This document discusses the evolution of peering relationships on the public internet. It describes how in the early 2000s, major cable companies and large content providers like Google began peering directly at internet exchange points rather than paying for transit. This reduced costs and improved performance. More recently, the rise of video traffic has given network access providers like Comcast more leverage in negotiations, since content providers have no alternative but to peer with the access provider to reach their captive customer base. This represents a shift in power dynamics within the internet peering ecosystem.
Remote Internet Peering Vs IP Transit: A Shift in Internet ArchitectureRuth Plater
An overview explaining the reasons fo peering at Internet Exchange Points (IXPs), versus IP Transit, and the known benefits and uses of both approaches to a network blend.
The presentation brings to light the decline in pricing of IP Transit and what this means for the financial benefits that peering used to offer and how remote peering (or virtual connectivity at Internet Exchanges) continues to alter this landscape.
It also highlights how remote peering has changed the way network operators exchange traffic and made peering more accessible to smaller/medium sized companies and developing markets, by removing the initial barriers in terms of legal, billing and technical; simplifying the whole process of expanding a network.
Developing markets are also discussed, such as the Middle East, and the peering paradigm of 'keeping local traffic local' Vs virtually/remotely connecting to Internet Exchanges and the issues with both.
It touches on the shift in the industry and how Internet Exchanges and Data Centres are behaving more like networks and vice versa, explaining the new Central European Peering Hub project by LU-CIX - with IX Reach as the first carrier partner - whereby they encourage members to join major Internet Exchanges (DE-CIX, LINX, France-IX and AMS-IX) via their Internet Exchange platform.
PTC'14 Presentation by Steve Wilcox: “The Role IXPs and Peering Play in the E...Nicole White
Presentation given by Stephen Wilcox, CEO of IX Reach at PTC'14, entitled “The Role IXPs and Peering Play in the Evolution of the Internet”.
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."
Understanding Remote Peering - Connecting to the Core of the InternetWilliam Norton
Understanding Remote Peering – The New Wave of Interconnection at the Core of the Internet.
Using real-world case studies, this free webinar explains remote peering and what it means to ISPs, content providers and the global Internet peering ecosystem. Learn from William B. Norton who has presented three popular USTelecom webinars on Internet peering.
Background
The Internet peering ecosystem is going through a historic and rapid paradigm shift.
The largest ISPs and content providers have always interconnected their networks at the core of the Internet using a technique called "Internet peering," the free and reciprocal exchange of access to each other's customers. In this way, networks of scale can exchange a large enough amount of traffic for free with one another to offset the cost of deployment (equipment, colocation, and transport to the colocation center). This justification is the basis for the business case for peering.
However, a recent trend -- called "remote peering" -- has emerged as a way to get these peering benefits but without the cost of additional equipment, transport, or colocation. The remote peering model is where a remote peering provider delivers transport to the customer router with Virtual Local Area Network (VLAN) extension(s) from the largest exchange points in the world. In this way, the customer gets all of the benefits of peering (performance, control over routing, direct relationships with the peer networks, etc.) without the large initial capital and operational costs.
This is not just a fringe or small change to peering - it is a fundamental shift in the Internet architecture. Remote peering is a new technique that helps make peering accessible to a much larger population. As a result of the cost shift, an increasing percentage of networks are peering across great distances. The peering paradigm of "peering keeps local traffic local" is no more.
During the free webinar you will hear case studies from the field where medium-sized content companies are able to enter the peering ecosystem and connect to multiple Internet Exchange Points over a single circuit. These companies have graciously allowed their cost numbers to be shared so the traditional peering model can be compared against the emerging remote peering model. Also, the webinar will highlight the strongest arguments on both sides of the debate over whether remote peering is good or bad for the global Internet peering ecosystem.
William B. Norton, Executive Director, DrPeering International and Author of the new 2014 Edition of “The Internet Peering Playbook: Connecting to the Core of the Internet” which includes a new chapter dedicated to remote peering.
The Internet backbone consists of just over 6000 independent networks that exchange traffic in fashions that are not well understood outside of the backbone networking community. We explain how it works, how it has evolved and how it is continuing to evolve today.
This is a revised and annotated version of material most recently given as an invited presentation at OFC 2014, the optical fiber conference in San Francisco, in March 2014.
