Why Peering Ratios?


Argument #4 - “I want revenue for carrying your packets”

This argument is business rational and comes in many forms:

•“You look like a sales prospect – you should buy transit,” and

• “If I peer with you, then you will need what I have less.” Hidden assumption here: direct access to my customers is a major selling feature.”

•“Establishing Peering Traffic Ratios allows me to systematically deny peering to my Content Customer”

Counter-Argument #1 - All peering and transit relationships are negotiable business relationships, but peering traffic ratios are probably not the right metric for determining the terms of the relationship.

Counter-Argument #2 - As discussed above, the cost of distribution is the same regardless of whether content or access heavy. A more appropriate negotiating discussion surrounds the incremental value provided to the content or access customers by the network in question.

Counter-Argument #3 - And remember, you will have to carry this traffic by some means (transit or peering) to get it to your customers. So when negotiating, you are just negotiating for a different delivery mechanism to your customers – this may not command a high price.

Argument #5The_Folly_of_Peering_Ratios_5.html