TV SIMS 050316 Scribd

Embed Size (px)

Citation preview

  • 8/3/2019 TV SIMS 050316 Scribd

    1/55

    The Wealth of Networks:An Old Formula for Understanding

    the New Global Information Economy

    Version 1.0

    March 16, 2005

    Tom Vest

    Research Program Manager

    Packet Clearing House

    http://www.pch.net

    [email protected]

  • 8/3/2019 TV SIMS 050316 Scribd

    2/55

    Roadmap

    1. NormativeWhats important? What should we pay attention to?

    2. DeductiveConnecting priorities to observable phenomena

    3. EmpiricalData collection, interpretation, caveats!

    4. SpeculativeHow are things changing? Where are we headed?

    5. PrescriptiveWhat can we / should we do about it?

  • 8/3/2019 TV SIMS 050316 Scribd

    3/55

    Roadmap

    1. NormativeWhats important?

    What should we pay attention to?

    2. DeductiveConnecting priorities toobservable phenomena

    3. EmpiricalData collection,interpretation, caveats

    4. SpeculativeWhat makes the Internet grow?How are things changing?Where are we headed?

    5. PrescriptiveWhat can we / shouldwe do about it?

  • 8/3/2019 TV SIMS 050316 Scribd

    4/55

    Roadmap

    1. NormativeWhats important?

    What should we pay attention to?

    2. DeductiveConnecting priorities toobservable phenomena

    3. EmpiricalData collection,interpretation, caveats

    4. SpeculativeWhat makes the Internet grow?How are things changing?Where are we headed?

    5. PrescriptiveWhat can we / shouldwe do about it?

  • 8/3/2019 TV SIMS 050316 Scribd

    5/55

    What (who) is the Internet good for?! Questions of sovereignty and national interests

    ! Maximizing net international settlement revenues collectedby the national operator/regulator/government

    ! Voice telecom - FCC Benchmark Settlements, 1996-1997

    ! Internet - ICAIS (International Charging Arrangements for InternetServices), 1997-present

    ! Minimizing national dependence on / vulnerability toforeign Internet exposure, control

    ! National-level content management (China, Saudi Arabia, etc.),1994-present

    ! WSIS - Internationalization of core technical management functions,e.g., root DNS zone management, IP address allocation

    ! Insusceptible to empirical argument, except when related

    to

  • 8/3/2019 TV SIMS 050316 Scribd

    6/55

    What (who) is the Internet good for?

    ! Questions of economic distribution, development,outcomes -- Digital Divide issues -- e.g. how many

    ! Users(U1):access, subscribers, irregular users eyeballs! Uses(U2):information, online services, e-(stuff) content

    ! U1 +U2= Internet resources, Internet capital

    ! Usage(U3):qualitative dimension, manifested by time online

    ! National and international policy advocacy often justifiedas instrumental, toward these ends

    ! Global scope, empirical, time-series answers are available,at least from 1997-present

  • 8/3/2019 TV SIMS 050316 Scribd

    7/55

    Roadmap

    1. NormativeWhats important?

    What should we pay attention to?

    2. DeductiveConnecting priorities toobservable phenomena

    3. EmpiricalData collection,interpretation, caveats

    4. SpeculativeWhat makes the Internet grow?How are things changing?Where are we headed?

    5. PrescriptiveWhat can we / shouldwe do about it?

  • 8/3/2019 TV SIMS 050316 Scribd

    8/55

    Where to find (U1, U2, U3) on the Internet?

    ! Eyeballs and content -- interchangeable terms forthe sources and destinations of Internet traffic, i.e., IProutes, routedIP addresses.

    ! Eyeballsmore closelyassociated with

    ! Inbound network traffic

    ! Dynamic IP addressing

    ! Absolute quantity of IP driven by peak simultaneous usage, whichvaries as users, usage (Internet value) changes

  • 8/3/2019 TV SIMS 050316 Scribd

    9/55

    Where to find (U1, U2, U3) on the Internet?

    ! Eyeballs and content -- interchangeable terms forthe sources and destinations of Internet traffic, i.e., IProutes, routedIP addresses.

    ! Contentmore closelyassociated with

    ! Outbound traffic

    ! Static IP addressing

    ! Absolute quantity of IP primarily driven by diversity of contentsources, to a lesser degree by peak simultaneous demandforeach source, which varies with popularity, content format, etc.

  • 8/3/2019 TV SIMS 050316 Scribd

    10/55

    Where to find (Internet resources) ?

