North American Network Operators Group

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  • From: Mike Leber
  • Date: Fri Aug 21 23:55:48 1998

On Fri, 21 Aug 1998, Karl Denninger wrote:
> 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.

Since I don't have Michael's original post, I'll just respond to this
quoted portion:

And any suitably informed party to a peering arrangement like this can
simply offer free hosting to search engine crawlers until they are
extracting the desired amount cash from their peer via settlements.

HECK with peering agreements like this, you could PAY search engine
crawlers to host with you.  :)



ps.  If it isn't complete obvious at this point, the moral of the story is
that if you decide to pay people for any measure of traffic flow you have
given them incentive to provide you with exactly what you want and they
will make sure you end up paying them. 

pps. In otherwords, if it involves money you can't help incentivizing some
form of behavior.

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