Cogent: IP Transit Strategy, Competitive Positioning & Peering
Former Senior Director of Product Management at Lumen
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Cogent: IP Transit Strategy, Competitive Positioning & Peering(July 22, 2024)
Former Senior Director of Product Management at Lumen
Interview Transcript
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Their IP transit business, which has been very successful over a long span of time. To what do you attribute this success?
Schaeffer's shrewdness really stands out. He entered the business about 20 years ago through a fire sale of some assets. What I think is fairly brilliant is how he positioned himself to reach a critical mass of customers, which they've maintained for about five to 10 years now, establishing themselves as a truly global carrier. To achieve this, he undercut the market. He pitched to customers that they should choose his services because they would be cheaper than any other provider, encouraging them to send their business and traffic his way. For any traffic issues, customers were advised to use their more expensive upstream providers. This strategy effectively got his foot in the door with many customers and angered the competition, as it left them handling the most difficult traffic.
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