To provide higher resolution, I've also uploaded a version w/o annotations, i.e. just the graphics.
SDN, Network Virtualization and the Software Defined Data Center – Brad HedlundChef Software, Inc.
IT organizations around the world are transforming data center operations and economics by virtualizing their networks. Much like server virtualization decoupled VMs from the underlying X86 server hardware transforming the operational model of compute, network virtualization decouples software-based virtual networks from the underlying network hardware to enable a new operational model for networking. Deployed non-disruptively on any existing network without change, network virtualization transforms the physical network into a pool of capacity that can be consumed and repurposed on demand.
You will learn how, today, companies like AT&T, NTT, eBay and Rackspace have transformed their operational model and reduced network provisioning time from days/weeks to seconds. You will learn how network virtualization, OpenStack cloud management and Chef automation can be leveraged together and examine the architectural decisions you should be considering now to prepare for this transformation
African Peering and Interconnection Forum 2010
Despite the growing regional infrastructure, most of the cross-border Internet traffic exchange is done in Europe and North America. This is a clear indication that the satellite routing policies are still predominant in a submarine and terrestrial fiber setting.
A visible example is a trace of the path followed by an Internet packet from Nairobi, Kenya to Kigali, Rwanda. The packet from Nairobi will go to Europe then back to Kigali. The anomaly is that Rwanda is a landlocked country, and has its international fiber connectivity terrestrially connected through the Kenyan coastal city of Mombasa.
The scenario is replicated across the entire region and serves a barrier to growth, innovation and operational efficiency. Of most concern is, cross-border and regional communications are entirely dependent on global connectivity. Africa Peering and Interconnection Forum is a two day forum that aims to address the key Interconnection opportunities and challenges that exist in the region
AfPIF Session 1: Peering vs Transit Economics
An update of the infrastructure status covering IXPs, terrestrial to submarine cables in the region will be provided. Panellists will discuss the economic concepts of peering and transit from an operator’s perspective in order to be to introduce the participants to main interconnection concepts and how it impacts on their operational efficiency.
These are the graphics (in higher resolution) for my presentation, Internet Peering with annotations. See "Internet Peering, with annotations" for details.
Integrating multiple CDN providers at Etsy - Velocity Europe (London) 2013Marcus Barczak
Relying on a single content delivery network for your site can impose a number of flexibility limitations. By diversifying your CDN providers you can put the power back in your hands, allowing you to get the best of both worlds in terms of performance, reliability and cost. In this talk Marcus and Laurie will present Etsy’s recent work integrating multiple CDN providers to their site delivery infrastructure.
This presentation was delivered at Velocity Europe, November 2013
Remote Internet Peering Vs IP Transit: A Shift in Internet ArchitectureRuth Plater
An overview explaining the reasons fo peering at Internet Exchange Points (IXPs), versus IP Transit, and the known benefits and uses of both approaches to a network blend.
The presentation brings to light the decline in pricing of IP Transit and what this means for the financial benefits that peering used to offer and how remote peering (or virtual connectivity at Internet Exchanges) continues to alter this landscape.
It also highlights how remote peering has changed the way network operators exchange traffic and made peering more accessible to smaller/medium sized companies and developing markets, by removing the initial barriers in terms of legal, billing and technical; simplifying the whole process of expanding a network.
Developing markets are also discussed, such as the Middle East, and the peering paradigm of 'keeping local traffic local' Vs virtually/remotely connecting to Internet Exchanges and the issues with both.
It touches on the shift in the industry and how Internet Exchanges and Data Centres are behaving more like networks and vice versa, explaining the new Central European Peering Hub project by LU-CIX - with IX Reach as the first carrier partner - whereby they encourage members to join major Internet Exchanges (DE-CIX, LINX, France-IX and AMS-IX) via their Internet Exchange platform.
PTC'14 Presentation by Steve Wilcox: “The Role IXPs and Peering Play in the E...Nicole White
Presentation given by Stephen Wilcox, CEO of IX Reach at PTC'14, entitled “The Role IXPs and Peering Play in the Evolution of the Internet”.
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."
Understanding Remote Peering - Connecting to the Core of the InternetWilliam Norton
Understanding Remote Peering – The New Wave of Interconnection at the Core of the Internet.
