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Access Power Peering A historical perspective on The Evolution of the Internet Peering Ecosystem William B. Norton Executive Director DrPeering International The 2 nd Workshop on Internet Economics (WIE11) DR PEERING December 1-2, 2011


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Access Power Peering

William B. Norton Executive Director DrPeering International

The Cooperative Association for Internet Data Analysis The 2nd Workshop on Internet Economics (WIE’11) December 1-2, 2011 San Diego

DR PEERING

I N T E R N A T I O N A L

A historical perspective on The Evolution of the Internet Peering Ecosystem

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William B. Norton

— 1987 NSFNET / 1995-1998 NANOG Chair — Equinix, 1998-2008, Co-Founder & Chief Technical

Liaison

— DrPeering, Executive Director – Keep info public

— Ask.DrPeering.net – DECIX Newsletter — Consulting – GLG Expert Network, Peering Workshops — Work with mostly (private) clients – teams up-to-speed — Peering White Papers (public)

The Peering White Papers…

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The Peering White Papers

— 10 years of Process = 1000’s

  • f conversations

— Assimilate mindset of the

Peering Community — Collect data. Walkthroughs. — Share at Conferences — Refine Primary Research & feed

back

— Results

— White Papers — Web Pages — Book-excerpts used in this

preso

Unexpected audiences…

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Financial Book review

“This book is fantastic!” – Industry analyst fantastic |fanˈtastik| adjective 1 imaginative or fanciful; remote from reality: novels are capable of mixing fantastic and realistic elements.

  • of extraordinary size or degree: the prices were fantastic,

far higher than elsewhere.

  • (of a shape or design) bizarre or exotic; seeming more

appropriate to a fairy tale than to reality or practical use: visions of a fantastic, mazelike building. 2 informal extraordinarily good or attractive: your support has been fantastic.

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The Evolving Internet Peering Ecosystem

All about Context Why should we care about context?

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My Airplane Story

— NWA Flight DTW-LAX Delay à Cancel — Rebook, go to gate 34 (short walk) — On plane. Boarding disgruntles — Flight attendant: “sit anywhere” — Delayed… Palpable Anger

What happened?

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What happened?

— Back at gate — Flight was Cancelled — “Room for 15-20 passengers” — “Proceed in orderly fashion” — “Will handle as many as we can” — 154 frantic people hauled ass — Line à special case override à Mob Scene — Get the yellers out of the line — Aggression, pushing, shoving, Detroit cops called in

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Who is responsible for riot?

— Airline vs. Passengers — Show of hands

— ___ Airline 100% Passengers 0% responsible — ___ Airline 90% Passengers 10% responsible — ___ Airline 80% Passengers 20% responsible — ___ Airline 70% Passengers 30% responsible — : — ___ Airline 0% Passengers 100% responsible

Does Context drive Behavior?

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The Peering Problematic

— Just as context drives behavior in the airline story,

context drives behavior in the peering ecosystem

— Evolving Internet Peering context

— Positional power — Predictable Behavior

— This is a talk about the future of peering

— Trajectory from the past

— Discussion chapters in The Internet Peering

Playbook

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History of Internet Peering Contexts

ARPAnet NSFNET

  • 1987-1994

TRANSITION

  • 1994-1997

COMMERCIAL

  • 1998-2002

Fat Middle

  • 2000-2009

Access Powers

  • 2009à
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1st Peering: ARPANET 80’s

— USENET/BITNET/X.25 could not connect — ARPAnet limited to gov’t & contractors — CSNet-NSF project to connect all CS depts — Spotlighted AUP problem — Bureaucratic complexity

— Settlement of financial, admin, contract etc.

