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Re: a question about the economics of peering
#include <standard.disclaimer.h> On Fri, Nov 30, 2001 at 11:52:28AM -0500, Alex Rubenstein wrote: > 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). This is/was the case for some of my previous employers. We operated regional networks and persued regional peering @ AADS amongst other places to reduce the cost of upstream connectivity.. primarily to interconnect with a number of the .edus and "easy-to-peer-with" people because we could save costs. We typically figured out/guessed at the bandwidth usage/savings with flow stats or other means and were generally correct. > 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. I wouldn't say a premium, but it's generally speaking nicer to have a more direct connection. I persued ethernet handoffs in various regional CLEC spaces with some of the other local ISPS at times but they typically didn't have bgp out to the edge (or we didn't have it there) so it wasn't easy to do so. > Essentially, he said that paying more for peering that for transit is > typical, and to be expected, and most people accept this. If it's cheaper to buy transit than to show up at an exchange point why would it be worth it? Then you can use your SLA to your advantage. Get a few free months possibly depending on how your upstream operates their network and how they do their SLA. Plus having someone you can call and open up tickets about congestion, etc.. where if you peer with the network that has the congestion and there is no money changing hands there is not a lot of incentive for them to fix it just for you. Use your account manager to your advantage IMHO and work to get good quality service out of your network. Or get some money back or a discounted service then work on showing up at the various exchange points, IMHO. - Jared -- Jared Mauch | pgp key available via finger from [email protected] clue++; | http://puck.nether.net/~jared/ My statements are only mine.