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The	
  Great	
  Debate	
  

Understanding	
  the

The Folly of Peering
Ratios

                       ©2012	
  DrPeering	
  Interna7onal	
  
                       Licensed	
  material	
  –	
  sales@DrPeering.net	
  
                       h@p://DrPeering.net	
  
 	
  	
  	
  	
  	
  	
  
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
                                                       THE	
  INTERNET	
  PEERING	
  
                                                       PLAYBOOKS	
  




                                                                                 The	
  Tricks	
  of	
  the	
  Trade	
   	
  	
  	
  	
  	
  	
  




                                                                                                                                    2	
  
The Folly of Peering Ratios?


                               From Debate…
The Great Peering Ratios Debate


•  is based on the “Great Peering Debate”
   held in Los Angeles at the Peering BOF X
•  using Peering Ratios as a discriminator for
   peering candidates
•  Most commonly used by large Tier 2 and
   Tier 1 ISPs to deny peering w/content
•  Here are the best arguments and counter
   arguments
Argument #1 – “I don’t want to haul your
content all over the world for free.“

              Content
              Heavy
               ISP A

          P



                          BigISP
      T                                                       T
                                   T   Small requests
                                       Generate
   Access                              Big Responses     Access
   Heavy                 Access                          Heavy
  Customer               Heavy                          Customer
                        Customer

  United States                                         Europe
Argument #1 – “I don’t want to haul your
content all over the world for free.“

              Access
              Heavy
              ISP A

          P



                         BigISP
      T                                                              T
                                   T   Small requests
                                       Generate            Eyeball
   Content               Eyeball
                                       Big Responses     Content
                                                          Customer

  Customer             Content
                        Customer
                                                        Customer
                       Customer



  United States                                         Europe
Argument #2 – “OK, but there is
massive asymmetry here. Look at
how many bit miles I have to carry
your content, while you have only to
deliver the traffic across the
exchange point.”

•  Distribution Argument
•  Not related to ratios
Argument #3 – “I don’t want to peer
with Content Heavy ISPs because doing
so will screw up my peering traffic
ratios with my other peers.”
                                Big Response     Access
                                    P
                        ISP X                    Heavy
                                Small requests    ISP Y
                    $
                e
             ns
          po
        es




                                                   ISP Y:X
     gR

      T




                                                   Out:In
     Bi




                                                   1:1 ratio


    Content
     Heavy
     ISP A
Once we peer…




                                                                     Access
                                            P
                         ISP X                                       Heavy
                                                                      ISP Y
                     $

                                                               sts
                                                        re que         ISP Y:X
                                               a   ll
                T




                                            Sm                         Out:In
                                      P                                1.2:1 ratio

                                           se
          Content                     espon
                                 Big R
           Heavy
           ISP A

Conclusion 3A: If an Access Heavy ISP peers with a Content Heavy ISP,
it can adversely affect its peering traffic ratios with its other peers.
Big Response
                                                            Content
                                             P
                                   ISP X                     Heavy
                                           Small requests    ISP Y
                               $
                           e
                        ns
                         o
                      sp
                 Re




