[lug] Rack for colo coop?

[Rob Nagler]

Sean Reifschneider writes:
> It's for 100mbps or 1gbps of bandwidth, not just a port charge for the
> connection to them.  They don't really say exactly what their connection
> from Denver to Sacramento and Denver to Kansas City is.  They imply that
> it's 80gbps delivered over OC192s.

So they can only bring in $2.4M/month (80 x 30) before the pipe
overflows.  I suspect an OC192 to Sacramento is going to cost say
$500K/month.  Costs don't align with revenues.  Something is fishy.
Luckily, Cogent is public, and a quick visit to the SEC yields:

http://www.sec.gov/Archives/edgar/data/1158324/000110465903010367/j1080_10q.htm

Cogent operated at a $16M loss for Q1 2003.  They haven't released the
Q2 results, but I doubt they have suddenly turned around.  They are in
default for $250M to Cisco.  They are desparate to increase their top
line, at any cost, hence the non-market prices.

Cogent had $28M at the end of March.  They are likely to be out of
business by January.

It's a good deal if you can quickly move to an alternative, you don't
become hooked on the bandwidth, and you don't mind hauling servers
around.

Rob