100 likes | 237 Views
Economic Differences Between Transit and Peering Exchanges Keith Mitchell Chief Technical Officer NANOG 25 10th June 2002. Definitions. IXP ( = IPP + ITP) Internet eXchange Point IPP Internet Peering Point ITP Internet Transit Point. The Evolving Interconnect Market.
E N D
Economic Differences Between Transit and Peering Exchanges Keith Mitchell Chief Technical Officer NANOG 25 10th June 2002
Definitions • IXP ( = IPP + ITP) • Internet eXchange Point • IPP • Internet Peering Point • ITP • Internet Transit Point
Evolution of Peering and Transit • Paid peering • fixed connection fee • fixed recurring charge • Settlement-based peering • Partial routing based transit • Short-term transit contracts • demand exists • Changing degrees of multi-homing • Decline of bandwidth brokers • Emerging transit aggregators
What Are Optimal Transit Arrangements ? • How many transit providers ? • 1 is not resilient enough • 4 is probably too complex • use bandwidth brokers or transit aggregators ? • Do they have a stable future ? • How to avoid getting locked in to high prices ? • How easy is it to change providers ? • Best insurance is to be able to have flexible interconnect arrangements with choice of providers
IPP vs ITP Differentiation • Traditional IPPs do not offer SLAs • Supporting an SLA is however a pre-requisite for most transit sales • Some traditional IPPs (e.g. in Europe) explicitly prohibit transit • enforcement and rationale unclear ! • Bandwidth brokers are not the same as ITPs • ITP acts as facilitator, not principal • There is quality as well as price differentiation between transit providers, it is not a commodity
Ways to Facilitate Transit AND Peering • Ensure contact details for all participants available • Publish peering policy information • Publish Transit commercial terms • Transit Quotation/Peering request facility • via standardised e-mail contacts or web form • Connectivity comparison tools • e.g. “Collector”, “Accumulator” routers • number of routes, IXPs, peers per participant • LookingGlass-type queries, statistics, graphs
Advantages of ITPs • Easy to compare similar offerings from different providers • Easy sales lead generation for suppliers • Peer pressure on suppliers to provide best deals and service • Encourages differentiation of offerings • Direct revenue generation from IXP’s services • Potentially sell transit this way to corporate/enterprise as well as ISPs
IXP Neutrality Principles • Do not move traffic between cities or countries • Do not make exclusive arrangements with: • ISPs • Carriers • CoLo Providers • Do not provide IP transit routing • Do not take share of ISPs’ transit revenues • Do not act as principal in commercial agreements between customers