    + + eScaling factors

    Policy era-specific factors

    Slack / inefficiency

    IP addresses injectedinto the routing tableby an individual network

    =

  • 8/3/2019 TV SIMS 050316 Scribd

    11/55

    Where to count (Internet resources) ?

    e

    e

    e

    Each router connectedto the Internetmaintains a local viewof paths leading to

    every Internet resource

    Each of those viewsmay vary substantiallyin almost every

    possible way -- exceptone:

    All will share a commonview of the network oforigination for each

    Internet resource*

    ?

    ?

    ?

    ?

    ROUTER

  • 8/3/2019 TV SIMS 050316 Scribd

    12/55

    1,026,757,820

    1,204,350,873

    1,334,408,540

    1,305,962,352

    1,057,646,916

    1,395,036,652

    1,058,866,124

    1,000,000,000

    1,100,000,000

    1,200,000,000

    1,300,000,000

    1,400,000,000

    1,500,000,000

    1,600,000,000

    1997 1998 1999 2000 2001 2002 2003

    0

    1,000

    2,000

    3,000

    4,000

    5,000

    6,000

    7,000

    8,000

    9,000

    10,000

    11,000

    12,000

    13,000

    14,000

    15,000

    16,000

    OrigIP

    IP/ASN (10k)

    Global Accumulation of Internet ResourcesRouted IP addresses

  • 8/3/2019 TV SIMS 050316 Scribd

    13/55

    Network engineering/management &Internet resources! Consistent with the logic of RIR IP allocation policies

    ! Approved application for new IP == officially validated forecast of expectedequivalent growth in U1,U2, and/orU3

    ! Host Density (HD) ratio research (e.g., RFCs 1715, 3194;ARIN 2004-02)

    ! Operator-level acknowledgement that IP address utilization has apredictable, scale-sensitive relationship to U1,U2, andU3

    ! Also provides rule of thumb for estimating size of interiornetworkelements

    ! Linkage of eyeballs and content with IP addressesconsidered by some a major Internet design flaw!

    ! Semantic overloading of IP addresses, each of which simultaneouslyrepresents:

    ! A discrete element (interface, process, etc.) within a network topology

    ! A unique source/destination for TCP/IP traffic

  • 8/3/2019 TV SIMS 050316 Scribd

    14/55

    IP addresses as Internet Resourceswhos been keeping account?

    ! University of Oregon Route Views Project

    !Centralized collection of global routing table snapshots from multiplevantage points, 1997-present

    ! Packet Clearing House

    ! Local capture of more specific routing table views from 30+ InternetExchange Points around the world

    ! Tony Bates, Philip Smith, Geoff Huston, CAIDA

    ! Focus on scarce protocol resource husbandry, efficiency of routeaggregation, bogon detection/remediation

    ! CAIDA IPv4 BGP Geopolitical Analysis

    ! Single snapshot of international distribution of Internet resources,June 11, 2001

  • 8/3/2019 TV SIMS 050316 Scribd

    15/55

    Roadmap

    1. NormativeWhats important?

    What should we pay attention to?

    2. DeductiveConnecting priorities toobservable phenomena

    3. EmpiricalData collection,interpretation, caveats!

    4. SpeculativeWhat makes the Internet grow?How are things changing?Where are we headed?

    5. PrescriptiveWhat can we / shouldwe do about it?

  • 8/3/2019 TV SIMS 050316 Scribd

    16/55

    IP addresses == Internet resourcesso what?

    ! Each IP address is uniquely associatedwith a specificadministrative network (Autonomous System or AS), the

    one which injectsit into the Internet! Enterprise-level trends, comparisons

    ! Injection of new ASes, represented by unique AS Numbers(ASNs)

    ! Emergence of new enterprises -> changing market structure, marketconcentration

    ! Going one step further, individual ISPs (represented by 1+ASNs) can be mapped onto national jurisdictions viawhois; measurement possible at the national level

    ! National-level trends, comparisons

  • 8/3/2019 TV SIMS 050316 Scribd

    17/55

    Where are (Internet resources)produced?

    e

    e

    e

    ?

    ?

    ?

    ?

