1. Why SingTel Won’t Peer William B. Norton Co-Founder & Chief Technical Liaison Equinix, Inc. Asia Pacific Peering Forum Singapore, Oct. 5, 2006 Slide Set 1.2

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?” 7 years of researching/documenting White paper process..

3. Community Operations Research 1.“Ground Truth” w/dozens of experts 2.Write White Paper v0.1 3.Walk community through WP for comments 4.Revise White Paper into new version 5.Present White Paper at conferences 6.Solicit comments over lunches and dinners White papers so far…

4. Internet Operations White Papers 1)“Interconnection Strategies for ISPs” 2)“Internet Service Providers and Peering” 3)“A Business Case for Peering” 4)“The Art of Peering: The Peering Playbook” 5)“The Peering Simulation Game” 6)“Do ATM-based Internet Exchanges Make Sense Anymore?” 7)“Evolution of the U.S. Peering Ecosystem” 8)“Asia Pacific Peering Guidebook” 9)“A Business Case for Peering in 2004” 10)“The Folly of Peering Ratios?” Freely available. See Web site or send e-mail to wbn@equinix.com Or Google for “William B. Norton” Introduction-Basic Definitions

5. Def: Transit The Internet is a Network of Networks. An ISP sells access to the Internet, so… …must itself get attached to someone who is already attached to the Internet. Transit Provider B Transit Provider A $ meter 1 ) Transit Provider sells metered Internet access.

6. Def: Peering Transit Provider B Transit Provider A 2) Peering is a business relationship whereby two companies RECIPRICALLY exchange access to each others customers. Why Peer? 1.Reduce Transit Costs 2.Lower Latency 3.More Control over Traffic Peering

7. AU Internet Region SG Internet Region US Internet Region Global Internet Peering Ecosystem Tier 1 ISPs Tier 2 ISPs Content Providers What is this Internet Peering Ecosystem anyway? Characteristics of these Ecosystem Organisms?

8. Ecosystem Member: Tier 1 ISP TT $ $… P Tier 1 ISP P Def: A Tier 1 ISP is an ISP that has access to the ENTIRE Internet Region Routing Table Solely via Peering Relationships (Doesn’t buy transit from anyone to reach any destination in the Internet Region.) Motivation: Is NOT motivated to Peer in region to reduce transit fees, Is NOT motivated to peer with anybody else. Behavior: “Restrictive” Peering Policy

9. Ecosystem Member: Tier 2 ISP TT $ $… P P Def: A Tier 2 ISP is an ISP that has to purchase Transit to access some part of the Internet Region. Motivation: Is motivated to Peer in region to reduce transit fees. Behavior: “Open” Peering or “Selective” Peering Policy Active in Peering Forums TT $$ … Tier 2 ISP

10. Content Providers Def: A Content Provider focuses on content development and does not Sell access to the Internet. Motivation: SLAs w/well known ISP Behavior: “No Peering” Policy TT $$ … Content Provider

11. Generic Peering Ecosystem Tier 1 ISPs Tier 2 ISPs Content Providers T T TT T T T TT TTT $ flow up Active Peering Groups Peering Forums IX Meetings Test: Apply defs…

12. Apply Defs: Peering Dynamics & Motivations Tier 2 ISP Content Provider Tier 2 ISP T T T P $ $ $ P? No, like $. P? No, like $, & I Like customer B No, I already hear your routes for FREE! Synch Point: You have all the defs needed to predict behavior in the Peering Ecosystem. You should be able to answer the question at hand. Tier 1 ISP Y P?

13. Why SingTel Won’t Peer?

14. That’s right. They don’t have to.

15. Why SingTel Won’t Peer? They don’t have to. And, No different from other Tier 1’s in the world

16. How much Will this “Free Peering” Cost me? $/Mbps # of Mbps Cost of Traffic Exchange Transit Amount of Traffic Exchange Internet ISP B +Exchange Point Colo +Peering Port x Router Local Loop =Monthly Recurring Cost of Peering ISP A Peering Breakeven Point (P BE ) PeeringCost=TransitCost Peering vs. Transit

17. How much Will this “Free Peering” Cost me? $/Mbps # of Mbps Cost of Traffic Exchange in Singapore Transit $150/Mbps Amount of Traffic Exchange Internet ISP B + Rack Space $700 +100M Peering Port x $800 45M Local Loop $3000 =$4500 per month ISP A Peering Breakeven Point (P BE ) PeeringCost=TransitCost Peering vs. Transit Conclusion: If you can peer 30Mbps-45Mbps, Peering it will be cheaper than transit Scale up…

19. # ISPs Value of an IX # of Participants at IX Cost of Building in to IX Value of an Internet Exchange $ value Transit saved Peering Breakeven Point (P BE ) Cost=Value Derived