Using real-world case studies, this free webinar explains remote peering and what it means to ISPs, content providers and the global Internet peering ecosystem. Learn from William B. Norton who has presented three popular USTelecom webinars on Internet peering.
Background
The Internet peering ecosystem is going through a historic and rapid paradigm shift.
The largest ISPs and content providers have always interconnected their networks at the core of the Internet using a technique called "Internet peering," the free and reciprocal exchange of access to each other's customers. In this way, networks of scale can exchange a large enough amount of traffic for free with one another to offset the cost of deployment (equipment, colocation, and transport to the colocation center). This justification is the basis for the business case for peering.
However, a recent trend -- called "remote peering" -- has emerged as a way to get these peering benefits but without the cost of additional equipment, transport, or colocation. The remote peering model is where a remote peering provider delivers transport to the customer router with Virtual Local Area Network (VLAN) extension(s) from the largest exchange points in the world. In this way, the customer gets all of the benefits of peering (performance, control over routing, direct relationships with the peer networks, etc.) without the large initial capital and operational costs.
This is not just a fringe or small change to peering - it is a fundamental shift in the Internet architecture. Remote peering is a new technique that helps make peering accessible to a much larger population. As a result of the cost shift, an increasing percentage of networks are peering across great distances. The peering paradigm of "peering keeps local traffic local" is no more.
During the free webinar you will hear case studies from the field where medium-sized content companies are able to enter the peering ecosystem and connect to multiple Internet Exchange Points over a single circuit. These companies have graciously allowed their cost numbers to be shared so the traditional peering model can be compared against the emerging remote peering model. Also, the webinar will highlight the strongest arguments on both sides of the debate over whether remote peering is good or bad for the global Internet peering ecosystem.
William B. Norton, Executive Director, DrPeering International and Author of the new 2014 Edition of “The Internet Peering Playbook: Connecting to the Core of the Internet” which includes a new chapter dedicated to remote peering.
The Internet backbone consists of just over 6000 independent networks that exchange traffic in fashions that are not well understood outside of the backbone networking community. We explain how it works, how it has evolved and how it is continuing to evolve today.
This is a revised and annotated version of material most recently given as an invited presentation at OFC 2014, the optical fiber conference in San Francisco, in March 2014.
To provide higher resolution, I've also uploaded a version w/o annotations, i.e. just the graphics.
SDN, Network Virtualization and the Software Defined Data Center – Brad HedlundChef Software, Inc.
IT organizations around the world are transforming data center operations and economics by virtualizing their networks. Much like server virtualization decoupled VMs from the underlying X86 server hardware transforming the operational model of compute, network virtualization decouples software-based virtual networks from the underlying network hardware to enable a new operational model for networking. Deployed non-disruptively on any existing network without change, network virtualization transforms the physical network into a pool of capacity that can be consumed and repurposed on demand.
You will learn how, today, companies like AT&T, NTT, eBay and Rackspace have transformed their operational model and reduced network provisioning time from days/weeks to seconds. You will learn how network virtualization, OpenStack cloud management and Chef automation can be leveraged together and examine the architectural decisions you should be considering now to prepare for this transformation
African Peering and Interconnection Forum 2010
Despite the growing regional infrastructure, most of the cross-border Internet traffic exchange is done in Europe and North America. This is a clear indication that the satellite routing policies are still predominant in a submarine and terrestrial fiber setting.
A visible example is a trace of the path followed by an Internet packet from Nairobi, Kenya to Kigali, Rwanda. The packet from Nairobi will go to Europe then back to Kigali. The anomaly is that Rwanda is a landlocked country, and has its international fiber connectivity terrestrially connected through the Kenyan coastal city of Mombasa.
The scenario is replicated across the entire region and serves a barrier to growth, innovation and operational efficiency. Of most concern is, cross-border and regional communications are entirely dependent on global connectivity. Africa Peering and Interconnection Forum is a two day forum that aims to address the key Interconnection opportunities and challenges that exist in the region
AfPIF Session 1: Peering vs Transit Economics
An update of the infrastructure status covering IXPs, terrestrial to submarine cables in the region will be provided. Panellists will discuss the economic concepts of peering and transit from an operator’s perspective in order to be to introduce the participants to main interconnection concepts and how it impacts on their operational efficiency.
