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IP transit provider charging monthly fee per BGP prefix announcement

juniorrrrrjuniorrrrr Member
edited 3:56PM in General

Hi everyone,

I would like to ask if anyone has seen this before with an IP transit provider.

We have an IP transit service with an eBGP session. The prefixes are originated from our own ASN, through our own router. The provider is only acting as our upstream / next-hop.

None of the prefixes are owned, leased, or provided by the transit provider. They are either our own prefixes or prefixes properly authorized to be originated by our ASN/Router.

However, we noticed that the provider has been charging us monthly fees for each announced /24, under items such as:

“IP addresses pool announcement”
“Subnet rental”

The charge is around USD 10/month per /24. We have been billed for several months.

From my understanding, if we are already paying for IP transit with BGP, announcing authorized customer prefixes should be part of the transit service. I would expect charges for the port, commit, bandwidth, 95th percentile, cross-connect, etc., but not a recurring monthly fee per externally-owned prefix announced over the BGP session.

To be clear:

The provider does not own these IP blocks.
We are not renting these subnets from them.
The prefixes are announced from our ASN and router
The provider is only the upstream / next-hop.
The BGP session is part of the IP transit service.

Has anyone here ever seen this kind of billing before?

Is it common for an IP transit provider to charge a monthly fee per customer-owned/customer-authorized BGP prefix announcement?

We are already disputing the charges and asking for removal from future invoices, plus a refund or account credit for the previous months.

I would appreciate feedback from other providers or network operators.

Comments

  • frct1frct1 Member

    No it's not common. Nothing but a greediness.
    Today's hardware routers able to handle millons of routes. So.. you know what I mean.

  • wdmgwdmg Member, LIR

    @juniorrrrr said: From my understanding, if we are already paying for IP transit with BGP, announcing authorized customer prefixes should be part of the transit service. I would expect charges for the port, commit, bandwidth, 95th percentile, cross-connect, etc., but not a recurring monthly fee per externally-owned prefix announced over the BGP session.

    Have you recommended this pay-per-prefix approach to Cogent yet? They may be interested.

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