Impact on
Network Architecture and Economics
Internet Peering
Brough Turner
Founder & CTO, netBlazr Inc.
Today’s Network of Networks
12 March 20142
Billions of Internet users
Tens of Millions of Networks
Access ISPs
IXP
IXP
Bac...
12 March 20143
1991
 NSF lifts restrictions on commercial
use
 SURFnet, PSInet & AlterNET form
CIX exchange
12 March 20144
1993 Plan – 1995 Reality
12 March 20145
12 March 20146
AGIS, ANS, BBN, CERFnet,
MCI, PSInet, SprintLink
NAP NAP
12 March 20147
AGIS, ANS, BBN, CERFnet,
MCI, PSInet, SprintLink
NAP NAP
De-peering
  UUNET – April/May 1997
  MAE-East FDDI shutdown – Feb 2001
  Cable & Wireless – May 2001
  Sprint – gradu...
Donut Peering
12 March 20149
Tier 1 ISPs
Access ISPs
Tier 2 ISPs
Cable Co’s
Large, savvy
content providers
Content
provide...
Donut Peering
12 March 201410
Tier 1 ISPs
Access ISPs
Tier 2 ISPs
Cable Co’s
Large, savvy
content providers
Content
provid...
Donut Peering
12 March 201411
Tier 1 ISPs
Access ISPs
Tier 2 ISPs
Cable Co’s
Large, savvy
content providers
Content
provid...
CDNs emerge
12 March 201412
IXP IXP
CDN
NOC
CDNs emerge
12 March 201413
IXP IXP
CDN
NOC
Turbulence
12 March 201414
  UUNET (Alternet)  MFS  Worldcom Verizon
  ANS  AOL "
  SprintLink  Sprint
  BBN  G...
ISP1
Peering vs Transit
12 March 201415
Backbone
ISP2
ISP
U
U
U
U
ISP ISP
ISPx
Transit
ISP1
Peering vs Transit
12 March 201416
Backbone
ISP2
ISP
U
U
U
U
ISP ISP
ISPx
Peering
Transit
ISP1
Peering vs Transit
12 March 201417
Backbone
ISP2
ISP
U
U
U
U
ISP ISP
ISPx
Peering
Transit
Peering Technology
  Internet Protocol –
  IPv4 == 98% of all traffic
  IPv6 == ~2% of traffic
  Border Gateway Protoc...
Border Gateway Protocol
12 March 201419
ISP1
ISP2
A
B
C
My Edge Router
Border Gateway Protocol
12 March 201420
ISP1
ISP2
A
B
C
I can handle traffic
for A in 3 hops &
for B in 1 hop
My Edge Rout...
Border Gateway Protocol
12 March 201421
ISP1
ISP2
A
B
C
I can handle traffic
for A in 3 hops &
for B in 1 hop
My Edge Rout...
Border Gateway Protocol
12 March 201422
ISP1
ISP2
A
B
C
I can handle traffic
for A in 3 hops &
for B in 1 hop
1.  Do I bel...
Economics of a Growing ISP
  Transit from one upstream
  Circuit (transport) to an open IXP
  Transit from two or more ...
Costs of YouTube-like growth
12 March 201424
Peering in Practice
12 March 201425
  2011 survey of 4,331 ISPs (86% of the
backbone) analyzed 142K interconnections
  S...
Governing Law Preferences
12 March 201426
Source: Survey of Characteristics of Internet Carrier Interconnection Agreements...
Multi-lateral peering emerges
12 March 201427
Source: Survey of Characteristics of Internet Carrier Interconnection Agreem...
Many BGP sessions for
Bi-lateral traffic exchange
12 March 201428
ISP1
ISP3
ISP2
ISP4
ISP5
Multi-lateral Peering
12 March 201429
ISP1
ISP3
ISP2
ISP4
ISP5
Route
Server
Tier 1s and everyone else
12 March 201430
Number of advertised IPv4 addresses (Y axis) vs number of interconnects/ISP
Sour...
Market concentration declining
12 March 201431
The Internet
12 March 201432
  A voluntary agreement among network
operators to exchange traffic for their
mutual benefit...
Brough Turner
netBlazr Inc.
brough@netblazr.com
12 March 201433
Thank You
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Internet peering, graphics only

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Internet peering, graphics only

