North American Network Operators Group

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  • From: Tuomas Toivonen
  • Date: Thu Aug 27 12:49:57 1998

On Wed, Aug 26, 1998 at 02:41:58PM -0500, Karl Denninger wrote:

> None of this has ANYTHING to do with what the customer has purchased - which
> is TRANSIT TO THE ENTIRE INTERNET.  Not just the parts that someone else
> will pay that same provider to communicate with.

CustA - NetA <-> NetB - CustB. Both customer are _buying_ for transit for the
whole source-destination path, but are _paying_ only for (in this case) half
of it. Customers share the costs, because providing service to each other is
considered beneficial. Therefore networks A and B peer if traffic is roughly
equal or exchange traffic with settlement fees if not.

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