North American Network Operators Group

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  • From: Unknown
  • Date: Mon May 22 23:40:39 2006

Looking at it from a higher point of view, there is the problem
of many geographically separated exchange points where a there
are sets of providers who cannot talk to each other because
there is no common exchange point.  However, unlike in North
America, the cost of even relatively small amounts of bandwidth
is still very high for trans-oceanic capacity.  This results in a market
opportunity for people who can aggregate (and likely oversell)
that expensive capacity to the disjoint sites.

There is the issue of keeping customers happy, as has been mentioned,
but salami tactics work nicely.  In fact, when dealing with expensive
transoceanic capacity, it works better, especially when customers
are presented with the option of subsidizing (through increasing
customer fees) their routes being presented to a small network
in America who refuses to pay for their share of the transoceanic
capacity.

Finally, there's the third approach.  It might be workable,
but at some point Europeans and Asians will tire of always increasing
the amount of money they put into transoceanic circuits and start
becoming either customers of bigger, cheaper providers (or members
of consortia or associations which accomplish similar cost-savings)
or start coming to the same understanding: access to trans-oceanic
capacity while it continues to be hiddeously expensive should be
paid for at both ends, since both sides benefit.

This has been seen to some degree in the past; there are a number
of cases where a relatively unsaturated high bandwidth line was
made available only conditionally -- one had to be a research
network or had to be a friend of someone or other in order to use
the big pipe otherwise one would use the much more saturated thinner
pipes across the oceans.  Seeing messages fly about saying, "Dear
brand new AS 8888, if you pay us 200 ECU per month  to cover our
costs we will carry your routes across the nice fat pipe between
our popular network and MAE-EAST, otherwise good luck finding
acceptable (or any) transit bandwidth" (only more polite, of course)
will not surprise me.

So, the answer to the question is, yes, you should be concerned
about performance issues, and yes, you should be working on a tractable
scalable engineering plan for both North American and intercontinental
connectivity, and this should take into account other people's
real and perceived costs.  

In other words, kids, the increasing number of root nameservers
outside the U.S.A. is a sign that the Internet is internationalizing.
Engineer for that now, or you're probably in for a bumpy ride as
various governments including your own stop subsidizing your 
connectivity elsewhere.

	Sean.
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