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Re: UUNET Press Release on Peering

  • From: Karl Denninger
  • Date: Mon May 12 13:37:28 1997

It is obvious that their customers don't want access to those web sites.

I suggest that the parallels are striking here.

Worldcom/MFS run dial services as a CAP in several markets. 

They charge the customer for the DS-1s and dial lines.
Then they get a settlement from the RBOCs in the form of an interconnect
charge for every call the ISPs customers make to the lines.

Following the UUNET principle that "nobody should get the traffic for free",
ISPs should immediately cancel their MFS circuits (for which UUNET is
getting a free ride in the form of being able to collect twice without
justification) and find another CAP which feels that interconnection is
*ALWAYS* to the equal benefit of both parties.

We are initiating cancellations of all our DS-1 dial circuits from MFS
within the next 180 days.

Good bye UUNET.  I anticipate that this will cost you several hundred
thousand dollars in those settlement monies annually, and I urge all other
ISPs to do likewise.

--
-- 
Karl Denninger ([email protected])| MCSNet - The Finest Internet Connectivity
http://www.mcs.net/~karl     | T1's from $600 monthly to FULL DS-3 Service
			     | 99 Analog numbers, 77 ISDN, http://www.mcs.net/
Voice: [+1 312 803-MCS1 x219]| NOW Serving 56kbps DIGITAL on our analog lines!
Fax:   [+1 312 803-4929]     | 2 FULL DS-3 Internet links; 400Mbps B/W Internal



On Mon, May 12, 1997 at 09:39:51AM -0700, Kent W. England wrote:
> UUNET issued a press release today on their peering strategy. It is located
> at:
> 
> http://biz.yahoo.com/bw/97/05/12/wcom_x000_1.html
> 
> The gist of the press release is that UUNET will peer with anyone who has 
> "a national network with a dedicated, diversely routed DS-3 (or faster)
> backbone, and which will connect to UUNET at DS-3 or greater speeds in at
> least four geographically diverse locations." UUNET is being taken
> advantage of by "small regional ISP's and companies which provide ``web
> server farm'' services rather than Internet networking." and must protect
> itself from abuse of its backbone.
> 
> Sounds like they are backing off, since this line of reasoning (modulo
> bandwidth and number of interconnects) has been standard procedure for all
> the national backbones since the end of the NSFNET. However, if you read
> the fine print about "a dedicated diversely routed DS-3 or faster backbone"
> that lets out all the "no money down instant backbones" that many smaller
> national ISPs and web farmers have built of late.
> 
> Are they still insisting on NDAs before talking?
> 
> --Kent
> 
> -------------
> Monday May 12 8:32 AM EDT 
> 
> Company Press Release
> 
> UUNET details peering strategy
> 
> Changing Internet economics prompt new policy
> 
> FAIRFAX, Va.--(BUSINESS WIRE)--May 12, 1997--Stating that the economics of
> the Internet have changed radically in the past few years, UUNET
> Technologies Inc., the world's largest Internet service provider and a
> subsidiary of WorldCom Inc. (NASDAQ:WCOM), today detailed its policy
> regarding peering with other ISP's. 
> 
> The company said it will continue to peer with ISP's that can route traffic
> on a bilateral and equitable basis. However, UUNET will no longer accept
> peering requests from ISP's whose infrastructures do not allow for the
> exchange of similar traffic levels. 
> 
> ``A few years ago all ISPs were generally the same size and used each
> other's infrastructures to a more or less equal extent,'' said John
> Sidgmore, president and chief executive officer of UUNET. ``Today that
> situation no longer exists and consequently there are many cases where
> peering is not appropriate.'' 
> 
> One of the major principles of UUNET's policy is to peer with ISP's that
> operate a national network with a dedicated, diversely routed DS-3 (or
> faster) backbone, and which will connect to UUNET at DS-3 or greater speeds
> in at least four geographically diverse locations. Peering is an
> arrangement whereby ``peers'', or ISP's of similar size, route each others'
> traffic to destinations on their respective networks. Because the flow of
> data and use of infrastructure are anticipated to be approximately equal in
> both directions, no money changes hands in peering relationships. 
> 
> UUNET said it has received numerous peering requests from small regional
> ISP's and companies which provide ``web server farm'' services rather than
> Internet networking. These are, in effect, requests for UUNET to provide
> national and international data transport, as well as connectivity and
> support services, to companies which do not have the ability to provide
> similar services in return. Essentially, companies requesting peering in
> these situations are seeking to use UUNET's network for free, after UUNET
> has spent hundreds of millions of dollars to create its infrastructure. 
> 
> ``This is a purely economic decision,'' Sidgmore continued. ``We are 100
> percent in favor of interconnection and won't deny access to anyone.
> However where the use of our respective infrastructures would clearly be
> imbalanced, we cannot reasonably be expected to provide our transport,
> route management and support resources at no charge.'' 
> 
> For those ISP's, or web server farms, seeking transport and route
> management services from UUNET, but which do not qualify as peers, UUNET
> offers wholesale connectivity services beginning at monthly rates of $2,000
> for T1 connections and $6,000 for fractional T3 connections. UUNET
> currently provides such wholesale connections to several hundred ISP's. 
> 
> UUNET's network consists of a global backbone with multiple DS-3 (45
> million bits per second) links on all major routes. It has an aggregate
> capacity well in excess of 5 gigabits per second. UUNET recently announced
> it was making a $300 million investment in its infrastructure which would
> quadruple dial capacity and raise the speed of backbone routes to OC-12
> (622 million bits per second), dramatically increasing capacity. 
> 
> ...
> 
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