    Router

    Autonomous Systemwith the unique number x

    ASx

    Autonomous System(AS)Autonomous System(AS)

    Hardware and networkHardware and network

    elements integrated intoelements integrated intoa unique logical groupinga unique logical groupingcontrolled by a specificcontrolled by a specificadministrative authorityadministrative authority

    Logically distinct evenLogically distinct even

    when physicallywhen physicallyoverlapping;overlapping; spatialspatialintersection does notintersection does notguarantee logicalguarantee logicalinterconnectioninterconnection

  • 8/3/2019 TV SIMS 050316 Scribd

    18/55

    OrigIP

    1,026,757,820

    1,204,350,873

    1,334,408,540

    1,305,962,352

    1,058,866,124

    1,395,036,652

    1,057,646,916

    1,000,000,000

    1,100,000,000

    1,200,000,000

    1,300,000,000

    1,400,000,000

    1,500,000,000

    1,600,000,000

    1997 1998 1999 2000 2001 2002 2003

    OrigIP

    Distribution of Internet resource production:Global market structure

    Routed IP addresses

  • 8/3/2019 TV SIMS 050316 Scribd

    19/55

    1,026,757,820

    1,204,350,873

    1,334,408,540

    1,305,962,352

    1,058,866,124

    1,395,036,652

    1,057,646,916

    2,958

    4,168

    6,016

    8,972

    11,966

    13,999

    16,105

    1,000,000,000

    1,100,000,000

    1,200,000,000

    1,300,000,000

    1,400,000,000

    1,500,000,000

    1,600,000,000

    1997 1998 1999 2000 2001 2002 2003

    0

    1,000

    2,000

    3,000

    4,000

    5,000

    6,000

    7,000

    8,000

    9,000

    10,000

    11,000

    12,000

    13,000

    14,000

    15,000

    16,000

    OrigIP

    OrigASNsRouted AS Numbers (ASNs)Routed IP addresses

    Distribution of Internet resource production:Global market structure

  • 8/3/2019 TV SIMS 050316 Scribd

    20/55

    1,026,757,820

    1,204,350,873

    1,334,408,540

    1,305,962,352

    1,058,866,124

    1,395,036,652

    1,057,646,916

    3,471

    2,958

    4,168

    6,016

    8,972

    11,966

    13,999

    16,105

    1,760

    2,538

    1,3421,115 933 866

    1,000,000,000

    1,100,000,000

    1,200,000,000

    1,300,000,000

    1,400,000,000

    1,500,000,000

    1,600,000,000

    1997 1998 1999 2000 2001 2002 2003

    0

    1,000

    2,000

    3,000

    4,000

    5,000

    6,000

    7,000

    8,000

    9,000

    10,000

    11,000

    12,000

    13,000

    14,000

    15,000

    16,000

    OrigIP

    IP/ASN (10k)

    OrigASNs

    Increasingdecentralization,specialization

    Distribution of Internet resource production:Global market structure

    Routed AS Numbers (ASNs)

    Routed IP addresses

    Global average, IP/ASN (000)

  • 8/3/2019 TV SIMS 050316 Scribd

    21/55

    1,026,757,820

    1,204,350,873

    1,334,408,540

    1,305,962,352

    1,057,646,916

    1,395,036,652

    1,058,866,124

    3,471

    2,958

    4,168

    6,016

    8,972

    11,966

    13,999

    16,105

    8669331,115

    1,342

    2,538

    1,760

    1,000,000,000

    1,100,000,000

    1,200,000,000

    1,300,000,000

    1,400,000,000

    1,500,000,000

    1,600,000,000

    1997 1998 1999 2000 2001 2002 2003

    0

    1,000

    2,000

    3,000

    4,000

    5,000

    6,000

    7,000

    8,000

    9,000

    10,000

    11,000

    12,000

    13,000

    14,000

    15,000

    16,000OrigIP

    IP/ASN (10k)

    OrigASNs

    IP/ASN, US (10k)

    IP/ASN, CN (10k)

    but not everywhere, uniformly

    Increasingdecentralization,specialization

    Distribution of Internet resource production:Divergingnational market structuresRouted AS Numbers (ASNs)

    Routed IP addresses

    Global average, IP/ASN (000)

    Average, USAverage, China

  • 8/3/2019 TV SIMS 050316 Scribd

    22/55

    Distribution of Internet resource accumulation

    2,5002,4302,4842,163

    1,8221,9031,934

    8,503

    8,0078,370

    7,833

    7,1747,0617,175

    0

    2,000

    4,000

    6,000

    8,000

    10,000

    12,000

    14,000

    16,000

    1997 1998 1999 2000 2001 2002 2003

    Singapore

    India

    South Africa

    Hongkong

    Brazil

    France

    Korea

    Australia

    United

    KingdomChina

    Germany

    Japan

    United States

    Rest of the

    world

    10,267

    10,576

    10,588

    12,043

    13,34413,059

    13,950Routed IP addresses (000)

