Mobility

CIPT: Using Tuangou to Reduce IP Transit Costs

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Executive Summary

A majority of ISPs (Internet Service Providers) support connectivity to the entire Internet by transiting their traffic via other providers. Although the transit prices per Mbps decline steadily, the overall transit costs of these ISPs remain high or even increase, due to the traffic growth. The discontent of the ISPs with the high transit costs has yielded notable innovations such as peering, content distribution networks, multicast, and peer-to-peer localization. While the above solutions tackle the problem by reducing the transit traffic, this paper explores a novel approach that reduces the transit costs without altering the traffic. In the proposed CIPT (Cooperative IP Transit), multiple ISPs cooperate to jointly purchase IP (Internet Protocol) transit in bulk.

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