Thanks Mich,<br><br>Quiet enlightening i must admit, i wonder what is going to happen with all this mergers and acquisitions in the data market, lets adopt a wait and see attitude to see what happens in 2010.<br>Regards<br>
<br><div class="gmail_quote">On Wed, Dec 30, 2009 at 4:27 PM, Michuki Mwangi <span dir="ltr"><<a href="mailto:michuki@swiftkenya.com">michuki@swiftkenya.com</a>></span> wrote:<br><blockquote class="gmail_quote" style="border-left: 1px solid rgb(204, 204, 204); margin: 0pt 0pt 0pt 0.8ex; padding-left: 1ex;">
Hi Barrack,<br>
<br>
Speaking for self; let me try and explain some of the factors that<br>
trigger the establishment of IXPs. (am intentionally staying clear off<br>
the issue and instead providing background to hopefully enrich the<br>
follow-up discussions)<br>
<br>
1) Cost of transit - if there's always going to be a high cost of buying<br>
transit capacity (buying access to other networks). This is often what<br>
we call buying upstream service from an international service provider<br>
<br>
2) More than 3 ISPs in a market - If there's more than 3 providers in<br>
one market, it makes economic sense to bring down their costs by<br>
exchanging traffic destined to each in a place thats within their<br>
control and not controlled by their upstream provider. Most upstream<br>
providers wont give you a local and international bill for traffic<br>
exchange. If there are two providers, direct interconnects would be<br>
sufficient.<br>
<br>
3) Open Other opportunities - Content hosting, content delivery and<br>
content creation will most often take root if theres a local market.<br>
IXPs serve as a local market where folks with content can access<br>
eyeballs at "peering" costs. Peering is often referred to as exchange<br>
of traffic between two networks at no fee.<br>
<br>
If the cost of transit is lower than that of peering and there are less<br>
than 3 providers in a market, the economic benefit of an IXP will be<br>
negligible.<br>
<br>
The question here is; what triggers more than one IXP in a market and<br>
whats defines the market boundary. IMHO the market boundary is often<br>
defined by the cost of leasing circuits. For instance the point where<br>
the cost of leasing a circuit of 1mbps from one point to another within<br>
a certain radius point A is often value X, beyond to radius point B the<br>
cost is value Y hence radius point A boundary is the market boundary.<br>
<br>
Having defined the market boundary and a prime example is Nairobi, would<br>
be worth to start the discussion on what would trigger having more than<br>
1 IXP.<br>
<br>
At this stage, its worth getting to know that there are two main types<br>
of IXPs i.e non-profit and commercial IXPs. In addition, its important<br>
to know that ISPs' have is called peering policies. The peering policies<br>
basically define the rules of engagement for members at the IXP. The<br>
most common one are bilateral or multi-lateral peering policy. In<br>
bilateral it means each member will have to negotiate with every member<br>
at an IXP (IXP is not involved) in order to establish peering. In a<br>
multi-lateral it means every member is subject to the same peering<br>
policy i.e peer with everyone at the IXP. As you may have guessed it the<br>
bilateral peering is most popular and preferred peering policy at most<br>
IXPs. This allows for ISPs to selectively decide whom to peer with.<br>
<br>
As a result, in any market there are small and large players. The large<br>
players have the ability to selectively decide whom to peer with will<br>
leads to the small players buying transit from the large players. Since<br>
the cost of transit is often higher than that of peering, other IXPs<br>
will emerge to cater for those who cannot easily fit into the existing<br>
IXP. The key aspect for this new IXP will be the peering policy in place<br>
to attract membership. The new IXP can also take the shape of commercial<br>
or non-profit.<br>
<br>
Please take a look at <a href="http://www.pch.net" target="_blank">www.pch.net</a> and see how dense IXPs are in Europe.<br>
Some cities like Paris and London have more than 1 IXP operated by<br>
different organizations or competing IXPs and both commercial and<br>
non-profit.<br>
<br>
Consequently, IXPs in different markets are never directly<br>
interconnected and for this very same reason, competing IXPs in the same<br>
market would not be interconnected. As a result, its common to find an<br>
ISP participating in IXPs in different markets i.e in Nairobi and in<br>
London and also in other competing IXPs in the same market. For an ISP<br>
the more they can peer the lower their costs.<br>
<br>
Countries like South Africa have more than one IXP in different markets<br>
i.e one in Jburg, another in Grahamstown, and the recently<br>
re-established Capetown IXP. Other countries have many players (large<br>
and small) and with lots of content being created in those markets<br>
having more than one IXP is often feasible each attracting a different<br>
group of ISPs based on their peering policies.<br>
<br>
In conclusion, the key point to remember is that an IXP will remain<br>
viable if its able to reduce the cost of delivering packets from one<br>
network from another. If its expensive then the cost of delivering<br>
packets from one network to another will be same as transit costs and<br>
therefore diminish its own value. Unless the IXP is providing access to<br>
premium content that would otherwise be accessible via transit costs its<br>
less likely to attract membership. Lastly, an IXP is just a Switch. The<br>
question to have in mind is what attracts folks to come connect to your<br>
switch where there are more than one.<br>
<br>
I hope that gives sufficient background and info to enrich this<br>
discussion further.<br>
<br>
Regards,<br>
<br>
Michuki.<br>
<div><div></div><div class="h5"><br>
<br>
Barrack Otieno wrote:<br>
> Listers,<br>
><br>
> I was going through an article in the East African standard with the<br>
> above mentioned title by the CEO of KIXP published on Sunday Dec 2009<br>
> in the East African Standard, am wondering is there a business case<br>
> other than the security considerations highlighted that justifies the<br>
> GIXP and if we could be allowed to access it or is it classified info?,<br>
> in addition the writer has mentioned the Strengths of KIXP however i<br>
> would also appreciate to know the weaknesses since they might justify<br>
> the need for GIXP bearing in mind the fact that we are just coming out<br>
> of the woods in so far as monopolies are concerned as i try to digest<br>
> the article in any case having gone through<br>
> <a href="http://www.bgp4.as/internet-exchanges" target="_blank">http://www.bgp4.as/internet-exchanges</a> it is evident there are a few<br>
> developed countries with more that one Exchange point eg South Africa ,<br>
> the US, Sweden, Singapore, Russia and the UK, somebody educate me.<br>
><br>
> Regards<br>
><br>
> --<br>
> Barrack O. Otieno<br>
> Administrative Manager<br>
> Afriregister Ltd (Ke)<br>
> P.o.Box 21682<br>
> Nairobi 00100<br>
> Tel:<br>
> +254721325277<br>
> +254733206359<br>
> +254202498789<br>
> Riara Road, Bamboo Lane<br>
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</blockquote></div><br><br clear="all"><br>-- <br>Barrack O. Otieno<br>Administrative Manager <br>Afriregister Ltd (Ke)<br>P.o.Box 21682<br>Nairobi 00100<br>Tel:<br>+254721325277<br>+254733206359<br>+254202498789<br>Riara Road, Bamboo Lane<br>
<a href="http://www.afriregister.com">www.afriregister.com</a><br><a href="http://www.afriregister.co.ke">www.afriregister.co.ke</a><br>ICANN accredited registrar.<br>Skype: barrack.otieno<br>