new kid on the block willing to undercut everyone's prices, maybe while cutting a few corners on coverage and network reliability, but not so much so that its customers aren't happy for the deal. That role has been one of the big drivers pushing IP transit prices down. Someone has to be the "low price leader" and for the past several years, that has been Cogent. If these depeerings are not isolated events, but rather part of a new strategic direction for Cogent, that could spell changes in pricing and competitive dynamics.

Cogent's pricing has made it a significant factor in many Internet business plans, so it bears watching.

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By Rich Miller April 30, 2007 | Permalink | >Get Posts By E-mail

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Cogent and the Peering Ecosystem

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