a question about the economics of peering

Alex Rubenstein alex at nac.net
Fri Nov 30 16:52:28 UTC 2001

Today, I was approached by *unnamed-ethernet-extension-company*. They
extend ethernets between several US and UK peering exchanges.

While speaking with them today, thier engineer and I got into a little bit
of a disagreement as to why people peer with each other at public exchange
points. My belief is that generally speaking, networks meet at public
exchange points (such as MAE-*, LINX, AMSIX, AADS, etc) is to exchange
traffic with each other more economically (read: save money).

His belief is that people will pay a premium to get to an exchange point,
because it's worth paying a premium to have 'less hops' between two

Essentially, he said that paying more for peering that for transit is
typical, and to be expected, and most people accept this.

Whats the common opinion on this?

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