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Australia Investigates Peering Practices

Anonymous Sniper writes "The Australian Competition and Consumer Commission today announced that it will hold a public inquiry into whether an Internet interconnection [peering] service should be regulated. This would mean the big National ISPs would have to pay smaller ISPs for traffic originating within their networks, which means everyone's routing tables would become more efficient, and cheaper for the smaller ISPs. This would also set a significant international precedent. Horray for the ACCC and Allan Fels - the same people who made Region-Free DVD players legal here."

14 of 177 comments (clear)

  1. whew by Anonymous Coward · · Score: 5, Funny

    I thought it was going to be an article telling me I can't get no more warez

  2. Death to Sprint by Cyberwlf · · Score: 5, Funny

    So long as any regulating does not remove our right to seek and destroy those who run horrendously poor peer's like Sprint.

  3. I didnt get this by RTPMatt · · Score: 5, Informative

    I know i didnt get this, so i think this is the important info:
    "There are some apparent curiosities with current interconnection arrangements. If I am connected to a smaller ISP and I send an email to my friend at one of the four larger ISPs, the larger ISP will generally charge my smaller ISP for sending the email. However, when my friend at the larger ISP sends me a return email, my smaller ISP will have to pay the larger ISP once again".
    ya, that dosnt sound real fair

  4. Good thing by Anonymous Coward · · Score: 5, Interesting

    Anything that goes to help out the smaller guys is a good thing. After all, the big guys gobble the little ones up, and then give crappy service for an ever increasing price.

    Perhaps this will let these beloved little IPSs survive just a little bit longer.

    Anything to keep the internet how it should be is a good idea, and it is nice to see the Aussie gov't protecting capitolism by leveling the playing field. After all, more compeition = better experience for every consumer.

    1. Re:Good thing by jkfresh · · Score: 5, Insightful

      Anything that goes to help out the smaller guys is a good thing. After all, the big guys gobble the little ones up, and then give crappy service for an ever increasing price.

      Perhaps this will let these beloved little IPSs survive just a little bit longer.

      Anything to keep the internet how it should be is a good idea, and it is nice to see the Aussie gov't protecting capitolism by leveling the playing field. After all, more compeition = better experience for every consumer.

      Not only a better experience, but also better prices. Usually if there are only a few competitors in a market, the prices for that good/service will be very similar. A good example of this is gas. No matter who you get your internet service from its the same internet. Anybody that wants to should have a chance to compete in that market.

  5. Fight centralization by arvindn · · Score: 5, Insightful

    Anything that leads to a more distributed internet is a Good Thing, IMHO. Lack of centralization is the biggest reason why the net has been successful, but recent trends are disturbing (eg: ICANN). OTOH, the US-centeredness of the internet has decreased greatly since the early days, which is good. Another thing: with the growth of permanent connections worldwide as against dialup, more and more of the average Joes will host their webpages on their own machine (like me :)), as against uploading it to some free server, which would typically be in the US. So maybe things are going to get better.

  6. Uhhh... one thing you're forgetting by pr0ntab · · Score: 5, Insightful

    The small ISPs aren't paying for the large ISPs backbone, and the usage flows both ways through it.

    You don't GET PAID driving down a toll road one way, do you? :-)

    --
    Fuck Beta. Fuck Dice
  7. ghuh? by reconn · · Score: 5, Funny

    Slashdot poster.... in favor of regulation...... brain melting....

    --
    Everything that was once directly lived has receded into a representation. -debord
    1. Re:ghuh? by Sad+Loser · · Score: 5, Informative

      Australia is notoriously regulation happy (yesterday sent off $100 fine for NOT voting in the election - that's how regulated we are.)

      However we have a champion of the poor dispossessed geek in Allan Fels. The ACCC is the counterbalance to the Australian authoritarianism and big business, and actually works quite well, as it has teeth and a fearless leader.

      All credit to the ACCC for taking on a difficult and messy problem.

      --
      Humorous signatures are over-rated.
  8. Re:booo by divide+overflow · · Score: 5, Insightful

    This is just more commie market regulation.
    Everyone knows Free Markets means Freedom!
    Market regulation is bad right?


    No, market regulation is neither bad nor good...it is simply a necessity, much as police are a necessity when large numbers of individuals are involved. Like civilized society, markets need rules too. When properly formulated and enforced, regulations ensure that everyone has a level playing field.

    Regulations can be good or bad, or neither, or both simultaneously. It all depends on how well the regulations achieve their goals...and whether you agree with them.

  9. Old issue! Remember Africa? by npendleton · · Score: 5, Interesting

    Remember the slashdot story on African ISPs having to foot the connection bill? The fundamental problem is that peripheral networks foot the bill to connect to larger networks, which foot the bill to connect to themselves (via backbones) and which connect to yet larger networks.

    So why should governments regulate this? What kind of abuse is going on? If the edge players did not buy the connection, they would die.

    Large players (e.g. AOL and MCI) are the ones vulnerable to bankruptcy for spending too heavily on infrastructure, that is quickly out of date.

