[7238] in North American Network Operators' Group
Re: peering charges?
daemon@ATHENA.MIT.EDU (Howard C. Berkowitz)
Sun Jan 26 11:24:21 1997
In-Reply-To: <Pine.SOL.3.95.970126014929.15867A-100000@queber.acsi.net>
Date: Sun, 26 Jan 1997 11:19:12 -0500
To: "Eric D. Madison" <madison@queber.acsi.net>
From: "Howard C. Berkowitz" <hcb@clark.net>
Cc: Dave Curado <davec@ziplink.net>, nanog@merit.edu
At 2:04 AM -0500 1/26/97, Eric D. Madison wrote:
>I don't think anyone has actually started charging "settlements" which is
>what your CEO is probably talking about. It's been a rumor for quite a
>while that settlement based peering will happen. Very similar to how the
>utilities companies manage "traffic". You would count bits into your
>network from peer X and he would count bits from your network, whoever has
>the lowest number has to pay the difference. So, if you are a small
>provider, your going to have to pay the big boys to carry your customers
>traffic. Welcome to the new Internet, where the bottom line is the
>driving factor. Especially since the margins are so low and no-one has
>made any money yet (will we ever?).
A good reference on financial issues in peering models is
http://iepg.org/settlements.html, a paper by Geoff Huston.
>
>Since some of the larger vendors (Cisco mostly) has introduced accounting
>features into their software settlements could start any time. It's just
>a matter of time until someone actually announces it.. who will jump
>first? I have my guess but I don't think I want to announce it publicly.
>:)
>
>Eric
>
>On Sun, 26 Jan 1997, Dave Curado wrote:
>
>>
>> Curious thing, the CEO of my company called me the other
>> day and was worried about who we were peering with.
>> It seems someone put a bug in his ear that the larger
>> providers were about to start charging some of the smaller
>> providers for bilateral peering.
>>
>> I haven't heard anything about that at all... so either
>> a) the ceo is mistaken
>> b) I've missed some important annoucement recently
>>
>> either is possible.
>>
>> Has anyone else heard anything about this?
