The Changing Settlement The Changing Settlement EnvironmentEnvironment

Keith Mitchellkeith@linx.net

Executive Chairman, London Internet Exchange

Re-Engineering the Internet, 27th Jan 1998

OverviewOverview

• UK Settlement Environment

–Internet & Dial-up

–Voice telephony

• Internet Peering Environment

Voice Telephony SettlementVoice Telephony Settlement

• Traditionally per-minute settlement from call originating carrier to terminating carrier

UK ISP Dial-upUK ISP Dial-up

• Local rate coverage needs 30-60 PoPs

• OLOs introduced “vPoP” service for ISPs

• Competition reduced prices, increased functionality

• Some instances of call termination revenue PTTOLOISP

Telecoms RegulationTelecoms Regulation

• UK Regulator Oftel

• Tension between:– Former PTTs– Licenced telco ISPs– Unlicenced ISPs– Other “independent” unlicenced

Service Providers (iSPs)

Should ISPs setShould ISPs setPeering Policy ?Peering Policy ?

• In general, YES– key autonomy issue for ISP

businesses

• BUT:– may need to regulate players with

significant market share– ideally take steps to avoid need to

do this

Peering Policy PrinciplesPeering Policy Principles

• “Self-regulatory” measures:

• Peering policies should be:

– registered

– in public domain

– consistently & fairly implemented

– stable

LINX BackgroundLINX Background

• LINX is UK national Internet Exchange Point

• Represents 43 largest UK ISPs

• Tries to encourage open peering and competition between ISPs

• Does not “regulate”

• Channel of communication between ISPs and regulators

LINX Peering EnvironmentLINX Peering Environment

• Restricted but published & well-defined membership criteria

• Minimum of interference in member peering autonomy

• Peering agreements private matter between members

• Incentives to peer• Disincentives to not peer

LINX Peering Practice (1)LINX Peering Practice (1)

• Members must peer with >=20% of other members:

– to remain member after 3 months

– to acquire voting rights

– may reduce and/or replace this “stick” with “carrot(s)”

LINX Peering Practice (2)LINX Peering Practice (2)

• Members must:– publish peering contacts– respond to peering requests within 2

days

• Peering matrix on web page converts routing registry data into end-user friendly format

Possible Peering Possible Peering IncentivesIncentives

• Additional membership status

• Additional facilities– e.g. switch ports– access to VA services

• Membership discounts

Peering ConclusionsPeering Conclusions

• Open peering can promote competition

• Closed bi-lateral exchange can inhibit it

• Open peering arbiter can facilitate competition:– as L1/L2 exchange– as organisational environment