interconnection costs

Baldur Norddahl baldur.norddahl at
Thu Dec 24 02:10:14 UTC 2015


The counter example is the Netnod Stockholm IX that allows you to connect
via dark fiber from anywhere within Stockholm. The other large european
exchanges also offer multiple connection options.

"Aren't availability, guaranteed service and remote hands an incentive to
do peering inside a third party colocation? "

That really depends on your situation and who you are. As a residential ISP
our business is not in a DC. If we have any equipment at all there, it
would only be a router. But usually we do not want a router there, we just
want a connection. So in fact we do not want access to the facility at all.

If you are a content provider, you might have servers and what not. Then
sure. Or if you are large IP transit provider, you might want to host a
router, so you can sell to other customers at the DC (if it is a transit
neutral DC).

This is why we now see the rise of remote peering.



On 24 December 2015 at 01:39, Reza Motamedi <motamedi at> wrote:

> Aren't availability, guaranteed service and remote hands an incentive to
> do peering inside a third party colocation?
> I see very large numbers for xconnects for instance in Equnix [
>] and
> it made me believe buying xconnect is still a normal practice.
> Best Regards
> Reza Motamedi (R.M)
> Graduate Research Fellow
> Oregon Network Research Group
> Computer and Information Science
> University of Oregon
> On Wed, Dec 23, 2015 at 2:12 PM, Baldur Norddahl <
> baldur.norddahl at> wrote:
>> On 23 December 2015 at 20:05, Reza Motamedi <motamedi at>
>> wrote:
>>> In Private peering however the AS pays the colo provider for the xconnect
>>> per ASes that it wants to peer with. The cost of transit would be
>>> additional if the peering is in fact a transit and not settlement free.
>> You are still assuming there is a colo. But perhaps the most common case
>> is a multihomed company buying transit from two independent service
>> providers. The customer is at his office and the two service providers will
>> have their end somewhere in the city, perhaps even terminating their end of
>> the circuit in a street cabinet. The customer is multihomed and therefore
>> has his own AS. This is a peering situation with three AS numbers that fits
>> your description, it is private peering and there is no xconnect. Instead
>> there is usually a leased line cost, but this cost is often hidden from the
>> customer. Also the ISP might own the line (physical fiber) and the cost is
>> not a simple $/month.
>> But also two ISPs might peer in this way. Residual internet providers
>> have a ton of points of presences, so why choose a place where there is a
>> xconnect fee? We can peer anywhere in the city, including at a random
>> street cabinet. Often the cost of renting a dark fiber somewhere is lower
>> than a xconnect fee (a sign that datacenter owners are too greedy).
>> If one party is a content provider I give you that the peering point is
>> usually at a datacenter somewhere. But still, if the content provider is
>> big enough to run their own datacenter, we are back at the leased line case
>> again. Some content providers, even if small, prefer to just run their own
>> datacenter in the basement of their offices.
>> Regards,
>> Baldur

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