  1. 1. Impact on Network Architecture and Economics Internet Peering Brough Turner Founder & CTO, netBlazr Inc.
  2. 2. Today’s Network of Networks 12 March 20142 Billions of Internet users Tens of Millions of Networks Access ISPs IXP IXP Backbones IXP AggregationRegional
  3. 3. 12 March 20143
  4. 4. 1991  NSF lifts restrictions on commercial use  SURFnet, PSInet & AlterNET form CIX exchange 12 March 20144
  5. 5. 1993 Plan – 1995 Reality 12 March 20145
  6. 6. 12 March 20146 AGIS, ANS, BBN, CERFnet, MCI, PSInet, SprintLink NAP NAP
  7. 7. 12 March 20147 AGIS, ANS, BBN, CERFnet, MCI, PSInet, SprintLink NAP NAP
  8. 8. De-peering   UUNET – April/May 1997   MAE-East FDDI shutdown – Feb 2001   Cable & Wireless – May 2001   Sprint – gradual 2001/2002 12 March 20148
  9. 9. Donut Peering 12 March 20149 Tier 1 ISPs Access ISPs Tier 2 ISPs Cable Co’s Large, savvy content providers Content providers $ $ $ $ $
  10. 10. Donut Peering 12 March 201410 Tier 1 ISPs Access ISPs Tier 2 ISPs Cable Co’s Large, savvy content providers Content providers P P P $ $ $ $ $
  11. 11. Donut Peering 12 March 201411 Tier 1 ISPs Access ISPs Tier 2 ISPs Cable Co’s Large, savvy content providers Content providers P P P $ $ $ $$ $ $
  12. 12. CDNs emerge 12 March 201412 IXP IXP CDN NOC
  13. 13. CDNs emerge 12 March 201413 IXP IXP CDN NOC
  14. 14. Turbulence 12 March 201414   UUNET (Alternet)  MFS  Worldcom Verizon   ANS  AOL "   SprintLink  Sprint   BBN  GTE  Genuity  Level 3   MCI  Cable & Wireless   CERFnet  AT&T   AGIS  Telia   PSInet (US)  Cogent (Canada)  Telus (EU)  Interroute
  15. 15. ISP1 Peering vs Transit 12 March 201415 Backbone ISP2 ISP U U U U ISP ISP ISPx Transit
  16. 16. ISP1 Peering vs Transit 12 March 201416 Backbone ISP2 ISP U U U U ISP ISP ISPx Peering Transit
  17. 17. ISP1 Peering vs Transit 12 March 201417 Backbone ISP2 ISP U U U U ISP ISP ISPx Peering Transit
  18. 18. Peering Technology   Internet Protocol –   IPv4 == 98% of all traffic   IPv6 == ~2% of traffic   Border Gateway Protocol –   Based on distance and path   Routing information exchanged between Autonomous Systems 12 March 201418
  19. 19. Border Gateway Protocol 12 March 201419 ISP1 ISP2 A B C My Edge Router
  20. 20. Border Gateway Protocol 12 March 201420 ISP1 ISP2 A B C I can handle traffic for A in 3 hops & for B in 1 hop My Edge Router
  21. 21. Border Gateway Protocol 12 March 201421 ISP1 ISP2 A B C I can handle traffic for A in 3 hops & for B in 1 hop My Edge Router
  22. 22. Border Gateway Protocol 12 March 201422 ISP1 ISP2 A B C I can handle traffic for A in 3 hops & for B in 1 hop 1.  Do I believe your offer? 2.  Who has shortest path? 3.  Are there $ considerations? 4.  Add routes to routes table. My Edge Router
  23. 23. Economics of a Growing ISP   Transit from one upstream   Circuit (transport) to an open IXP   Transit from two or more upstreams   Peering for content (Google, Akamai, etc.)   Transport to other IXPs   Peering for additional traffic 12 March 201423
  24. 24. Costs of YouTube-like growth 12 March 201424
  25. 25. Peering in Practice 12 March 201425   2011 survey of 4,331 ISPs (86% of the backbone) analyzed 142K interconnections   Settlement-free peering dominates   99.5% based on handshake agreements   99.7% symmetric   Typical peering requirements   Operations (24 hr NOC; enough traffic)   Technical (shortest prefix; consistency)   General (NDAs, Suspend at will)   Emergence of multi-lateral peering
  26. 26. Governing Law Preferences 12 March 201426 Source: Survey of Characteristics of Internet Carrier Interconnection Agreements by Woodcock & Adhikari, Packet Clearing House. May 2011 Probability of selection as a country of governing law
  27. 27. Multi-lateral peering emerges 12 March 201427 Source: Survey of Characteristics of Internet Carrier Interconnection Agreements by Woodcock & Adhikari, Packet Clearing House. May 2011 Number of networks (X axis) with each quantity of peering partners (Y axis)
  28. 28. Many BGP sessions for Bi-lateral traffic exchange 12 March 201428 ISP1 ISP3 ISP2 ISP4 ISP5
  29. 29. Multi-lateral Peering 12 March 201429 ISP1 ISP3 ISP2 ISP4 ISP5 Route Server
  30. 30. Tier 1s and everyone else 12 March 201430 Number of advertised IPv4 addresses (Y axis) vs number of interconnects/ISP Source: Survey of Characteristics of Internet Carrier Interconnection Agreements by Woodcock & Adhikari, Packet Clearing House. May 2011 Tier 1 ISPs
  31. 31. Market concentration declining 12 March 201431
  32. 32. The Internet 12 March 201432   A voluntary agreement among network operators to exchange traffic for their mutual benefit.   Fred Goldstein, TMCnews, June 2009   Essentially unregulated   Largely informal   Not well understood by outsiders   Extremely successful
  33. 33. Brough Turner netBlazr Inc. brough@netblazr.com 12 March 201433 Thank You

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