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The Changing Settlement Environment

The Changing Settlement Environment. Keith Mitchell keith@linx.net Executive Chairman, London Internet Exchange Re-Engineering the Internet , 27th Jan 1998. Overview. UK Settlement Environment Internet & Dial-up Voice telephony Internet Peering Environment. Voice Telephony Settlement.

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The Changing Settlement Environment

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  1. The Changing Settlement Environment Keith Mitchell keith@linx.net Executive Chairman, London Internet Exchange Re-Engineering the Internet, 27th Jan 1998

  2. Overview • UK Settlement Environment • Internet & Dial-up • Voice telephony • Internet Peering Environment

  3. Voice Telephony Settlement • Traditionally per-minute settlement from call originating carrier to terminating carrier

  4. UK 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 PTTOLOISP

  5. Telecoms Regulation • UK Regulator Oftel • Tension between: • Former PTTs • Licenced telco ISPs • Unlicenced ISPs • Other “independent” unlicenced Service Providers (iSPs)

  6. Should ISPs setPeering 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

  7. Peering Policy Principles • “Self-regulatory” measures: • Peering policies should be: • registered • in public domain • consistently & fairly implemented • stable

  8. LINX 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

  9. LINX 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

  10. 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)”

  11. 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

  12. Possible Peering Incentives • Additional membership status • Additional facilities • e.g. switch ports • access to VA services • Membership discounts

  13. Peering 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

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