nanog mailing list archives

Re: UUNET Pulling Peering Agreements & replacing them with charging under non-disclosure?


From: Karl Denninger <karl () Mcs Net>
Date: Fri, 2 May 1997 12:07:25 -0500

On Fri, May 02, 1997 at 09:56:38AM -0700, Wayne Bouchard wrote:
The argument about national backbones costing money is a red herring.  OF
COURSE they cost money.  But they open business markets to you that are
otherwise closed - being able to sell in multiple cities without the customer
having to backhaul on their own, VPNs across geographical areas, etc.  If you
don't like the price:performance balance of that equation, then you shouldn't
build one.

Well, this goes into "cutting off peers means your customers can't
access mine." There's two problems with this: First, the key point is
YOU can't access THEIRS without buying transit. Most ISPs aren't gonna
permit this loss of connectivity and will buy transit.. it just won't
be from the company that pulls the plug. Lets also note who its gonna
hurt more.. the company with fewer customer sites that need to get
accessed. The complaint ratio between the two groups are gonna be
wholly lopsided. The smaller ISP will receive far more complaints than
the larger one.

That sounds like extortion and a violation of the Sherman Act.  Someone 
ought to look into this.  I note that violations of the Sherman Act are
criminal as well as civil matters, and if done in collusion (and lock-step
changes in policy by "competitors" are one of the tests for this) you can
even raise a RICO charge.

In my view, whats being proposed has more or less been in the works
for quite a while. Because of the customer's demands for 100%
connectivity, there's not a whole lot to stand in the way. And as long
as MFS/UUNET/WorldCom run the two biggest exchange points (and are
thus getting paid exorbatant amounce for connectivity INTO that NAP --
thus making it so you really pay *3* times for a packet to cross the
network -- along with various customer circuits into that NAP because
of the "near exit" -- making it actually 4 times if you consider loop
charges), there's no reason it can't continue. 

There's a fix for this.  Set up another peering point.

--
-- 
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