A Scottish Internet Exchange: Benefits, Viability, Options

1. A Scottish Internet Exchange: Benefits, Viability, Options Keith Mitchell Executive Chairman London Internet Exchange Ltd Director, NOMINET Chair, RIPE NCC http://www.linx.net/

2. Jargon Buster • IXP = Internet Exchange Point • NAP = Network Access Point • MAE = Metro Area Ethernet • same things • ISP = Internet Service Provider

3. Overview • What is anInternet Exchange Point ? • What are the benefits ? • Introduction to the LINX • What is co-location ? • When is it viable ? • What are the options for Scotland ?

4. History • 3 UK Internet Providers in 1992 • First IXP in US (“MAE-East”) in 1992 • Soon after in: • Stockholm, Amsterdam, Geneva • LINX founded in October 1994 by 5 members • now >150 UK ISPs in 1998 • >50 with direct international connections

5. What is an IXP ? • A network, usually in one building • Multiple ISPs connect the “edge” of their backbone to it • Facilitates traffic exchange (or peering) between ISPs • Peering involves exchange of customer traffic only • without going via distant 3rd parties

6. IXP Technologies • LAN based • needs backbone node co-location • e.g. Fast Ethernet, FDDI • most IXPs work this way • WAN based • avoids need for co-lo • dependent on single telco • e.g. Frame Relay, SMDS, ATM • few IXPs work this way

7. IXP Models • Owned & operated by telecoms carrier • most ISPs = carriers • common in US, e.g. MAEs, NAPs • not good for competition • Neutral member co-operative • common in Europe, e.g. LINX • Owned & operated by co-lo provider • e.g. Palo Alto IX

8. What are Benefits of IXPs ? • Avoid traffic going the long way round • Cheaper local bandwidth • Faster local access • One connection to many simpler & cheaper than many to each

9. IXP Benefits (1) • Keeps local traffic local: • UK traffic within UK • European traffic in Europe • Improves resilience • They work: • Even small countries have IXPs • Latvia, Luxembourg, Portugal

10. IXP Benefits (2) • Attract & consolidate infrastructure • Generate local business: • telecoms • co-location • content (export) • e-commerce (export) • Promote fair competition • Co-ordinate engineering

11. LINX Status • Established Oct 94 by 5 member ISPs • Now 57 members • steady linear growth • about 1 new member every month • UK, European, International members • Not-for-profit association of ISPs • Neutral locations in London Docklands • Telehouse • TeleCity

12. LINX Members 94-98

13. LINX Members

14. LINX Objectives • Primary Objective: “To provide efficient interconnectivity for the UK Internet” • Realise this by aiming to keep 100% of UK Internet traffic in the UK • Secondary Objective: “To promote the interests of its members” • Latter is only done on specific issues, and where there is formal approval of a major consensus among members.

15. LINX Organisation • Public company limited by guarantee • Membership meetings every 2 months • determine policy and strategy • Membership appoints Council of 6 at AGM • Full-time Executive Chairman • Office in Peterborough, Cambridgeshire • 7+ FTE staff

16. Co-Location Facilities • Computer “Hotels” • Sell (by the rack): • space • protected electricity • air conditioning • security • telecoms bearers • disaster recovery • value-added services

17. Telehouse • Located in London Docklands • on meridian line at 0º longitude ! • Built as disaster recovery centre • 24x7 manned, controlled access • Highly resilient infrastructure • Diverse fibre from most UK carriers • Diverse power from national grid, multiple generators • Owned by consortium: • KDD, Japanese banks, BT

18. Co-Lo and IXPs • Natural synergy • competitive market in one place • e.g. for content providers • ISPs need good backbone node sites • e.g. • Telehouse, TeleCity, Palo Alto IX • Help create critical mass of Internet, E-commerce business

19. When is an IXP viable ? • Mainly telecoms traffic economics • high cost of international circuits • Need 3-5 ISPs with about 2Mbps of local traffic each • local traffic typically about 30% of total traffic • i.e. about E3 = ~34Mbps total traffic into IXP coverage area

20. IXP Viability • IXPs almost always save money • Can build cheaply with: • £200 hub • £1500 routers • one rack • But better to re-invest savings • Costs extra network complexity • staff skills

21. IXP Viability - Unseen Elements • IXP and co-lo business may be viable together if not separately • Performance & cost benefits to all local Internet users • Out-of-region players may pay to connect to local market • international fibre ? • Other uses for infrastructure • e.g. disaster recovery, call centres

22. IXP Options for Scotland (1) • Neutral member co-operative • Need most of major ISP/telco players to participate • Set up not-for-profit member-owned IXP organisation • Put tender out for neutral fixed term contract co-location of IXP • commercial co-lo provider

23. IXP Options for Scotland (2) Combined Commercial Co-lo & IXP • Less good for competition • 2nd choice • More viable if lacking some major players • Will need significant investment up-front

24. Future of IXPs • Major growth area • International telecomms deregulation should reduce need for national IXPs (but not soon) • Small number of major pan-European Exchanges • Internet traffic growth will increase need for regional/metropolitan Exchanges

25. Summary • IXPs save money and grow business & infrastructure • Model proven in many other countries • We don’t know if one is viable in Scotland • but having one will greatly benefit local Internet industry