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Why SingTel Won’t Peer

Why SingTel Won’t Peer. William B. Norton Co-Founder & Chief Technical Liaison Equinix, Inc. Asia Pacific Peering Forum Singapore, Oct. 5, 2006. Slide Set 1.2. Internet Researcher. 90% externally focused Many documents on Protocols Lack of Operations documents Research: Peering

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Why SingTel Won’t Peer

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  1. Why SingTel Won’t Peer William B. Norton Co-Founder & Chief Technical Liaison Equinix, Inc. Asia Pacific Peering Forum Singapore, Oct. 5, 2006 Slide Set 1.2

  2. Internet Researcher • 90% externally focused • Many documents on Protocols • Lack of Operations documents • Research: Peering • How does Peering work? • What are the definitions? • What are the “Tricks of the Trade?” • 7 years of researching/documenting White paper process..

  3. Community Operations Research • “Ground Truth” w/dozens of experts • Write White Paper v0.1 • Walk community through WP for comments • Revise White Paper into new version • Present White Paper at conferences • Solicit comments over lunches and dinners White papers so far…

  4. Internet Operations White Papers • “Interconnection Strategies for ISPs” • “Internet Service Providers and Peering” • “A Business Case for Peering” • “The Art of Peering: The Peering Playbook” • “The Peering Simulation Game” • “Do ATM-based Internet Exchanges Make Sense Anymore?” • “Evolution of the U.S. Peering Ecosystem” • “Asia Pacific Peering Guidebook” • “A Business Case for Peering in 2004” • “The Folly of Peering Ratios?” Freely available. See Web site or send e-mail to wbn@equinix.com Or Google for “William B. Norton” Introduction-Basic Definitions

  5. The Internet is a Network of Networks. Def: Transit An ISP sells access to the Internet, so… …must itself get attached to someone who is already attached to the Internet. 1)Transit Provider sells metered Internet access. Transit Provider A Transit Provider B $ meter

  6. 2) Peering is a business relationship whereby two companies RECIPRICALLY exchange access to each others customers. Def: Peering • Why Peer? • Reduce Transit Costs • Lower Latency • More Control • over Traffic Transit Provider A Transit Provider B Peering

  7. Characteristics of these Ecosystem Organisms? What is this Internet Peering Ecosystem anyway? Global Internet Peering Ecosystem AU Internet Region SG Internet Region US Internet Region Tier 1 ISPs Tier 2 ISPs Content Providers

  8. Tier 1 ISP Ecosystem Member: Tier 1 ISP P Def: A Tier 1 ISP is an ISP that has access to the ENTIRE Internet Region Routing Table Solely via Peering Relationships P $ $ … T T (Doesn’t buy transit from anyone to reach any destination in the Internet Region.) Motivation: Is NOT motivated to Peer in region to reduce transit fees, Is NOT motivated to peer with anybody else. Behavior: “Restrictive” Peering Policy

  9. Tier 2 ISP $ $ Ecosystem Member: Tier 2 ISP T … T P Def: A Tier 2 ISP is an ISP that has to purchase Transit to access some part of the Internet Region. P $ $ … T T Motivation: Is motivated to Peer in region to reduce transit fees. Behavior: “Open” Peering or “Selective” Peering Policy Active in Peering Forums

  10. Content Provider $ $ Content Providers T … T Def: A Content Provider focuses on content development and does not Sell access to the Internet. Motivation: SLAs w/well known ISP Behavior: “No Peering” Policy

  11. Active Peering Groups Peering Forums IX Meetings Generic Peering Ecosystem Tier 1 ISPs T T T T T T T T T $ flow up Tier 2 ISPs T T T Content Providers Test: Apply defs…

  12. P? No, like $. P? No, like $, & I Like customer B P? No, I already hear your routes for FREE! Apply Defs: Peering Dynamics & Motivations Tier 1 ISP Y Tier 1 ISP Y P $ T $ T Tier 2 ISP Tier 2 ISP $ T Content Provider Synch Point: You have all the defs needed to predict behavior in the Peering Ecosystem. You should be able to answer the question at hand.

  13. Why SingTel Won’t Peer?

  14. Why SingTel Won’t Peer? That’s right. They don’t have to.

  15. Why SingTel Won’t Peer? They don’t have to. And, No different from other Tier 1’s in the world

  16. Internet Cost of Traffic Exchange $/Mbps Peering vs. Transit Local Loop +Exchange Point Colo +Peering Port x Router =Monthly Recurring Cost of Peering Transit # of Mbps Amount of Traffic Exchange ISP A How much Will this “Free Peering” Cost me? ISP B Peering Breakeven Point (PBE) PeeringCost=TransitCost Peering

  17. Internet Peering vs. Transit Cost of Traffic Exchange in Singapore ISP A $/Mbps 45M Local Loop $3000 + Rack Space $700 +100M Peering Port How much Will this “Free Peering” Cost me? $800 x =$4500 per month ISP B Peering Breakeven Point (PBE) PeeringCost=TransitCost Conclusion: If you can peer 30Mbps-45Mbps, Peering it will be cheaper than transit Transit $150/Mbps Peering # of Mbps Amount of Traffic Exchange Scale up…

  18. Value of an IX $ value Transit saved Value of an Internet Exchange Peering Breakeven Point (PBE) Cost=Value Derived Cost of Building in to IX # ISPs # of Participants at IX

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