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  • From: Karl Denninger
  • Date: Fri Aug 21 18:21:44 1998

On Fri, Aug 21, 1998 at 01:48:14PM -0700, Michael Dillon wrote:
> On Fri, 21 Aug 1998, Wayne Bouchard wrote:
> > So takeing into account
> > what just happened with Exodus, does this mean that BBN would try to
> > force MCI to buy transit from BBN?
> No. It means that BBN would bill MCI for the transit component of the
> traffic exchange that would be measured and priced by an industry agreed
> measurement methodology and pricing scheme. All peering agreements would
> be the same in this scenario. Once you get accepted as a peer then you
> would pay only for the transit that you use that is outside the accepted
> rule of thumb for balanced peering which could be somthing like a 1.5:1 or
> 2:1 traffic ratio at the exchange point. Presumably, a pair of peers like
> MCI and BBN would agree to settle these bills on an aggregate basis so
> that MCI could pay a $2000 peering charges bill from BBN by offseting it
> against a $1500 bill sent to BBN along with $500 cash.

Why should they?  

In fact, what you're advocating is billing the sender for *solicited data*
from the recipient's point of view!  The end result of this will be
discontinuities in the network - since nobody in their right mind is 
going to allow SOMEONE ELSE to write blank checks on THEIR account, when
they have no means to get that back from the party (since they have
no contract with the other side).

The result?  You connect to a web site and get "XXX is asking us to pay for
what you already bought - please enter you VISA number at the prompt" in the
requestor..... or just a "XXX is being a jerk; go away!"

> However, if both companies have a scalable peering agreement with each
> other, this problem becomes merely a problem of engineering for the
> traffic levels. The payment aspects are settled automatically by applying
> the settlement rules.

You've got the problem backwards Michael.

Karl Denninger ([email protected])| MCSNet - Serving Chicagoland and Wisconsin          | T1's from $600 monthly / All Lines K56Flex/DOV
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