Re: Provider credibility - does it matter? was Re: Inter-provider relations

[alex () relcom eu net]

We have the same picture there.

If we have 1000 kilimoters back-bone, we include the cost of this
back-bone into our prices, and sell 64K for (for example) 100bokazoids.

If small ISP crinix opens free-of-chsarge peering with  us, he must not
include the cost of back-bone into their prices, and they sell 64K for
50 bokazoids.

This mean we can't allow free-of-charge peering with them.

>   Karl Denninger  <karl () Mcs Net> wrote:
>
>   >Any provider that does not recognize the value of bilateral, no-settlement
>   >peering anywhere that its cost-effective for both parties (ie: if you have
>   >traffic destined for me, get it on MY network where I'm being paid to
>   >carry it and let ME figure the rest out!) deserves what they get.
>
>   Zero-settlement peerings open to anyone are demonstrably amount to
>   subsidies from large peers to small.
>
>   That already was beaten to death.  However, i repeat the argument:
>
>                                    Big Provider
>   Customer A ---[POP] ------------- 1000 miles -----------[POP]
>                                                             |
>                                                            IXP
>                                                             |
>                             Customer B ------[POP]-1 mile-[POP]
>                                                Small Provider
>
>   When customers A and B talk Big Provider pays to get them through
>   1000 miles.  Small Provider pays for 1 mile.
>
>   Note that i didn't even talk about less measurabe, but way too
>   more important things like hosting of information suppliers.
>   Say, Big Provider connects 1000 web sites; Small Provider hosts
>   1 site -- benefit from peering in terms of Web site diversity to
>   the Big Provider's customers is 0.1%.  To Small Provider's
>   customers the benefit of peering is 99.9%.
>
>   Zero-settlements work only when peers are of comparable size.
>   Any attempt to extort pressure to force it upon anyone simply
>   causes large folks to flee.
>
>   --vadim

--- 
Aleksei Roudnev, Network Operations Center, Relcom, Moscow
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