North American Network Operators Group Date Prev | Date Next | Date Index | Thread Index | Author Index | Historical Re: a question about the economics of peering
> > Today, I was approached by *unnamed-ethernet-extension-company*. They > extend ethernets between several US and UK peering exchanges. > > While speaking with them today, thier engineer and I got into a little bit > of a disagreement as to why people peer with each other at public exchange > points. My belief is that generally speaking, networks meet at public > exchange points (such as MAE-*, LINX, AMSIX, AADS, etc) is to exchange > traffic with each other more economically (read: save money). > > His belief is that people will pay a premium to get to an exchange point, > because it's worth paying a premium to have 'less hops' between two > networks. The problem with this idea is that public exchange points need to be *avoided* when they get too congested. People may start out trying to minimize number of hops, but I think they eventually try to minimize total latency. > > Essentially, he said that paying more for peering that for transit is > typical, and to be expected, and most people accept this. > > Whats the common opinion on this? > > >
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