  • 8/3/2019 TV SIMS 050316 Scribd

    23/55

    166265

    276290

    151

    21881

    124332

    163142

    17595

    115

    550496

    1,195832

    328

    296

    326

    189

    170220

    126

    566

    1,328

    0

    500

    1,000

    1,500

    2,000

    2,500

    3,000

    3,500

    4,000

    1998 1999 2000 2001 2002 2003

    United States

    Rest of the world

    Singapore

    India

    South Africa

    Hongkong

    Brazil

    France

    Korea

    Australia

    United Kingdom

    China

    Germany

    Japan

    Distribution of Internet resource productionsince 1998

    308 321

    1,776

    3,076

    2,792

    3,682New routed IP addresses (000)

  • 8/3/2019 TV SIMS 050316 Scribd

    24/55

    IP addresses == Internet resourcesso why focus on ASNs?

    ! ASN-level Whois is moreaccurate

    ! Based on original IP allocation applications - much more complete andsubstantially more accurate that assignment-related (customerdelegation) whois

    ! Susceptible to continuing improvement - existing and proposedmechanisms for ongoing correction

    ! Public disclosure - no network operator-level level privacy expectation toimpede collection, publication

  • 8/3/2019 TV SIMS 050316 Scribd

    25/55

    IP addresses == Internet resourcesso why focus on ASNs?

    ! ASNs define the operational ontology of the Internet today

    ! Tremendous diversity in internal structures, protocols, resources, policies(RFC 827) -- but each interacting with all others exclusively through acommon protocol (BGP4) with relativelylimited/stable features

    ! Not unlike sovereign nation states: absolute authority within -- even ifless than absolute enforcement power -- plus anarchyin external affairs

    ! Autonomous systems all functionally equivalent, but some moreequivalent than others

  • 8/3/2019 TV SIMS 050316 Scribd

    26/55

    IP addresses == Internet resourcesso why focus on ASNs?

    ! ASNs define the commercial ontology of the Internet today

    ! Individual and enterprise customer Internet resources generate IP traffic-costs and benefits for their network-operating network providers

    ! Compensated and settlement-free interconnection relationships (i.e.,peeringand IP transit) are relationships between Autonomous Systems

    ! Caveat: a few large ISPs (and a few national regulators) administer manyASNs as part of unified Autonomous Routing Domains

    ! Internetwork strategy, competition == struggle to secureinternal resources, customers and external relationshipsto min/max traffic costs/benefits

    ! If IP resources == Internet production, AutonomousSystems are the producers

  • 8/3/2019 TV SIMS 050316 Scribd

    27/55

    Distribution of Internet resource production:National market diversificationWorld

    United States

    Germany

    United Kingdom

    Australia

    France

    Japan

    Korea

    Hong Kong

    Brazil

    China

    India

    Singapore

    South Africa

    0

    100

    200

    300

    400

    500

    600

    1997 1998 1999 2000 2001 2002 2003

    1,500

    3,500

    5,500

    7,500

    9,500

    1,500

    3,500

    5,500

    7,500

    1997 1998 1999 2000 2001 2002 20031,500

    18,500

    1,528

    2,9587,607

    16,105

    ASNs by country of administration

  • 8/3/2019 TV SIMS 050316 Scribd

    28/55

    0

    100

    200

    300

    400

    500

    600

    1997 1998 1999 2000 2001 2002 2003

    Distribution of Internet resource production:National market concentration

    China

    Japan

    Korea

    South Africa

    Australia

    United States

    Germany

    Brazil

    World Average

    United Kingdom

    France

    India

    Singapore

    Hong Kong

    National average IP/ASN (000)

  • 8/3/2019 TV SIMS 050316 Scribd

    29/55

    IP addresses == Internet resourcesso why focus on ASNs?

    ! ASNs represent a natural point of intersection betweenunderlying telecommunications infrastructure (Layer1,2)

    and the Internets logical layer (Layer3)! ASNs enable integration of diverse, possibly geographically distributed

    infrastructure segments into a single logical system

    ! Key qualification for securing use of an ASN is need and meanstoconnect to at least two other logical networksusually implies the use ofpoint-to-point telecommunications infrastructure (e.g., circuits, etc.)

    ! Focusing on this point of intersection between telecomand Internet provides foundation for dialogue betweenBellheads and Netheads, and an empirical basis fortailoring Digital Divide corrective policies

  • 8/3/2019 TV SIMS 050316 Scribd

    30/55

    Packets abhor a vacuum!

    e

    e

    e

    Like everycommunications system,Internet traffic requires a

    physical transmissionmedium

    Today, this medium isalmost exclusivelyterrestrial -- copper,coax, and fiber -- inalmost every economy

  • 8/3/2019 TV SIMS 050316 Scribd

    31/55

    Linking logical Internet networks tophysical telecom infrastructure

    e

    e

    e

    Copper & coaxial cableUsed in territorial accessnetworks reaching most/all homes

    and businesses in developedcountries

    Optical multiplexing efficiencygains since 1990: 103% maybe

    More than 2,000,000,000 milesdeployed in the US alone!

