On Dec 4, 2010, at 5:28 PM, Bill Stewart wrote:
> On Fri, Dec 3, 2010 at 9:35 AM, Leo Bicknell <bickn...@ufp.org> wrote:

>> - Ratio needs to be dropped from all peering policies.  It made sense
>>  back when the traffic was two people e-mailing each other.  It was
>>  a measure of "equal value".  However the net has evolved.  In the
>>  face of streaming audio and video, or rich multimedia web sites
>>  Content->User will always be wildly out of ratio.  It has moved from
>>  a useful measure, to an excuse to make Content pay in all
>>  circumstances.
> 
> I think that's the key point here - ratios make sense when similar
> types of carriers are peering with each other, whether that's
> traditional Tier 1s or small carriers or whatever; they don't make
> sense when an eyeball network is connecting to a content-provider
> network.

Ratios either make sense, or they don't.  I don't see how "type of network" 
fits into it.  If you are a restaurant, you do not decide whether or not to 
charge customer for food based on whether or not they work at another 
restaurant.  If your are eyeball and content wants to peer with you, make a 
decision based on your costs and profits.

Ratios are a proxy for real cost / benefit.  As Leo mentioned (and Bill 
snipped), if $LARGE_CONTENT has a single location and $LARGE_EYEBALL has to 
carry it all over the country, the ratio "matters" supposedly because large 
eyeball has to carry those bits everywhere.  The implicit statement here is 
that large content gives a rats ass about large eyeball's costs.

Repeat after me: I DO NOT CARE ABOUT YOUR COSTS.  What's more, you don't care 
about mine.  If cisco says "well, I know the Juniper has the same features and 
is cheaper, but my costs are higher!", do you then buy the cisco?  HELL NO.  
The other person's costs are irrelevant to your decision.

If large eyeball finds it cheaper to pay $LARGE_TRANSIT for those bits, perhaps 
because eyeball can make transit carry the bits to a local hub, then eyeball 
should not peer.  If eyeball would actually pay more to transit than carrying 
the bits from content's single location, yet still does not peer, then 
eyeball's peering manager should be fired.  You cost my company money to boost 
your ego, you're out on your ass.

Of course, I am glossing over the idea that eyeball could pay transit a short 
while to see if he can get a concession out of content.  Maybe eyeball assumes 
content has transit costs as well, so eyeball thinks he can force content to 
pay something.  This is probably where the idea of "similar value" popped into 
the peering lexicon.  But that is standard business negotiations, and honestly 
has nothing to do with similar value.  In reality, content & eyeball have no 
idea of the other's true costs (probably not even the $/Mbps they pay for 
transit), so the idea of coming to a "similar value" agreement is ludicrous.

Make the decisions that are best for your company.  Not best for your ego.

Remember people, the Internet is a business.  Peering is a business tool, not 
some playground where teacher is enforcing some notion of fairness.

-- 
TTFN,
patrick

P.S. I'm ignoring the idea of "if we give it away free to one, everyone will 
want it free".  Trust me, they all want it "free" anyway.  And saying "you gave 
it to him for free!" sounds more like that schoolyard than a business 
negotiation.  Besides, if you come to me and say "this other network got $FOO", 
I will tell you I couldn't possibly talk about that under NDA, their deal is 
irrelevant to our deal, and each deal is far too unique to be compared.  Then 
bitch at the other network for breaking our NDA.  Breaking NDAs is bad, 
mmmmm-KAY?


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