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Interconnection: Costs, Complexity, Policies
Gaurab Raj [email protected]
Why Peering in Asia Sucks !
Disclaimer
• Everything in these slides is my own opinion.
Interconnection Markets
• Internet interconnections are concentrated in few hubs around the world– US West Coast (Silicon Valley, Los Angeles)– US East coast (New York, Ashburn)– London, Amsterdam, Frankfurt, Stockholm – Singapore, Hong Kong, Tokyo
Interconnection Markets
• It takes time and lots of efforts to create a viable interconnect market. – Singapore is a very recent entrant into this ‘hub’
status. • It doesn’t always work at scale for everyone– Local relevance may sometimes be more value • Moscow, Miami, Prague, Budapest
• Open and easy access are the key drivers– Why are Rio / Mumbai / Dubai not real hubs yet?
Let’s Dig Deeper into the Asian Hubs
• Singapore– A hub for a lot of other things – transport, banking, logistics due to ease
of doing business– Equinix SG1 IX (287 networks according to peeringdb)
• Hong Kong– Similar to Singapore, traditional hub for logistics – Voice Interconnect hub, so carrier density – HKIX (297 networks according to peeringdb)
• Tokyo– The traditional jumping point to the ‘Internet’ in the US– Japan is one of the largest Internet markets (users, content, everything)– JPIX (184 ), JPNAP (150)
Greg’s Cable Map : www.cablemap.info
But
Layer 1 infrastructure doesn’t translate into Layer 3 Interconnect
Because of
Cost Complexity
Policies
Cost of Backhaul – NA/Europe
• Intra Europe 10G terrestrial wave Costs– 800-1200 USD for 10G between major points – 1000-1500 USD for extended locations– Bucharest to London is ~2500KMs, costs below
2500 USD, or roughly 0.0001/mbps-km. • Intra-US 10G wave costs are similar (actually a
bit higher)– US distances are longer – Large expanse of empty lands
Cost of Backhaul in APAC
• Intra Asia is mostly Sub sea, costs are traditionally higher, but going down drastically– Intra Asian Hub prices range from 12-20K/Month,
depending on locations– Cost of local loop are a key driver, but with POP to
POP design changes, the local loop is not a big consideration for many providers. • Where it does, the cost of CLS to POP backhaul is a big
problem
Cost of terrestrial Backhaul
– North Asia • Japan: Tokyo – Osaka : 10G ~-5-8K/month • Korea: Seoul – Busan : 10G ~ 12K/month
– South Asia • India : Delhi-Mumbai: 10G ~50-60K a month• Bangladesh : Dhaka-Cox’ 10G – 25K/month • Nepal : Kathmandu-Pokhara 10G: - 10K/month
– South East Asia• Malaysia: Kualalumpur – Johor: 30K/month• Thailand: Bangkok – Phuket: 10G ~25-30K/month*Philippines, Indonesia are mostly subsea. Different costs
Asian Transport Pricing
10 Gbps Wavelength Price Multiple over London-New York
Let’s look deeper
• CLS to POP costs– Tuas/ Changi – SG1 : 5-8K/month– Chikura/Maryuama - Otemachi : 5-8K/month– Hongkong : 4K/month premium for anywhere
outside Mega-I. – Korea: it cost more for local backhaul from the CLS to POP, then
the wet segment from Tokyo
– India : Regulated Access charge ($4/mbps ?)
So,
• It is EXPENSIVE to get to peering locations– Transit may be cheaper – Going to LA is likely cheaper
• Operators keep costs artificially high– In Metro Areas – Offer IP Transit over the same transport, which is cheaper
(vs. buying the transport). • Complexity keeps the costs high– SDH – Weak Fiber Infrastructure (i.e, needing 3 routes to build full
redundancy).
Complexity & costs are related
• In Tokyo metro area, metro 10G between certain Datacenters are available as low as $350. – Same transport from other providers range upto 5K/month
• Aggregation for other services are not optimal for data. – One major Indian mobile carrier aggregates into 3 locations,
and those are not close to data gateways. – Network designed based around regulatory boundaries,
and voice optimization• Just easier to buy transit in 3 locations then try to aggregate and
build peering.
• It adds the costs, makes engineering changes difficult.
It’s not just the cost or complexity
• Most Markets are closed except for HK– HKIX had an early start, and is popular even with the
high local transport cost• (imagine HKIX without transport cost.. without M-I)..
– But then you have Dark Fiber in HK being limited to N-Waves
• Domestic Peering fabric are closed user groups or non existent – Korea, Japan, Vietnam, India have closed environment– In most other it’s likely non-existent
Can it be improved
• Singapore has nearly done it, so yes.. Can be done
• Things may move faster in JP, HK, SG then in other locations.
• But something more disruptive needed– Dark Fiber availability or metro waves availability – Metro area IXPs ? (in SG and HK)
Acknowledgement
• Telegeography• Donald Clark• Raphael Ho