    Optical FiberUsed extensively for carrying highvolume traffic over long distances

    n00,000,000 miles deployed globally

    (much in 16 to 96-strand cables)Optical multiplexing efficiency gainssince 1990: 106% and rising

  • 8/3/2019 TV SIMS 050316 Scribd

    32/55

    1

    10

    100

    1,000

    10,000

    1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49

    Does Infrastructure Determine IP Resources?

    China

    UnitedStates

    Japan

    Germany

    India

    Brazil

    Russia

    UnitedKingdom

    France

    Italy

    Korea

    Canada

    Turkey

    Spain

    Mexico

    Iran

    Taiwan,

    China

    Poland

    Ukraine

    Australia

    Netherlands

    Colombia

    Egypt

    Indonesia

    Argentina

    Thailand

    Sweden

    Switzerland

    Greece

    Belgium

    SouthAfrica

    Malaysia

    VietNam

    Romania

    Portugal

    Pakistan

    Austria

    Hongkong

    C

    zechRepublic

    Denmark

    Hungary

    SaudiArabia

    Philippines

    Norway

    Chile

    Belarus

    Israel

    Bulgaria

    Venezuela

    Yugoslavia

    Main Lines

    Deployed (m)

    Routed IP

    Addresses (100k)By originating AS

    1: 1 Ratio

  • 8/3/2019 TV SIMS 050316 Scribd

    33/55

    1

    10

    100

    1,000

    10,000

    1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49

    Provider Diversity and IP Resources:Natl Telecom Infrastructure vs. Internet Production

    China

    UnitedStates

    Japan

    Germany

    India

    Brazil

    Russia

    UnitedKingdom

    France

    Italy

    Korea

    Canada

    Turkey

    Spain

    Mexico

    Iran

    Taiwan,

    China

    Poland

    Ukraine

    Australia

    Netherlands

    Colombia

    Egypt

    Indonesia

    Argentina

    Thailand

    Sweden

    Switzerland

    Greece

    Belgium

    SouthAfrica

    Malaysia

    VietNam

    Romania

    Portugal

    Pakistan

    Austria

    Hongkong

    C

    zechRepublic

    Denmark

    Hungary

    SaudiArabia

    Philippines

    Norway

    Chile

    Belarus

    Israel

    Bulgaria

    Venezuela

    Yugoslavia

    Network

    OperatorsOriginating ASNs

    Main Lines

    Deployed (m)

    Routed IP

    Addresses (100k)By originating AS

    1: 1 Ratio

  • 8/3/2019 TV SIMS 050316 Scribd

    34/55

    Provider Diversity and IP Resources:Number of Routed IP Addresses per DS0 Main Line

    0.01

    0.10

    1.00

    0.00

    1 2 3 4 5 6 7

    2003200220012000199919981997

    0.1

    1.0

    10

    4.68

    3.24

    1.79

    0.9-1.4

    0.45

    0.24

    0.14

    0.07

    4.16

    1.90

    1.50

    .03-0.6

    0.08

    0.06

    0.02

    1.37

    United States

    Australia

    Hong Kong

    World Average

    South Africa

    Singapore

    Germany

    Japan

    United Kingdom

    Korea

    France

    Brazil

    China

    India

  • 8/3/2019 TV SIMS 050316 Scribd

    35/55

    Linking logical Internet networks tophysical telecom infrastructure

    e

    e

    e

    National and internationalNational and internationalregulatory authorities haveregulatory authorities havebeen counting physicalbeen counting physicalcommunications systems forcommunications systems fora long time, and publishinga long time, and publishingthe resultsthe resultsinformation aboutinformation about(and by whom) infrastructure(and by whom) infrastructurecan be used for Internetcan be used for Internetservice delivery is much moreservice delivery is much moreobscureobscure