                                                               ISP Y:X
                        T
                Big




                                                               Out:In
                                                               1:1 ratio


               Access
               Heavy
                ISP A

Conclusion 3B: If a Content Heavy ISP peers with an Access Heavy ISP,
it can positively affect its peering traffic ratios with its other peers.
•  (False) Conclusion 3: Peering traffic ratios
   are valid discriminators because they help
   maintain peering traffic ratios with other
   (existing) peers.
•  While demonstrable, THIS IS A
   CIRCULAR ARGUMENT for the general
   question at hand.
Argument #4 – “I want revenue for
carrying your packets.”
•  Counter-Argument #1 - All peering and transit relationships are
   negotiable business relationships, but peering traffic ratios are
   probably not the right metric for determining the terms of the
   relationship.
•  Counter-Argument #2 - As discussed above, the cost of
   distribution is the same regardless of whether content or access
   heavy. A more appropriate negotiating discussion surrounds the
   incremental value provided to the content or access customers by
   the network in question.
•  Counter-Argument #3 - And remember, you will have to carry this
   traffic by some means (transit or peering) to get it to your customers.
   So when negotiating, you are just negotiating for a different delivery
   mechanism to your customers – this may not command a high price.
Argument #5 – “My backbone is heavily
loaded in one direction – I don’t have
the $ to upgrade the congested portion
of the core in that direction without a
corresponding increase in revenue.”
  •  Counter-Argument #1 - This may signal that you are neither a good
     peering nor a good transit provider candidate.
  •  Counter-Argument #2 - This loading problem can best be solved
     with better traffic engineering, with the allocation of more resources
     to the backbone, or by temporarily denying peering until the needed
     upgrades are done.
Argument #6 – “I don’t want to peer
with anybody else. I don’t have to – I
have all the peering that I need.
Peering traffic ratios help me
systematically keep people out.”

•  Counter-Argument - One could just as easily specify
   higher traffic volume, more points of interconnect, a
   larger backbone capacity into more geographic regions
   including ones that don’t make any sense. This is not a
   strong defense for the validity of peering traffic ratios as
   a rational discriminator.
The Problems with Peering Traffic
Ratios

1.  Dictating Peering Ratio requirements
    force you are creating a competitor.
2.  Dictating Peering Ratio requirements
    ratios encourage companies to
    “creatively route”
3.  Peering directly can increase revenue.
Enter…Network Neutrality


Control over last mile.
•  Why is this important?
•  LastMile: expensive infrastructure to build,
   maintain, expand. We want to maximize
   shareholder value – give us revenue.
•  1000 times more expensive than a server
•  FedEx gets $ for every Amazon transaction
•  Amazon may eat the cost of delivery, but not for
   overnight delivery. Pay for higher performance.
•  Selling video? Share $ with delivery.
•  You are making $$$ loading my network.

                       Paid peering is part of the answer.
Network Neutrality – Content View


•  Emerging video services – video distro –
   40G movies to set top boxes
•  Peering is only way to do this effectively
•  Only outbound really
•  Massive volume, maybe off peak
   scheduling w/paid peering?
•  Google: Last Mile effective monopoly,
   launch their services w/o allowing
   competition…and Next Gen Services.
Summary


•  Both sides of the debate
•  What do you think?
•  Might Paid Peering be in the solution
   space for negotiated Network Neutrality?

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14 the folly-of-peering-ratios

