- Jan 11, 2005
Going back to the two for one example. If MTN serves 100mb and MWEB serves 50mb, the difference is 50mb. MWEB has to cover the bill to receive the 100mb before peering. To make it real, lets say its R1000 per mbps. If MTN says, at least pay the difference at transit less 50%, it would mean MWEB has to pay for 50mb at 50% of the normal transit cost. This means after peering MWEB only pays 25% of the original R100k they were paying or in other words R25k after peering. MWEB received a 75k benefit out of the deal. MTN on the other hand where paying 50k for 50mb. After peering this 50k cost is written off and they receive the R25k difference fee, which equals to a R75K benefit to MTN.
Where is MTN's 100mb coming from? From content providers who have already paid MTN for the 100mb.
Where is MTN's 100mb going to? To the MWeb customers who have already paid MWEB for the 100mb.
Where is MWeb's 50mb coming from? From content providers who have already paid MWeb for the 50mb.
Where is Mweb's 50mb going to? To MTN customers who have already paid MTN for the 50mb.
Both MTN and MWeb have been paid for the 150mb of traffic.
There is no reason on this good earth why MWeb and MTN need to exchange one single cent.