These are the graphics (in higher resolution) for my presentation, Internet Peering with annotations. See "Internet Peering, with annotations" for details.
Integrating multiple CDN providers at Etsy - Velocity Europe (London) 2013Marcus Barczak
Relying on a single content delivery network for your site can impose a number of flexibility limitations. By diversifying your CDN providers you can put the power back in your hands, allowing you to get the best of both worlds in terms of performance, reliability and cost. In this talk Marcus and Laurie will present Etsy’s recent work integrating multiple CDN providers to their site delivery infrastructure.
This presentation was delivered at Velocity Europe, November 2013
WIFI Goes to Town - An article summary presentation Adel Belasker
This is an article's summary presentation that intend to reveal and explain the most important points discussed in this Article .
Presented by Adel Belasker and Ismail Yaich
Presentation by Kevin Smith, Vodafone & Chair ETSI NGP (Next Generation Protocols) at the URLLC 2017 conference on Nov. 14, 2017.
*** Shared with Permission ***
Mobile Operators: From Packet Delivery to Content LogisticsMaximilian Ott
Video is THE dominating traffic source on mobile networks. Mobile operators need to address that through innovative new services.
The talk proposes to move from a dumb packet delivery service to Content Logistics.
It describes a new technical approach & business model to tackle that
PLNOG 17 - Stefan Meinders - Slow is the new DownPROIDEA
In this presentation, we will review trends in Over-the-Top (OTT) traffic usage, user behavior and rapidly growing volumes of video streaming from services such as Netflix. The amount of video traffic carried by networks and its interconnections is significant. Delivery methods and encryption are challenges for today’s methods of network analysis—as are unexpected network changes that can drastically impact subscribers, transit costs, and network overload. Recent research unveiled that existing monitoring tools cannot cope with these variations in traffic delivery, caching strategies, and encryption. Finally, we describe how the use of “big data” techniques and multi-dimensional databases combined with global internet service mapping provides new insights into traffic delivery, consumption, and quality.
Mei Yick is the premium partner with China Entercom which runs the exclusive IP VPN cross border license from PRC to HK. The service is best supported by CITIC which is the heavyweight State Own Enterprise.
APNIC Training Delivery Manager for SEA and SA, Shane Hermoso, presents on the importance of peering and IXPs at the Women in Networking series on 17 November 2021
Evaluating Approaches to Building DPI into an LTE Network at the PDN Gateway ...Continuous Computing
Presentation delivered at Broadband Traffic Management Congress on November 2010 entitled, "Evaluating Approaches to Building DPI into an LTE Network at the PDN Gateway and Esuring Scalability"
Similar to 10 the 21st-century-internet-peering-ecosystem (20)
This is the slide deck for the webinar I did Jan 18, 2012 for US Telecom.
I talk about connecting to the edge of the Internet by purchasing Internet Transit, connecting to the Core of the Internet by peering and the business case for peering.
2. Tier
1
ISPs
migrate
back
into
IXPs
• 1999
WP:
• Documented
the
math
Interconnec=on
• 5
ISPs
in
completely
Strategies
for
ISPs
cover
the
cost
of
metro
• Working
closely
to
circuits
understand
their
• And
no
18
mo
mo=va=ons
turnaround
• Iden=fy
pain
point:
18
• 8
independent
RFPs
mos
past
FOC
date
released
• IXPs
can
do
24
hr
• 2001:
EQIX
wins
most
turnaround
2
3. Where
the
Tier
1
ISPs
peer
SIX
EQIX
Chicago,
IL
<Various…>
EQIX
Ashburn.
VA
EQIX
San
Jose,
CA
AtlantaIX
EQIX
Los
Angeles,
CA
EQIX
Dallas,
TX
Spread
the
load,
more
paths
to
des=na=on,
beCer
performance
for
customers.
3
4. Evolu=on
of
the
U.S.
Peering
Ecosystem
• 1999/2000
Economic
Collapse
of
the
Telecom
Sector
• Growth
in
used
equipment
market
• Upstream
for
cable
cos
goes
bankrupt
(@Home)
30
days
no=ce
to
be
ISPs!