  • 1. The  Great  Debate   Understanding  the The Folly of Peering Ratios ©2012  DrPeering  Interna7onal   Licensed  material  –  sales@DrPeering.net   h@p://DrPeering.net  
  • 2.                                         THE  INTERNET  PEERING   PLAYBOOKS   The  Tricks  of  the  Trade               2  
  • 3. The Folly of Peering Ratios? From Debate…
  • 4. The Great Peering Ratios Debate •  is based on the “Great Peering Debate” held in Los Angeles at the Peering BOF X •  using Peering Ratios as a discriminator for peering candidates •  Most commonly used by large Tier 2 and Tier 1 ISPs to deny peering w/content •  Here are the best arguments and counter arguments
  • 5. Argument #1 – “I don’t want to haul your content all over the world for free.“ Content Heavy ISP A P BigISP T T T Small requests Generate Access Big Responses Access Heavy Access Heavy Customer Heavy Customer Customer United States Europe
  • 6. Argument #1 – “I don’t want to haul your content all over the world for free.“ Access Heavy ISP A P BigISP T T T Small requests Generate Eyeball Content Eyeball Big Responses Content Customer Customer Content Customer Customer Customer United States Europe
  • 7. Argument #2 – “OK, but there is massive asymmetry here. Look at how many bit miles I have to carry your content, while you have only to deliver the traffic across the exchange point.” •  Distribution Argument •  Not related to ratios
  • 8. Argument #3 – “I don’t want to peer with Content Heavy ISPs because doing so will screw up my peering traffic ratios with my other peers.” Big Response Access P ISP X Heavy Small requests ISP Y $ e ns po es ISP Y:X gR T Out:In Bi 1:1 ratio Content Heavy ISP A
  • 9. Once we peer… Access P ISP X Heavy ISP Y $ sts re que ISP Y:X a ll T Sm Out:In P 1.2:1 ratio se Content espon Big R Heavy ISP A Conclusion 3A: If an Access Heavy ISP peers with a Content Heavy ISP, it can adversely affect its peering traffic ratios with its other peers.
  • 10. Big Response Content P ISP X Heavy Small requests ISP Y $ e ns o sp Re ISP Y:X T Big Out:In 1:1 ratio Access Heavy ISP A Conclusion 3B: If a Content Heavy ISP peers with an Access Heavy ISP, it can positively affect its peering traffic ratios with its other peers.
  • 11. •  (False) Conclusion 3: Peering traffic ratios are valid discriminators because they help maintain peering traffic ratios with other (existing) peers. •  While demonstrable, THIS IS A CIRCULAR ARGUMENT for the general question at hand.
  • 12. Argument #4 – “I want revenue for carrying your packets.” •  Counter-Argument #1 - All peering and transit relationships are negotiable business relationships, but peering traffic ratios are probably not the right metric for determining the terms of the relationship. •  Counter-Argument #2 - As discussed above, the cost of distribution is the same regardless of whether content or access heavy. A more appropriate negotiating discussion surrounds the incremental value provided to the content or access customers by the network in question. •  Counter-Argument #3 - And remember, you will have to carry this traffic by some means (transit or peering) to get it to your customers. So when negotiating, you are just negotiating for a different delivery mechanism to your customers – this may not command a high price.
  • 13. Argument #5 – “My backbone is heavily loaded in one direction – I don’t have the $ to upgrade the congested portion of the core in that direction without a corresponding increase in revenue.” •  Counter-Argument #1 - This may signal that you are neither a good peering nor a good transit provider candidate. •  Counter-Argument #2 - This loading problem can best be solved with better traffic engineering, with the allocation of more resources to the backbone, or by temporarily denying peering until the needed upgrades are done.
  • 14. Argument #6 – “I don’t want to peer with anybody else. I don’t have to – I have all the peering that I need. Peering traffic ratios help me systematically keep people out.” •  Counter-Argument - One could just as easily specify higher traffic volume, more points of interconnect, a larger backbone capacity into more geographic regions including ones that don’t make any sense. This is not a strong defense for the validity of peering traffic ratios as a rational discriminator.
  • 15. The Problems with Peering Traffic Ratios 1.  Dictating Peering Ratio requirements force you are creating a competitor. 2.  Dictating Peering Ratio requirements ratios encourage companies to “creatively route” 3.  Peering directly can increase revenue.
  • 16. Enter…Network Neutrality Control over last mile. •  Why is this important? •  LastMile: expensive infrastructure to build, maintain, expand. We want to maximize shareholder value – give us revenue. •  1000 times more expensive than a server •  FedEx gets $ for every Amazon transaction •  Amazon may eat the cost of delivery, but not for overnight delivery. Pay for higher performance. •  Selling video? Share $ with delivery. •  You are making $$$ loading my network. Paid peering is part of the answer.
  • 17. Network Neutrality – Content View •  Emerging video services – video distro – 40G movies to set top boxes •  Peering is only way to do this effectively •  Only outbound really •  Massive volume, maybe off peak scheduling w/paid peering? •  Google: Last Mile effective monopoly, launch their services w/o allowing competition…and Next Gen Services.
  • 18. Summary •  Both sides of the debate •  What do you think? •  Might Paid Peering be in the solution space for negotiated Network Neutrality?