A Scottish Internet Exchange: Benefits, Viability, Options Keith Mitchell Executive Chairman London Internet Exchange Ltd Director, NOMINET Chair, RIPE NCC

Jargon Buster IXP= Internet Exchange Point NAP= Network Access Point MAE= Metro Area Ethernet èsame things ISP= Internet Service Provider

Overview What is an Internet Exchange Point ? What are the benefits ? Introduction to the LINX What is co-location ? When is it viable ? What are the options for Scotland ?

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

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

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

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

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

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

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

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

LINX Members 94-98

LINX Members

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.

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

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

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

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

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

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 èstaff skills

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

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

IXP Options for Scotland (2) Combined Commercial Co-lo & IXP Less good for competition è2nd choice More viable if lacking some major players Will need significant investment up-front

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

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