• Peer-‐to-‐peer
file
sharing
fills
pipes
• Transit
prices
drop
4
6. Cable
Companies
Peer
• Significant
evolu=on
because
– Massive
Volume
of
traffic
peered
– Kazaa
Effect
• 20%+
bump
• “More
local”
– Grandma
Story
– Cable
companies
adopted
open
Peering
Policy
6
7. Evolu=on
#2
–
Large
Scale
Network
Savvy
Content
Providers
Peer
• #1
Improve
end
user
experience
• Reduce
transit
costs
• Move
to
new
data
center
anyway
• Large
volume
traffic
• Open
Peering
Policies
• Leaders:
Yahoo!,
Google,
Electronic
Arts,
Sony
Online,
Microsou,
etc.
7
8. LSNSCP
Peer
• Significant
because:
1)
End-‐User
performance
2)
Transit
cost
reduc=on
3)
Needed
to
move
anyway
(out
of
bankrupt
data
center)
8
9. Evolu=on
#3:
Cable
Companies
and
LSNSCP
Peer
• Open
Peering
• Massive
traffic
pulled
from
Tier
1
ISPs
• Fat
Middle
of
the
Internet
Peering
Ecosystem
• “Donut
Peering”
• Leaders
pave
the
wave
• “We
expect
customers
to
to
that
which
is
ra=onal”
–
Level
3
9
10. Evolu=on
#4:
CDNs
Dominate
Traffic
Volume
• “Web
Objects”
uploaded
to
CDN
• Video
Objects
are
massive
• Selling
Transit
but
delivering
from
a
place
closer
to
the
eyeballs
• Open
Peering
policy
• 10G
deployment
story
10
11. Evolu=on
#5:
Video
Hollywood System Morphs...
Innovation
P2P Lawsuits
Products Adjusted
Release Window Shortened
Simultaneous Int’l Releases
VideoConf
Digital Download - Rent/Buy
Commercial-sponsored TV: Hulu
5M SkypeTV 2010
11
12. A
fundamental
shiu
in
the
power
base
of
the
Internet
Peering
Ecosystem
#6: Access Power Peering
13. Evolu=on
#6:
Access
Power
Peering
• 2010
–
40-‐50%
of
all
• Video
is
or
soon
will
be
Internet
Traffic
is
Video
the
dominant
• Video
unlike
other
applica=on
content:
quality
maCers
• Massive
customer
– Ar=facts
&
suspension
of
demand
disbelief
• Who
has
the
power?
– Massive
volume
– Eyeball
networks?
• Cable
Companies
– Content
distributors?
peering
policy
changes
• We
will
demonstrate
– Balanced
ra=os
this
with
a
recent
story
– Paid
Peering
offered
13
14.
2010-‐2012
CAPTIVE
ACCESS
POWER
PEERING
The
Hot
Topic
Today
in
the
Internet
Peering
Community
14
15. Cap=ve
Access
Power
Peering
Example
Level3
broad
business
deal
Fiber,
transit,
free
peering
(on-‐net),
etc.
*3
Ways
to
reach
Comcast
1) Transit
(LLNWàGLBXàComcast)
2) Paid
Peering
(LLNW-‐>Comcast)
3) Peering
(LLNW-‐>Comcast)
w/vol
&
<2.5:1
ra=o
Video
is
highly
asymmetric
up
to
30:1
Comcast
peering
ra=o
requirement<2.5:1
All
paths
require
Comcast
Peering
is
direct,
high
performance
Transit
is
subject
to
loss/latency
OTT
Video
requires
high
performance
No
alterna=ve
path
to
Comcast
eyeballs
but
through
Comcast
(Cap=ve
customers)
15
16. Cap=ve
Access
Power
Peering
Example
*3
Ways
to
reach
Comcast
1) Transit
(AàGLBXàComcast)
2) Paid
Peering
(A-‐>Comcast)
3) Peering
(A-‐>Comcast)
w/vol
&
<2.5:1
Video
is
highly
asymmetric
up
to
30:1
Comcast
peering
ra=o
requirement<2.5:1
All
paths
require
Comcast
Peering
is
direct,
high
performance
Transit
is
subject
to
loss/latency
OTT
Video
requires
high
performance
No
alterna=ve
path
to
Comcast
eyeballs
but
through
Comcast
(Cap=ve
customers)
If
you
are
in
the
video
distro
biz
you
must
buy
paid
peering
from
Comcast
16
17. Cap=ve
Access
Power
Peering
Example
*3
Ways
to
reach
Comcast
1) Transit
(AàGLBXàComcast)or
WORSE!
