This document discusses the challenges with internet interconnection in Asia, specifically related to cost, complexity, and policies. It notes that while Asia has major internet hubs like Singapore, Hong Kong, and Tokyo due to infrastructure, the layer 3 interconnection is more difficult due to high costs of backhaul, complex network designs, and closed domestic peering environments in many countries. Specifically, the cost of terrestrial backhaul between Asian cities can be 50-100 times more expensive than similar routes in Europe and North America. These challenges mean that transit is often cheaper than direct interconnection for network operators. More open and affordable access to infrastructure like dark fiber could help disrupt the market and improve interconnection options.
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APNIC Infrastructure and Development Director Che-Hoo Cheng presents on IXP development in the region at SANOG 33 in Thimpu, Bhutan from 9 to 16 January 2019.
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Senior Advisor Policy and Community Development Sunny Chendi gives an overview of IXPs and their benefits at the 11th Asia Pacific Telecommunity Policy and Regulation Forum for Pacific (APT PRFP 11) from 27 to 29 November 2018 in Apia, Samoa.
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Excerpt:
"There are over 400 Internet Exchange Points distributed across the world, and growing. The largest and most successful reside in Europe and play a vital role in the growth and evolution of the Internet. There are over 50 IXPs in Europe alone, most promoting local traffic exchange but only a handful recognised as international hubs for interconnections. These particular IXPs continue to increase their value added services and expand globally - most recently to the US - promoting their non-for-profit and neutral business models in varying and emerging markets. This recent expansion makes it all the more important to consider the role IXPs and peering play in the continuing evolution of the Internet and how network operators should approach peering in a network blend.
The reciprocal interplay between Tier 1, 2 and 3 networks over IXPs, particularly those with an international focus, has become an interesting addition to the global Internet topology, enabling networks to reduce their costs and the Internet to grow in-line with end-user demand for high-bandwidth content and mobile usage. However, given 99.5% of peering agreements are completed on a hand shake, and the majority are settlement-free, scenarios such as de-peering can still occur, leading to partial Internet black-outs and events such as these need to be taken into consideration when building redundancy into a network.
This industry briefing will discuss the most common ways different networks value and utilise IXPs in their network blend, what to consider when choosing peering locations, why some participate at an IXP while others do not, and the de-peering scenarios that can occur and the impact this can have on a network's service. It will also touch on the geographical positioning of major IXPs and the trends in peering partners by selected countries."
Technology and Diplomacy: Mobile Internet in AsiaAbu Saeed Khan
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3. Interconnection Markets
• Internet interconnections are concentrated in
few hubs around the world
– US West Coast (Silicon Valley, Los Angeles)
– US East coast (New York, Ashburn)
– London, Amsterdam, Frankfurt, Stockholm
– Singapore, Hong Kong, Tokyo
4. Interconnection Markets
• It takes time and lots of efforts to create a
viable interconnect market.
– Singapore is a very recent entrant into this ‘hub’
status.
• It doesn’t always work at scale for everyone
– Local relevance may sometimes be more value
• Moscow, Miami, Prague, Budapest
• Open and easy access are the key drivers
– Why are Rio / Mumbai / Dubai not real hubs yet?
5. Let’s Dig Deeper into the Asian Hubs
• Singapore
– A hub for a lot of other things – transport, banking, logistics due
to ease of doing business
– Equinix SG1 IX (287 networks according to peeringdb)
• Hong Kong
– Similar to Singapore, traditional hub for logistics
– Voice Interconnect hub, so carrier density
– HKIX (297 networks according to peeringdb)
• Tokyo
– The traditional jumping point to the ‘Internet’ in the US
– Japan is one of the largest Internet markets (users, content,
everything)
– JPIX (184 ), JPNAP (150)
7. But
Layer 1 infrastructure doesn’t translate
into Layer 3 Interconnect
Because of
Cost
Complexity
Policies
8. Cost of Backhaul – NA/Europe
• Intra Europe 10G terrestrial wave Costs
– 800-1200 USD for 10G between major points
– 1000-1500 USD for extended locations
– Bucharest to London is ~2500KMs, costs below
2500 USD, or roughly 0.0001/mbps-km.
• Intra-US 10G wave costs are similar (actually a
bit higher)
– US distances are longer
– Large expanse of empty lands
9. Cost of Backhaul in APAC
• Intra Asia is mostly Sub sea, costs are
traditionally higher, but going down drastically
– Intra Asian Hub prices range from 12-20K/Month,
depending on locations
– Cost of local loop are a key driver, but with POP to
POP design changes, the local loop is not a big
consideration for many providers.
• Where it does, the cost of CLS to POP backhaul is a big
problem
10. Cost of terrestrial Backhaul
– North Asia
• Japan: Tokyo – Osaka : 10G ~-5-8K/month
• Korea: Seoul – Busan : 10G ~ 12K/month
– South Asia
• India : Delhi-Mumbai: 10G ~50-60K a month
• Bangladesh : Dhaka-Cox’ 10G – 25K/month
• Nepal : Kathmandu-Pokhara 10G: - 10K/month
– South East Asia
• Malaysia: Kualalumpur – Johor: 30K/month
• Thailand: Bangkok – Phuket: 10G ~25-30K/month
*Philippines, Indonesia are mostly subsea. Different costs
12. Let’s look deeper
• CLS to POP costs
– Tuas/ Changi – SG1 : 5-8K/month
– Chikura/Maryuama - Otemachi : 5-8K/month
– Hongkong : 4K/month premium for anywhere
outside Mega-I.
– Korea: it cost more for local backhaul from the CLS to POP, then the
wet segment from Tokyo
– India : Regulated Access charge ($4/mbps ?)
13. So,
• It is EXPENSIVE to get to peering locations
– Transit may be cheaper
– Going to LA is likely cheaper
• Operators keep costs artificially high
– In Metro Areas
– Offer IP Transit over the same transport, which is
cheaper (vs. buying the transport).
• Complexity keeps the costs high
– SDH
– Weak Fiber Infrastructure (i.e, needing 3 routes to
build full redundancy).
14. Complexity & costs are related
• In Tokyo metro area, metro 10G between certain
Datacenters are available as low as $350.
– Same transport from other providers range upto 5K/month
• Aggregation for other services are not optimal for data.
– One major Indian mobile carrier aggregates into 3
locations, and those are not close to data gateways.
– Network designed based around regulatory boundaries,
and voice optimization
• Just easier to buy transit in 3 locations then try to aggregate and
build peering.
• It adds the costs, makes engineering changes difficult.
15. It’s not just the cost or complexity
• Most Markets are closed except for HK
– HKIX had an early start, and is popular even with the
high local transport cost
• (imagine HKIX without transport cost.. without M-I)..
– But then you have Dark Fiber in HK being limited to N-
Waves
• Domestic Peering fabric are closed user groups or
non existent
– Korea, Japan, Vietnam, India have closed environment
– In most other it’s likely non-existent
16. Can it be improved
• Singapore has nearly done it, so yes.. Can be
done
• Things may move faster in JP, HK, SG then in
other locations.
• But something more disruptive needed
– Dark Fiber availability or metro waves availability
– Metro area IXPs ? (in SG and HK)