Networking

A Value-Based Framework for Internet Peering Agreements

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Executive Summary

Internet Service Providers (ISPs) use complex peering policies, stipulating various rules for peering with other networks. Peering strategy is often considered a "Black art" rather than science, and the outcome of a peering negotiation can depend on factors that are neither technical nor economic. Consequently, ISPs are required to make difficult decisions about the set of networks they should peer with, and the price they should demand/offer to ensure a stable peering link. The authors propose a quantitative framework for settlement-free and paid-peering links, based on the "Value" of a peering link, i.e., the benefit that network sees from that link.

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