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Internet Society

Boosting Local Content and the Internet Economy

RONOG 29 October 2014, Bucharest

Maarit Palovirta, European Regional Affairs Manager

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Our MissionTo promote the open development, evolution, and use of the Internet for the benefit of all people throughout the world.

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Internet Access Value Chain

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IXPs around the World

Source: TeleGeography World IX Map, http://www.internetexchangemap.com/

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Local Content and Internet Development

Source: OECD/ISOC/UNESCO (2013): The Relationship between Local Content, Internet Development and Access Prices

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Role of Internet Exchange Points (IXPs)

A primary role of an IXP is to:

•Keep local Internet traffic within local infrastructure and to reduce costs associated with traffic exchange between networks.

•Improve the quality of Internet services and drive demand by reducing delay and improving end-user experience.

•Create a convenient hub for attracting key Internet infrastructures within countries e.g. data hosting facilities.

•Act as a catalyst for overall Internet development including commercial, governmental and academic stakeholders.

Internet Exchange Points (IXPs) are now well recognised as a vital part of the Internet ecosystem and

essential for facilitating a robust domestic ICT sector*.

* See for example, the OECD’s recent report on Internet Traffic Exchange:http://www.oecd-ilibrary.org/science-and-technology/internet-trafficexchange_5k918gpt130q-en

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Geography of Top Level Domain Names

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Attracting Regional & International TrafficAverage distance of participants from IXPs within each economy

If one builds a local IXP, no matter how remote, ISPs from other regions will build infrastructure to reach it;

Exchanges can become very successful even if they do not attract a substantial portion of intercontinental participants.

Source: Packet Clearing House

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Leveling up Your IXP

Context:

•Growth of Internet traffic, especially video traffic.

•End-user demand for better quality broadband connections.

•Operators developing new sources of revenue to complement declining fixed-line rentals etc.

•EU/ national policy targets and subsidies:

Coverage: Next Generation Access (>30 Mbps) for all by 2020;

Uptake: 50% of households having 100 Mbps subscriptions (or higher)

Internet traffic projections 2013-18 in CEE*:

Internet x2,9 or GACR 24%

Internet video x4 or GACR 33%

Devices from 1bn to 1,6bn

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*Source: Cisco Virtual Networking Index (VNI) 2014

Increasing capacity and outreach through additional IXP nodes or domestic backbone extension?

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Get InvolvedThere are so many ways to support the Internet. Explore how you can make an impact.

Become a Member

Join a Chapter

Attend an Event

This is your Internet.Join it!

www.internetsociety.org

For any questions, please contact me at: palovirta@isoc.org