The next Internet price war has begun and it’s all behind the scenes. Cogent and Level 3 handed off traffic from one network to each other free of charge, until Level 3 said that it was handling too much Cogent traffic. Yesterday Level 3 pulled the plug on Cogent and has increased their pricing based on how much data is transfered. Prices are going up… Go Figure!
Computer technicians scrambled to shore up their networks after Level 3 Communications Inc. refused to accept traffic from rival Cogent Communications Group Inc., rendering large portions of the Internet unreachable by others. The dispute affects roughly 15 percent to 17 percent of the Internet, Cogent CEO Dave Schaeffer said. Cogent’s Schaeffer said Level 3 was simply trying to get Cogent to raise its prices, which at $10 per megabit are far below the market average of $60 or so per megabit.