    Mac Refugee, paper MCSE, linux wanna be

  10. What happened to BGP? by umofomia · · Score: 5, Interesting
    There are some apparent curiosities with current interconnection arrangements. If I am connected to a smaller ISP and I send an email to my friend at one of the four larger ISPs, the larger ISP will generally charge my smaller ISP for sending the email. However, when my friend at the larger ISP sends me a return email, my smaller ISP will have to pay the larger ISP once again.
    Umm... this was the way BGP (Border Gateway Protocol: the protocol that basically routes the entire Internet, more info here) was designed to work. It's what gives ISPs incentive to cooperate yet still compete with one another. I don't see how the Australian government can do anything to change this since under BGP, there is no incentive to charge depending on which way information is flowing.

    BGP already provides some of these benefits for smaller ISPs by allowing peering relationships. Let's say there is a parent ISP A, with smaller ISPs B and C in a transit relationship to A (in other words, they pay A). If B wants to send to C, it normally has to go through A, and both B and C end up paying for it. If there is significant traffic between B and C, they may decide to set up a peering relationship, sending packets directly between one another and bypassing A. Many peering relationships are set up such that B and C don't pay each other anything, since they both end up saving money by bypassing A.

    Also, if you think about it, if A charges B for anything going from B to A and B charges A for anything going from A to B, you end up cancelling much of the money they make from one another. Granted, the larger ISP will most likely come out ahead, but it still needs to pay its bills. So it raise prices anyway in order to recoup the money that was cancelled out. In effect, the amount that the larger ISP charges will be unchanged, but there is extra work involved in keeping track of all this information. To make an analogy, does it make sense for you to charge your ISP for packets that go one way and not the other? No, you're paying them for the connection that they provide.

    Finally, how do we determine in what situations do charges apply? If an e-mail goes from A to B, it seems logical that A should pay. But if B makes a request for a web page and the web page is transferred from A to B, should A still pay? If we make different payment rules for different protocols, this will become a mess.

    In summary, I don't see how this regulation will effect anything except to make everyones lives harder.

    1. Re:What happened to BGP? by newt · · Score: 5, Informative
      BGP already provides some of these benefits for smaller ISPs by allowing peering relationships. Let's say there is a parent ISP A, with smaller ISPs B and C in a transit relationship to A (in other words, they pay A). If B wants to send to C, it normally has to go through A, and both B and C end up paying for it. If there is significant traffic between B and C, they may decide to set up a peering relationship, sending packets directly between one another and bypassing A. Many peering relationships are set up such that B and C don't pay each other anything, since they both end up saving money by bypassing A.

      The situation in Australia is that A is "Telstra", and B and C are "everyone else".

      Telstra also owns 100% of the installed base of copper lines in Australia, and about 90% of the installed base of fibre optic capacity, so if B and C decide that they want to talk to each other directly they almost always have to lease carrier services from Telstra... which has set the tarrifs so that the cost of directly linking is very similar to the cost of sending transit through Telstra in the first place.

      The monopoly sitation with respect to installed telecommunications infrastructure distorts the way the peering arrangements you have described occur. The Australian situation is similar to what you would have had in the US if AT&T were never broken up.

      For long-haul and metropolitan peering, US ISPs can obtain competitive bids from any of a number of CLECs and national carriers, or they can dig-up the sidewalks and install their own fibre. In Australia, digging up the sidewalk for laying cable is illegal without a Government-sanctioned carrier license, and there is very little in the way of competitive telecommunications infrastructure, so Telstra effectively becomes the sole provider.

      The situation is slowly changing, but it's a very fragile ecosystem at the moment. Almost all of the Telstra competitors are either in the infancy or in bankruptcy... so if you were a major ISP, would you think that peering was an economically viable long-term option?

      Finally, Telstra themselves never peer with anyone -- As far as they're concerned, every single other ISP in Australia, including the likes of Worldcom, falls into the "customer" category. Oh, hang on, there is one exception: about five years ago, the ACCC forced Telstra into peering arrangements with OzEmail and Optus (the number-2 and number-3 ISPs at the time). The terms of those arrangements remain a commercial secret, and no further peering arrangements have ever been entered by Telstra.

      - mark

      --

      -----
      I tried an internal modem, but it hurt when I walked.

  11. The current state of .au peering... by ghostrider_one · · Score: 5, Insightful
    ... isn't as bad as one might expect from the article. Quite a number of small and medium-sized ISPs peer, as do larger ISPs. The problem is that larger ISPs (ie Telstra, Optus, Connect.com etc) will only peer among themselves, and not with anyone further down the foodchain. Peering groups such as Pipe networks and ausbone have had good results getting the smaller ISPs to peer with eachother, and varying results with medium-sized ISPs, but the carte^H^H^H^H^Hclique of large-sized ISPs (ie have non-trivial amounts of International bandwidth, and large amounts of content on their network) just wont play ball, and the ACCC will have a fight on their hands if they want to make them.

    Complicating things is the fact that probably the biggest content host in Australia (no names, no pack drill) steadfastly refuses to peer. Of course, they're owned by $tier_1_ISP. If they peer, they give away the traffic. If they don't peer, they charge money for the traffic. What do you think they're going to do?