Asia Pacific Peering Guidebook (v1.6)

1. Asia Pacific Peering Guidebook (v1.6) William B. Norton Co-Founder & Chief Technical Liaison

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?” 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” Freely available. See Web site or send e-mail to wbn@equinix.com Or Google for “William B. Norton”

5. Research Topic: Peering in Asia • Goals of this 12 month research • Document how the Internet Peering Ecosystems in Asia are different from the rest of the world • What did Peering Coordinators find counter-intuitive? • What surprises did they run into as they expanded their networks into and within Asia? • Result: “The Asia Pacific Internet Peering Ecosystem” (v1.6) • Value of IX, Peering Policies, Biz cases for Peering in AP Ecosystems, etc.

6. What is this “Peering Ecosystem?” • Global Internet Peering Ecosystem: A system of autonomous but interconnected Internet Regions, each with players that provide connectivity and content to the Internet.

7. The Global Internet Peering Ecosystem

8. Ecosystem Players • Tier 1 ISPs (ISPs that have access to all the Internet Peering Ecosystem routes solely through free peering relationships), • Tier 2 ISPs (that must buy transit from someone to reach routes within the Internet Peering Ecosystem), and • Content Providers who don’t sell access to the Internet but offer content.

9. Motivations: Peering Policy • Def: A Restrictive Peering Policy is an articulation of an inclination not to peer. • Def: A Selective Peering Policy is an articulation of an inclination to peer, but with some conditions • Def: An Open Peering Policy is an articulation of an inclination to peer with anyone.

10. Japan Peering Ecosystem In Japan, the set of Tier 1 ISPs include • Japan Telecom (JT Open Data Network (ODN)), • NTT (and Internet Initiative Japan (IIJ)), • KDDI, and • POWEREDCOM,

11. Japanese Peering Ecosystem

12. Japanese Peering Ecosystem • 80% JP Traffic stays in JP • Tier 1 ISPs own infrastructure • Major Disruption: Yahoo!BB (48Gbps) • 40+Mbps DSL for <$50 USD/mo • FTTH for $100/mo • 1Mbps streaming TV

13. Interconnect Region Traffic in Tokyo Distributed soon Y!BB especially

14. Domestic Peering in Japan BLPA peering@ doesn’t work – need legs o the ground Japanese surprises: 3 IXes. Which one to use? Monthly Peering cost=$2500 for local loop, $2500 for rack, $4500 FastE port Transit~$110 for 100Mbps commit Aggregate traffic volume 34Gbps Value of JPIX to participant=(34000Mbps*$110/Mbps)/109 - $11,500=$4096/mo

15. Business Case for JP Peering

16. JP Peering w/FastE

17. JP Peering w/FastE

18. JP Peering w/gigE

19. JP Peering w/gigE

20. Singapore Peering Ecosystem SingTel PI StarHub 20% stays in SG Transit is Expensive Gov’t

21. Business Case for SG Peering 2nd highest transit prices

22. SG Peering with FastE

23. SG Peering w/FastE

24. SG Peering w/gigE

25. SG Peering w/gigE

26. Australian Peering Ecosystem

27. Australian Peering Ecosystem • Only country to Regulate Peering • Restrictive Peering – Comindico Story • Local Loops Expensive in AU • Retail STM-1 (155M) in Hong Kong $3000/mo • Retail 4M Ethernet in Australia $3000/mo ternet • Relatively low traffic volume • 200Mbps traffic between T1 and T2 • “Content that transcends the language barrier” disallowed

28. AU Interconnect Regions Local Loops Expensive Volume Billing Grandma Story

29. Business Case for AU Peering Most expensive “End of the World”

30. AU Peering with FastE

31. AU Peering with FastE

32. AU Peering with gigE

33. AU Peering with gigE

34. 5 Reasons to expand into and within Asia • For Incumbent Tier 1 ISPs to peer their routes outside their home market. • To meet U.S. Tier 1 Peering Prerequisites. • Customers want them in Asia. • Global Marketing Benefits • Sell Transit into a high cost transit market. Costs to expand to Asia…

36. Lesson #1 - Tier 1 ISPs Do Not Want to Peer in their Internet Region • As described in the Foreign Tier 1 ISP Dynamic • Peering in Adjacent Internet Regions OK • Peering in U.S. • Also Get Cheap U.S. Transit • Also Get Across U.S. to Europe

37. Lesson #2 – There are Several Challenges Peering in Asia • Many Language Zones. • Language • Internet traffic • Asia is spread across timezones • Asia is spread across oceans • Local Loop Costs • Transit costs are highly variable and in some cases highly discriminatory across Asia:

38. Lesson #3 – Some Creative Peering Deals • “…Peering iff Transport provided to HK where we will peer out-of-country…” • Peering w/transit purchase common • Peered traffic can not be announced back in to country • Can not peer with my customers

39. Lesson #4 - International Peering Gotcha: “Tromboning” Traffic through the U.S. 1 AS Hop Across Ocean Beats 2 AS Hops Across Town

40. Lesson #5 - Local Presence Required • Right Person • Right Time • Manage Time Zone Diff • Manage Peering Socializing • Like old England “Intermediary” Source: Nigel Titley (FLAG) And Erasmus Ng (T-Systems)

41. Lesson #6 - Separation of International and Domestic Peering • New Zealand – Separate pipes for Transit & Domestic Traffic • Transpacific VERY expensive • 80% traffic to/from U.S. • In Japan & Australia as well? Source: Joe Abley (ISC)

42. Lesson #7 – “Content that Transcends the Language Barrier” • Hosted content not allowed in many parts of Asia • Hosted overseas • Large volume of traffic • Affects peering and Int’l BW planning

43. Lesson #8 – No True Regional Content in Asia • Like South America • Few Asian countries host regional content • Contiguous language zones: • Hong Kong, Taiwan, China • Mostly, local eyeballs want local content • Japan: 80% traffic stays in Japan • Singapore: 80% traffic leaves Singapore

44. Lesson #9 – Content Peering in Asia Works • Microsoft – 100M XP Updates • Only delivered over Peering links • Otherwise, overseas transit • Increases your 95th percentile billables • Yahoo! • Motivated first by best customer experience • Deployed content locally • Peering broadly

45. Summary • Early Research • International Peering Ecosystem • Internet Regions • Foreign Tier 1 ISP Peering Dynamic • Capture Peering Coordinator Data • Asia Vibrant and Leap Frogging U.S. in some ways • White Paper Available: Send e-mail to wbn@equinix.com