Peering Group Of Eight Plans New Company
August 17, 1998
Inter@ctive Week via NewsEdge Corporation : A group of eight Internet access providers plans soon to form a private network exchange company to win connection rights with larger backbone players.
At a recent West Coast founders meeting, Electric Lightwave Inc., Epoch Networks Inc., E.spire Communications Inc., Exodus Communications Inc., Netcom On-Line Communication Services Inc., Savvis Communications Corp., Williams Communications Group and Winstar GoodNet agreed to pool $20 million to start a corporation dedicated to connecting the members at nine peering points around the U.S.
"There is a real crisis we need to solve in the backbone," said Mike Gaddis, chief technical officer of Savvis (www.savvis.net).
The crux of the problem is high packet loss from poor-quality interconnections between networks at the public exchange points. Also, smaller networks are unable to win free-traffic exchange, or peering, with large players such as MCI Communications Corp., Sprint Corp. and UUnet Technologies Inc. because they don't pump enough traffic to qualify as equals.
The group of eight has agreed to peer privately among themselves -- with some very small networks paying for transit of data -- in order to guarantee clean handoffs. The goal is zero packet loss and, if attained, would open the door for service-level guarantees over multiple networks. At present, access providers can guarantee only the bits moving over their own pipes.
"It will mean better service quality to the end user," said E.spire Vice President of Internet Product Management Anurag Lal. "We're definitely going to stay [in the group]."
The details of the new company, including its name, have not been finalized. What has been agreed upon is that the corporation will be responsible for hiring the staff and managing the nine peering points independently.
Shared lines will run over Asynchronous Transfer Mode protocol. Dedicated peering connections will be protocol-independent.
"The company will not compete with its members. It will only sell exchange services," said Gaddis, who added no member will be allowed to own more than 20 percent of the organization.
The group's strategy is to entice UUnet (www.uu.net) into the company because it has critical mass for peering and better connections than the rest of the Net. UUnet Chief Executive Officer John Sidgmore is aware of the effort and is even giving some advice. "He's given us some great ideas. Sidgmore is very interested in an equitable and fair solution to the backbone peering problem, " Gaddis said.
Peering Players
E.spire Communications Inc.
Electric Lightwave Inc.
Epoch Networks Inc.
Exodus Communications Inc.
Netcom On-Line Communication Services Inc.
Savvis Communications Corp.
Williams Communications Group
WinStar GoodNet
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