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CIVIL SOCIETY

WORKING GROUP on FINANCING MECHANISMS

TRANSIT AGREEMENTS.

One of the main reason of the high access cost to the Internet in develloping countries, is that ISPs in those countries do have agreements with other ISPs in advanced countries that follow commercial logics that are very ill-suited to bridge the digital divide. Therefore, it is called that equitable ( or even advantageous to develloping countries as a form of a specific aid ) agreements be concluded between all ISPs, whether public or private. This is a question of governance. Since it is clear from the WGIG Peering and Interconnection draft document, that the business sector would not agree to a state-controlled regulatory framework as proposed by ICAIS, it could be recommanded the creation of a multi-stakeholder UN commission or better a UN-endorsed multi-stakeholder partnership ( states, private sector, civil society ) that could enforce a control within its members and have some moral influence on those who are not members. This MSP could write a "good practice" charter, and would issue warnings and recommandations to all concerned stakeholders in cases the agreement appears to be unequitable.

Excerpts from Alan Levin presentation about IXPs:

"For virtually all developing country ISPs, the only option for connectivity to the global Internet is a transit agreement. That is, a developing country ISP has such a small customer base that the international Tier-1 and Tier-2 providers have no business incentive to enter a shared-cost peering agreement with it. Many of MCI's criteria for no-cost peering are difficult or impossible for developing country ISPs to satisfy, e.g., a Traffic Exchange Ratio not exceeding1.5:1"

"The result (to over simplify slightly) is that developing country ISPs must pay 100% of both outbound and inbound traffic; under the terms of the transit agreement, the ISP on the other end of the international link does not share the cost of exchanged traffic" "For Africa, then, the result is a massive outflow of capital, amounting to perhaps hundreds of millions of dollars per year -- the amount paid by African ISPs to send domestic traffic over international connections. In other words, the perverse situation is that African Internet service providers -- small companies struggling to provide network services to the poorest populations in the world --are effectively subsidizing the largest, richest ISPs in Europe and the United States."

Now,another issue, besides getting more equitable transit or peering agreements is to develop Internet Exchange Points
Alan Levin asked this question for the GAC : Since there is a disincentive for some ISPs to peer, should IXPs be regulated by an Internet governance institution ?




















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