2) Paid
Peering
(A-‐>Comcast)
3) Peering
(A-‐>Comcast)
w/vol
&
<2.5:1
Video
is
highly
asymmetric
up
to
30:1
Comcast
peering
ra=o
requirement<2.5:1
All
paths
require
Comcast
Peering
is
direct,
high
performance
Transit
is
subject
to
loss/latency
OTT
Video
requires
high
performance
No
alterna=ve
path
to
Comcast
eyeballs
but
through
Comcast
(Cap=ve
customers)
If
you
are
in
the
video
distro
biz
you
must
buy
paid
peering
from
Comcast
17
18. Cap=ve
Access
Power
Peering
Example
*3
Ways
to
reach
Comcast
1) Transit
(AàGLBXàComcast)or
WORSE!
2) Paid
Peering
(A-‐>Comcast)
3) Peering
(A-‐>Comcast)
w/vol
&
<2.5:1
Video
is
highly
asymmetric
up
to
30:1
Comcast
peering
ra=o
requirement<2.5:1
All
paths
require
Comcast
Peering
is
direct,
high
performance
Transit
is
subject
to
loss/latency
OTT
Video
requires
high
performance
No
alterna=ve
path
to
Comcast
eyeballs
but
through
Comcast
(Cap=ve
customers)
If
you
are
in
the
video
distro
biz
you
must
buy
paid
peering
from
Comcast
18
19. 1)
NetFlix
Applica=on
2010
NetFlix
distributes
Video
via
CDNs
Massive
growth
O(100’sGbps)
Great
Service
Level
3
bids
cheaper
and
wins
the
NetFlix
business
Who
wins?
Who
loses?
19
20. 1)
NetFlix
Applica=on
2010
NetFlix
distributes
Video
via
CDNs
Massive
growth
O(100’sGbps)
Great
Service
Level
3
bids
cheaper
and
wins
the
NetFlix
business
Who
wins?
NetFlix
–
lower
prices
Level
3
–
new
customer
Has
eyeballs
as
customers
also
Who
loses?
Akamai
–
revenue
for
leading
&
growing
video
customer
Comcast
–
revenue
from
Akamai
20
21. 2)
Level
3
requests
more
peering
interconnects
Akamai
loses
T$
Comcast
loses
PP$
Level
3
freely
peers
the
traffic
Level
3
requests
more
interconnects
21
22. 2)
Level
3
requests
more
peering
interconnects
Akamai
loses
T$
Comcast
loses
PP$
Level
3
freely
peers
the
traffic
Level
3
requests
more
interconnects
Comcast
says
No
–
you
pay
like
AKAM&LLNW
22
23. 2)
Level
3
requests
more
peering
interconnects
Akamai
loses
T$
Comcast
loses
PP$
Level
3
freely
peers
the
traffic
Level
3
requests
more
interconnects
Comcast
says
No
–
you
pay
like
AKAM&LLNW
Level
3
Acquiesces
Level
3
pays
paid
peering
fees
to
Comcast
=Cap=ve
Access
Power
Peering
Comcast’s
consistency
hardens
the
Cap=ve
Access
Power
play
into
a
trend.
23
24. 3)
Result
&
Observa=on
Comcast
leverages
peering
to
get
$$
from
all
sides
v
No
alterna=ve
to
reach
Comcast
customers
t
“Cap=ve”
Customers
NetFlix
Level 3
Can’t
peer
around
them
$
Can’t
choose
compe=tor
Exploi=ng
Market
power
posi=on:
Cap=ve
Market
Peering Transit
PP
Where
is
this
going?
Is
this
the
right
model?
$
LimeLight
PP $ Comcast $ PP
Networks Akamai
$
NetFlix NetFlix
millions of broadband homes
24
25. Last
Break
Next
Up:
The
Internet
Peering
Playbook:
The
Art
of
Peering
Aka
The
Tricks
of
the
Trade
25