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

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

Freely available. See Web site or send e-mail to
wbn_at_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 dont 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
Foreign Tier 1 Peering Dynamic

• Definition The Foreign Tier 1 Peering Dynamic
  occurs when a Tier 1 ISP in one Internet Peering
  Ecosystem expands into another Internet Peering
  Ecosystem and is relegated to a Tier 2 ISP status
  in that foreign Internet Peering Ecosystem.

11
Foreign Tier 1 Peering Dynamic
12
Understanding the Request for Tier 1 Peering.

• 1) give away that which is a strong competitive
  differentiator (Tier 1 Status in the region helps
  transit sales)
• 2) give away a cost minimizing function (since
  Tier 1s by definition dont pay transit fees for
  in region traffic) to a competitor, and
• 3) lose a transit revenue opportunity (by not
  selling transit to you!), and finally,
• enable a powerful foreign competitor to come in
  and undercut their business with free (peering)
  access to their customers.

13
Global Routes or Regional Routes?

• At the same time, UUNet may not want to peer all
  of its U.S. and European routes and
• 1) pay the cost to haul all of its U.S. customer
  traffic to Japan,
• 2) make it easier for NTT to sell access to the
  UUNet international customer base,
• 3) pay the cost to haul all of this Japan traffic
  around the world!

14
The Foreign Tier 1 Peering Dynamic is observed in
the other direction as well
15
The Business Case for Peering

• Applied to Japan, Singapore, Australia and Hong
  Kong
• Based on recent price quotes for Transit,
  Transport (local loops), collocation, IX
  services.

16
Peering vs. Transit
17
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,

18
Japanese Peering Ecosystem
19
Japanese Peering Ecosystem

• 80 JP Traffic stays in JP
• Tier 1 ISPs own infrastructure
• Major Disruption Yahoo!BB (48Gbps)
• 40Mbps DSL for lt50 USD/mo
• FTTH for 100/mo
• 1Mbps streaming TV

20
Interconnect Region
Traffic in Tokyo Distributed soon Y!BB especially
21
Value of an Internet Exchange

• Definition The Value of an Internet Exchange
  Point can be estimated by multiplying the amount
  of traffic peered across the IX and the price of
  transit.

22
Domestic Peering in Japan
BLPA peering_at_ doesnt work need legs o the
ground Japanese surprises 3 IXes. Which one to
use?
Monthly Peering cost2500 for local loop, 2500
for rack, 4500 FastE port Transit110 for
100Mbps commit Aggregate traffic volume
34Gbps Value of JPIX to participant(34000Mbps11
0/Mbps)/109 - 11,5004096/mo
23
Business Case for JP Peering
24
JP Peering w/FastE
25
JP Peering w/FastE
26
JP Peering w/gigE
27
JP Peering w/gigE
28
Singapore Peering Ecosystem
SingTel PI StarHub 20 stays in SG Transit
is Expensive Govt
29
Business Case for SG Peering
2nd highest transit prices
30
SG Peering with FastE
31
SG Peering w/FastE
32
SG Peering w/gigE
33
SG Peering w/gigE
34
Australian Peering Ecosystem
35
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

36
AU Interconnect Regions
Local Loops Expensive Volume Billing Grandma Story
37
Business Case for AU Peering
Most expensive End of the World
38
AU Peering with FastE
39
AU Peering with FastE
40
AU Peering with gigE
41
AU Peering with gigE
42
Hong Kong Peering Ecosystem
43
Business Case for Hong Kong Peering
44
HK Peering with FastE
45
HK Peering with FastE
46
HK Peering with gigE
47
HK Peering with gigE
48
HK Domestic Peering Points
49
5 Reasons to expand into and within Asia

1. For Incumbent Tier 1 ISPs to peer their routes
   outside their home market.
2. To meet U.S. Tier 1 Peering Prerequisites.
3. Customers want them in Asia.
4. Global Marketing Benefits
5. Sell Transit into a high cost transit market.

Costs to expand to Asia
50
(No Transcript)
51
Four International Peering Strategies
52
1) Extend into foreign country.
Country A
P?
Country B
AT1
BT1
AT1
No
53
2) Reciprocal In-Country Peering
Country A
P?
Country B
AT1
BT1
AT1
No
P?
BT1
AT1
BT1
No
Reciprocal Peering? No neither side agrees to
the others value assessment Neither side agrees
value is equal Rarely does this occur
5 reasonsT1 Adjacent
54
3) Half-Circuit Peering
Country A
Country B
BT1
AT1
You pay half, I pay half, We meet in the
middle. I pay East, You Pay West, etc.
55
3) Half-Circuit International Peering
56
4) Buy a Tier 1 ISP
Country A
AT1
BT1
Country B
AT1
57
4) Buy an ISP with Tier 1 peering in the foreign
region.

• Examples
• ACCC forced Telstra to peer with Optus,
  Connect.com, Ozemail
• Optus bought by SingTel
• Connect.com bought by Telecom New Zealand
• Ozemail bought by MCI
• NTT/Verio
• Level 3

58
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

59
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

60
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

61
Lesson 4 - International Peering Gotcha
Tromboning Traffic through the U.S.

• 1 AS Hop
• Across Ocean
• Beats
• 2 AS Hops
• Across Town

62
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)
63
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)
64
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 Intl BW planning

65
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

66
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

67
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_at_equinix.com