Internet Society Boosting Local Content and the Internet Economy The Internet Society 4/25/2017 Internet Society Boosting Local Content and the Internet Economy RONOG 29 October 2014, Bucharest Maarit Palovirta, European Regional Affairs Manager

The Internet Society 4/25/2017 Our Mission To promote the open development, evolution, and use of the Internet for the benefit of all people throughout the world.

Internet Access Value Chain The Internet Society 4/25/2017 Internet Access Value Chain International connectivity National backbone Middle mile Last mile Internet service

The Internet Society 4/25/2017 IXPs around the World Source: TeleGeography World IX Map, http://www.internetexchangemap.com/

Local Content and Internet Development The Internet Society 4/25/2017 Local Content and Internet Development Source: OECD/ISOC/UNESCO (2013): The Relationship between Local Content, Internet Development and Access Prices

Role of Internet Exchange Points (IXPs) The Internet Society 4/25/2017 Role of Internet Exchange Points (IXPs) Internet Exchange Points (IXPs) are now well recognised as a vital part of the Internet ecosystem and essential for facilitating a robust domestic ICT sector*. A primary role of an IXP is to: Keep local Internet traffic within local infrastructure and to reduce costs associated with traffic exchange between networks. Improve the quality of Internet services and drive demand by reducing delay and improving end-user experience. Create a convenient hub for attracting key Internet infrastructures within countries e.g. data hosting facilities. Act as a catalyst for overall Internet development including commercial, governmental and academic stakeholders. * See for example, the OECD’s recent report on Internet Traffic Exchange: http://www.oecd-ilibrary.org/science-and-technology/internet-trafficexchange_5k918gpt130q-en

Geography of Top Level Domain Names The Internet Society 4/25/2017 Geography of Top Level Domain Names

Attracting Regional & International Traffic The Internet Society 4/25/2017 Attracting Regional & International Traffic Average distance of participants from IXPs within each economy If one builds a local IXP, no matter how remote, ISPs from other regions will build infrastructure to reach it; Exchanges can become very successful even if they do not attract a substantial portion of intercontinental participants. Source: Packet Clearing House

Internet traffic projections 2013-18 in CEE*: The Internet Society 4/25/2017 Leveling up Your IXP Increasing capacity and outreach through additional IXP nodes or domestic backbone extension? Context: Growth of Internet traffic, especially video traffic. End-user demand for better quality broadband connections. Operators developing new sources of revenue to complement declining fixed-line rentals etc. EU/ national policy targets and subsidies: Coverage: Next Generation Access (>30 Mbps) for all by 2020; Uptake: 50% of households having 100 Mbps subscriptions (or higher) Internet traffic projections 2013-18 in CEE*: Internet x2,9 or GACR 24% Internet video x4 or GACR 33% Devices from 1bn to 1,6bn … *Source: Cisco Virtual Networking Index (VNI) 2014

The Internet Society 4/25/2017 Get Involved There are so many ways to support the Internet. Explore how you can make an impact. Become a Member Join a Chapter Attend an Event This is your Internet. Join it! www.internetsociety.org For any questions, please contact me at: palovirta@isoc.org