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Dominican here studying Telecommunications. I was giving a tour to the Datacenter of the 3rd largest telecom company in my country. They were using the Netflix box. I was giving a tour to the 4th largest telecom company, they too had the Netflix box. I was told the 1st and 2nd largest telecoms in the country also had the box.

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My understanding is that Netflix will pretty much subsidize the cost of the CDN box to nearly any ISP above a certain minimum traffic level ingress from Netflix.

Great model to attack the incumbent [transport / transit] carrier costs - end run around the middle-men and drop your CDN boxes directly at the edge (last-mile) ISPs.

ISP here, the netflix cache appliance boxes (a single 1RU server is the minimum) are free, but you have to provide rack space, power and cooling for them. For an ISP in a place like a caribbean island it's a great idea because their upstream/IP transit rates are significantly higher than in the US48 states.

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