    Unlike these nationalUnlike these nationaltelecommunications systems,telecommunications systems,today the built Internet is nottoday the built Internet is notexplicitly bounded by nationalexplicitly bounded by nationaljurisdiction, there are only ajurisdiction, there are only afew different real-worldfew different real-world

    pairingspairings

  • 8/3/2019 TV SIMS 050316 Scribd

    36/55

    Domestic operators onlyNo foreign entrant ISP

    Domestic cross-border operatorsNo foreign entrant ISP

    Domestic cross-border operatorsplus foreign entrant ISPs

    Domestic operators onlyplus foreign entrant ISPs

    Case Construction for relatinginfrastructure to logical networks

  • 8/3/2019 TV SIMS 050316 Scribd

    37/55

    Case Construction for relatinginfrastructure to logical networks1. LDCs, New network economies

    2. China (et al.?)

    3. Some post-colonial economies

    4. OECD countries

    Domestic operators onlyNo foreign entrant ISP

    Domestic cross-border operatorsNo foreign entrant ISP

    Domestic cross-border operatorsplus foreign entrant ISPs

    Domestic operators onlyplus foreign entrant ISPs

  • 8/3/2019 TV SIMS 050316 Scribd

    38/55

    Roadmap

    1. NormativeWhats important?

    What should we pay attention to?

    2. DeductiveConnecting priorities toobservable phenomena

    3. EmpiricalData collection,interpretation, caveats

    4. SpeculativeWhat makes the Internet grow?How are things changing?Where are we headed?

    5. PrescriptiveWhat can we / shouldwe do about it?

  • 8/3/2019 TV SIMS 050316 Scribd

    39/55

    Linking logical Internet networks tophysical telecom infrastructure! The Wealth of Nations

    The annual labour of every nation is the fund which originallysupplies it with all the necessaries and conveniences of life which

    it annually consumes, and which consist always either in theimmediate produce of that labour, or in what is purchased withthat produce from other nations.

    !The Wealth of Networks

    The Internet production of all networks is the fund which originallypresents each Internet user with information resourceconsumption possibilities, and which consist always either inlocal Internet production, or in what can purchased byinterconnecting with other networks.

  • 8/3/2019 TV SIMS 050316 Scribd

    40/55

    ! Statistical Multiplexing -- a single link-level phenomenon;What makes packet-based communications more efficientthan switched circuit communicationsInterleaving the data input of two or more devices on a single channel oraccess line for transmission through a network. In statistical multiplexing, achannel is assigned to a device only when that device has data to send orreceive.

    ! Logical Multiplexing -- a system-level phenomenon;

    What makes infrastructure sharing more efficient that purefacilities-based communicationsInterleaving the data input of two or more (logical networks) on a single(transport infrastructure). In logical multiplexing, partial/simultaneousbeneficial control of infrastructure enables multiple logical systems to extractmaximum utility from the shared infrastructure platform.

    How Are Multiple Providers Important?

  • 8/3/2019 TV SIMS 050316 Scribd

    41/55

    Case Group 1: LDCs

    ! Interaction Model:Routed IP = mainlines + networks (ASNs) + (lines * networks)

    ! 62/63* developing countries that came online after 1997;this test set minimizes cross-border (Tier One) effects, aswell as legacy IP allocation-related measurementchallenges. Saudi Arabia eventually omitted.*

    ! Panel data for six years, 1998-2003 -- 228 observationscoupling routing table summary data for each November1st early AM with ITU annual telecom developmentindicators.

  • 8/3/2019 TV SIMS 050316 Scribd

    42/55

    0.974

    0.544

    0.449

    0.790

    0

    10,000,000

    20,000,000

    30,000,000

    40,000,000

    50,000,000

    60,000,000

    70,000,000

    1999 2000 2001 2002 2003

    0.0

    0.1

    0.2

    0.3

    0.4

    0.5

    0.6

    0.7

    0.8

    0.9

    1.0

    10m

    20m

    30m

    40m

    50m

    60m

    70m

    0.1

    0.2

    0.3

    0.4

    0.5

    0.6

    0.7

    0.8

    0.9

    1.0

    1999 2000 2001 2002 20030.0670.024

    0.199

    0

    10,000,000

    20,000,000

    30,000,000

    40,000,000

    50,000,000

    60,000,000

    70,000,000

    1999 2000 2001 2002 2003

    0.1

    0.2

    0.3

    0.4

    0.5

    0.6

    0.7

    0.8

    0.9

    1.0

    US RBOC: BellSouth

    US RBOC: Qwest

    US RBOC: SBC

    US RBOC: Verizon

    10m

    20m

    30m

    40m

    50m

    60m

    70m

    0.1

    0.2

    0.3

    0.4

    0.5

    0.6

    0.7

    0.8

    0.9

    1.0

    1999 2000 2001 2002 2003

    National Market: Germany

    National Market: Italy

    National Market: France

    National Market: Spain

    Case Group 4: OECD Operators

    Main Lines

    In service

    Internet Resources*

    (Routed IP addresses)

    Left

    Axis

    IP/Line

    Ratio

    Right

    Axis

  • 8/3/2019 TV SIMS 050316 Scribd

    43/55

    RBOCs vs. Continental Europe (CE)

    ! Comparison potentially useful in three ways! Access networks of similar size, scope; very different at the IP layer

    !Major differences in domestic market structure, international assets

    ! Recent US telecom policy developments might result in RBOCs looking

    more like CE markets over time; are there any lessons?

