A local internet exchange point is
defined as a public peering point
serving the local internet industry.
Local means where it becomes cheaper to
interconnect with other ISPs at a common
location and it is to pay transit to
another ISP to reach the same consumer
base local can actually mean different
things in different regions local can
mean the local city local can mean the
local country it really does depend
where you are on the globe about what a
local internet exchange point is a
regional internet exchange point is also
a local internet exchange part but is
now large enough that it attracts
regional ISPs and ISPs from outside the
local area who want to appear with each
other once the regional ISPs start
peering of course they could offer
transit to some of the local providers
around this exchange part and the local
ISPs can pair with other ISPs from
outside the locality because they don't
compete in each other's markets they
don't have to pay transit costs to the
transit providers and quite often you
find the ISPs of disparate sizes and
influences will happy like peer with
each other simply 2d freight transit
costs it's cheaper for them to turn up
at a regional exchange point and peer
with each other than it is to buy
transit to do the same thing so which i
XP would we go to well it all depends on
how many routes are available what is
the traffic to and from these
destinations and by how much it will
reduce the cost of transit and only the
network operator who is asking these
questions can work out the answer as we
have covered in the multihoming
presentations looking at traffic flow
data net flow and so forth are very very
important to help decide where to turn
up there's no point going to an exchange
point if there's negligible traffic from
the networks that are connected
what is the cost of the colocation space
it was prohibitive of the space is not
available it's pointless going to that
exchange part what about the cost of
running a circuit to the location it
might be a very attractive location but
if the infrastructure to get there is
cost prohibitive or becomes competitive
with transit costs
it's pointless going to that exchange
part also what about the cost of remote
hands or remote assistance
if there are no remote hands would you
realistically jump in an aeroplane every
time there's an outage it means that
doing maintenance becomes very
challenging and is potentially costly if
there's a serious outage so just to
summarize this let's have a look at the
value propositions peering at a local
exchange point reduces latency and
transit costs for local traffic and it
improves the internet quality perception
after all the end user expects the fast
internet with local traffic low latency
and more or less unlimited bandwidth at
an exchange point
local peering and access to content
hosted locally or very close to an
exchange point is of vital importance to
ensure a happy customer base and a
vibrant local internet economy.
Participating at a regional exchange
point might well mean offsetting transit
costs to get access to the same content.
It also means we have to manage a
connection back to the whole network but
the most important thing we want to
achieve is to improve the internet
quality perception for our customers.
© Produced by Philip Smith and the Network Startup Resource Center, through the University of Oregon.
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