— Peering is “interconnection without explicit

accounting or settlement”

Source: Lyman Chapin http://www.interisle.net/sub/ISP%20Interconnection.pdf http://drpeering.net/AskDrPeering/blog/articles/Ask_DrPeering/Entries/2010/10/22_Origins_of_Internet_Peering.html

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NSFNET – ‘87-’94

Core Open Regional Techs GrowthàTime to privatize NSF

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NSFNET Transition – ’94-’96

MAE-East* Sprint NAP AADS NAP PacBell NAP

Chair & commercial interests

Strong NANOG Chair model Interconnect a private matter

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Commercial Internet – ’96-’98

Resale & Growth Congestion Points àPrivate Peering Little visibility/sharing

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Tier 1 Club Private Peering Migration

AT&T Sprint Verizon NTT Level3 Qwest

Tier 1 Club

All settlement-free Peering Interconnections

Tier 1 ISPs abandon NAPs Congestion at NAPs NAPs run by competitors Reduce complexity – fiber breaks less often than active electronics Full Mesh in each of 8 interconnect regions across the U.S. Metro-Area Circuits

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Cost Savings of Exchange Point Interconnection over Circuit-based Interconnection Strategy ($50,000) $0 $50,000 $100,000 $150,000 $200,000 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 # of exchange partners Monthly Cost Savings

2000-2001

— Carrier Neutral Internet Exchange Points (PAIX/EQIX) — Proved financially better if at least 5 Tier 1’s build in

and do fiber cross connects

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Commercial Internet

Internet Growth Organic With Structure:

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Basic Internet Peering Ecosystem

Tier 1 ISPs have access to The entire Internet Region routing Table solely via their free peering Interconnects. They do not pay transit fees to reach any destination in their Internet Region. Revenue and traffic flows to T1s. Tier 2 ISPs are everyone else. Pay transit fees. Interested in peering around transit providers. Attend Peering Fora

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Fat Middle Peering ’98- today

Tier 1 ISPs

Tier 2 ISPs Content Providers

$ $

Transit Transit

Cable Companies

P

Large Scale Network Savvy Content Providers

P P $

Transit

CDNs

$

Transit

P P $

Transit

New Players @home bankrupt CDNs LSNSCP “Open” Peers : “Selective Peers” Peering decreases T1’s transit fees Growth increases at a faster rate

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Transit Prices & Video

Video 2010: 40-50% Source: discussions with ISPs Video 2013: 80% Source: Cisco $1200/Mbps $120/Mbps $12/Mbps $1.20/Mbps

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Captive Access Power Peering

Tier 1 ISPs

Tier 2 ISPs Content Providers

$ $

Transit Transit

Cable Companies

PP

Large Scale Network Savvy Content Providers

PP PP $

Transit

CDNs

$

Transit

P P $

Transit

$ $ $ PP $

The most interesting shift in positional power yet!

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Captive Access Power Peering

Comcast-Level 3 Disclaimer: The facts here have not been verified. This is for discussion purposes only. The Comcast-Level 3 – NetFlix situation is used because it is a very public example that illustrates the power positions

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Captive Access Power Peering Example

Global Crossing

A Comcast Akamai PP

Level 3 Global Crossing

PP $ $

Transit A

millions of broadband homes

Level3 broad business deal Fiber, transit, free peering (on-net), etc. 3 Ways to reach Comcast 1) Transit (AàGLBXàComcast) 2) Paid Peering (A->Comcast) 3) Peering (A->Comcast) w/vol & <2.5:1 Video is highly asymmetric up to 30:1 Comcast peering ratio 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 alternative path to Comcast eyeballs but through Comcast (Captive customers) If you are in the video distro biz you must buy paid peering from Comcast TATA $ T P $ T $ T $ T

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1) NetFlix Application 2010

LimeLight Networks Comcast Akamai PP

Level 3

PP $ $ millions of broadband homes NetFlix NetFlix Transit $ Peering

NetFlix distributes Video via CDNs Massive growth O(100’sGbps) Great Service $ T $ T

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2) Level3 Bids Cheaper

NetFlix LimeLight Networks Comcast Akamai PP

Level 3

PP $ $ millions of broadband homes NetFlix NetFlix Transit $ Peering

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

Access Power Peering

Comcast says (in essence) “We have others paying us. It wouldn’t be fair not to charge you as well”

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3) Result & Observation

NetFlix LimeLight Networks Comcast Akamai PP

Level 3

PP $ $ millions of broadband homes NetFlix NetFlix Transit $ Peering PP $ t v $

Comcast leverages peering to get $$ from all sides No alternative to reach Comcast customers “Captive” Customers Can’t peer around them Can’t choose competitor Exploiting Market power position: Captive Market Where is this going? Is this the right model?