  • 8/3/2019 TV SIMS 050316 Scribd

    44/55

    0.974

    0.544

    0.449

    0.790

    0

    10,000,000

    20,000,000

    30,000,000

    40,000,000

    50,000,000

    60,000,000

    70,000,000

    1999 2000 2001 2002 2003

    0.0

    0.1

    0.2

    0.3

    0.4

    0.5

    0.6

    0.7

    0.8

    0.9

    1.0

    0

    200,000,000

    400,000,000

    600,000,000

    800,000,000

    1,000,000,000

    1 2 3 4 5

    0.01

    0.1

    1

    10

    10m

    20m

    30m

    40m

    50m

    60m

    70m

    0.1

    0.2

    0.3

    0.40.5

    0.6

    0.7

    0.8

    0.9

    1.0

    1999 2000 2001 2002 2003

    0

    200,000,000

    400,000,000

    600,000,000

    800,000,000

    1,000,000,000

    1999 2000 2001 2002 2003

    0.010

    0.100

    1.000

    10.000

    0.0670.024

    0.199

    0

    10,000,000

    20,000,000

    30,000,000

    40,000,000

    50,000,000

    60,000,000

    70,000,000

    1999 2000 2001 2002 2003

    0.1

    0.2

    0.3

    0.4

    0.5

    0.6

    0.7

    0.8

    0.9

    1.0

    RBOCs vs. Continental Europe

    BellSouthQwest

    SBCVerizon

    Continental Europe All

    .01

    0.1

    1.0

    10

    200m

    400m

    600m

    800m

    1.0b

    US RBOCs

    US All

    3.914.68

    0.301

    0.119

    717m

    850m

    48m 15m

    10m

    20m

    30m

    40m

    50m

    60m

    70m

    0.1

    0.2

    0.3

    0.40.5

    0.6

    0.7

    0.8

    0.9

    1.0

    1999 2000 2001 2002 2003

    200m

    400m

    600m

    800m

    1.0b

    .01

    0.1

    1.0

    10

    56m 99m

    0.4470.745

    160m128m 125m 132m

    Germany

    Italy

    France

    Spain

    Main Lines

    In service

    Internet Resources*

    (Routed IP addresses)

    Left

    Axis

    IP/Line

    Ratio

    Right

    Axis

  • 8/3/2019 TV SIMS 050316 Scribd

    45/55

    !In the US, whole is greater than the sum of its parts!US RBOCs are pieces in a larger, national/global infrastructure system

    !US system has fostered logical multiplexing at several levels:

    ! National-level infrastructure sharing since 1966 (Computer I)

    ! Regional-level market sharing since 1984 (AT&T Breakup)

    ! Individual-level end user sharing since 1996 (Telecom Act)

    RBOCs vs. Continental Europe

  • 8/3/2019 TV SIMS 050316 Scribd

    46/55

    !Logical multiplexing has enhanced contingentUS advantages:!Internet historical origins in the US

    !History-driven, US-centric international infrastructure deployment

    !Infrastructure-driven gains from outsourcing content to the US

    !Content-driven gains that derive from the global use of English language

    ! The result: US continues to create 4x-5x more new networkenterprises than CE annually, and to produce 2x-10x more

    Internet resources than CE networks every year since 1999

    RBOCs vs. Continental Europe

  • 8/3/2019 TV SIMS 050316 Scribd

    47/55

    Roadmap

    1. NormativeWhats important?

    What should we pay attention to?

    2. DeductiveConnecting priorities toobservable phenomena

    3. EmpiricalData collection,interpretation, caveats

    4. SpeculativeWhat makes the Internet grow?How are things changing?Where are we headed?

    5. PrescriptiveWhat can we / shouldwe do about it?

  • 8/3/2019 TV SIMS 050316 Scribd

    48/55

    Implications of Provider Diversity Benefits

    ! Measures of provider diversity are useful adjuncts toempirical Internet analysis.

    ! Provider diversity confers positive effects which shouldbe measured against expected gains from potentiallyincompatible facilities-oriented policies.

