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London Internet Exchange Cuts Fees

Posted: 09th Aug, 2005 By: MarkJ
The London Internet Exchange (LINX) has cut the costs of key connection facilities (1Gb and 10Gb Ethernet ports on its switches) by 15%. The move should benefit its members (owners), which consist of more than 180 ISPs and content service delivery providers.

In an email to members LINX chief executive John Souter says: "This follows an internal review of our financial situation which shows that we are ahead of budget at present, due in part to the fact that we are growing faster than the assumptions made in the summer of 2004.

"The board considers that we are in a strong position, with good reserves and better than expected growth. As a mutual association, we should reduce prices whenever a suitable opportunity presents itself.
"

Peering (the connection of networks to allow traffic to move from one to another) is a significant expense for ISPs.

LINX sales and marketing manager Vanessa Evans said: "LINX's lower pricing comes at a time when many ISPs are seeking to attract new customers through lower prices for broadband services. It offers them an opportunity to cut costs in an increasingly price-competitive market for end users."

Internet traffic at LINX is now over 82 gigabits per second at peak times - more than 33 per cent higher than at the same time last year - and LINX's membership has grown by more than 20 per cent over the same period to a total of 180 organisations.

Earlier this year (February 2005) members at LINX's annual general meeting were told that, despite cuts in LINX's membership fees and prices for its services in 2004 and expenditure of more than £700,000 on new equipment, the organisation was able to increase its reserves to around £2.7 million.
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