    ! Policies and institutions that foster provider diversity(e.g., IXPs) can contribute to growth and localization ofInternet resources (users and content) that are theprimary objects of public interest claims about the Internet.

  • 8/3/2019 TV SIMS 050316 Scribd

    49/55

    More Policy Implications of This Research! Regional Internet Registries (RIRs) as Central Banks

    ! RIRs play a critical fiduciary role in legitimating providergrowth projections, in effect establishing a level playing fieldfor network operators worldwide. This role should be

    strengthened. Allocation policies should be consistent andenforceable (IPv4 orIPv6), so that IP utilization maintains aconsistent, rational relationship to access and content growth.

    ! WHOIS: Essential Reporting Requirement for the GIE! Fixing ASN-level WHOIS information could help strengthen

    the current inter-domain routing system as a vehicle forcommunicating value (announcements, traffic) in a diverse,insecure, multi-provider environment. It could also help tostrengthen BGP topology analysis (the method used herein) asa foundation for high-confidence, empirical policy research onthe Global Information Economy.

  • 8/3/2019 TV SIMS 050316 Scribd

    50/55

    ! On the Global Distribution of IP Resources! Many national network economies, including some that havecomplained about the existing technical management system,currently directly or indirectly command more than enoughunique IP resources to persistently connect every one of their

    telecom main lines to the Internet; claims of economic harmare difficult to reconcile with empirical record of substantialnetwork economy growth in someremedy-seeking countries

    ! On the Impending Exhaustion of IPv4 Resources!Apart from the unique US case, only a handful of nationalnetwork economies -- e.g., Australia, Canada, Korea, Japan,

    Taiwan, etc. -- have exceeded a 1:1 routed IP per main lineratio. Current worldwide installed telecom capacity isapproximately 1.1 billion main lines; current global Internetproduction encompasses just under 1.4 billion routed IP

    addresses, out of a possible 4.2 billion.* There is no shortage

    More Policy Implications of This Research

  • 8/3/2019 TV SIMS 050316 Scribd

    51/55

    Roadmap

    1. NormativeWhats important?

    What should we pay attention to?

    2. DeductiveConnecting priorities toobservable phenomena

    3. EmpiricalData collection,interpretation, caveats

    4. SpeculativeWhat makes the Internet grow?How are things changing?Where are we headed?

    5. PrescriptiveWhat can we / shouldwe do about it?

  • 8/3/2019 TV SIMS 050316 Scribd

    52/55

    IP addresses == Internet Resourcescaveats(!) and limitations(!)

    ! Production-centric

    ! Globally distributed Internet resources supported by multinational ISPs

    (e.g., NTT-Verio, MCI, BT, FTLD, etc.) all ascribed to country of UBO ratherthan country of deployment

    ! Diversity-centric

    ! Standard operational strategies for managing large host complexes willtend to flatten differences between very large content providers and theirmedium-sized counterparts

    ! Network-centric

    ! Impact of content producing network customers attributed to networkproviders until they build their own networks (e.g., Microsoft, Yahoo,Google, etc.)

  • 8/3/2019 TV SIMS 050316 Scribd

    53/55

    IP addresses == Internet Resourcescaveats(!) and limitations(!)

    ! Historically biased (in unmodified form)

    ! Significant technical and institutional changes in the mid-late 1990s

    dramatically improved the efficiency of IP address utilization; oldnetworks appear inflated compared to new entrants

    ! Analyses that encompass the full routing table will be moredefensible if/when these historical changes are explicitlyrecognized (e.g., by depreciating old and unchanged networks)

    ! Public network-centric

    ! Global view of public IP resources ignores significant national,enterprise-level variations in use of non-routable private IP address(RFC 1918) space

  • 8/3/2019 TV SIMS 050316 Scribd

    54/55

    IP addresses == Internet Resourcescaveats(?) and limitations(?)

    ! Features, not bugs!! Analytical framework that emphasizes production over

    consumption, diversity over scale, public interoperability overprivate segmentation will tend to reflect favorably on enterprisesand economies that produce more, support greater diversity, anddeliver more globally accessible Internet resources

    !

    Sensitivity to historical variations and non-networkcustomer segment factors -- areas for additional work

  • 8/3/2019 TV SIMS 050316 Scribd

    55/55

    Questions.Thanks!

    Tom VestResearch Program Manager

    Packet Clearing House

    http://www.pch.net

    [email protected]

    Special Thanks to:

    Bill Woodcock

    Randy Bush

    Geoff Huston

    Leo Vegoda

    Jonathan Aronson