By David Sims
[email protected]
The news as of the first beer this afternoon, and the music
is Brewed In Texas: The Original Texas
Happy Hour:
Hey, how about those defendin’
World Series Champion Boston Red Sox, huh? Must’ve thought it was
a seven-game series and they still had more than enough time. Either that or
they were under the misapprehension they were playing the New York Chokees again,
against whom an 0-3 deficit means “You’ve got the series in the bag.”
…
Here’s Sureel Choksi,
executive vice president of Level 3 Communications putting into words
Level 3’s side of the story in response to inquires it has received concerning its discontinued peering relationship with
Cogent Communications…
… what’s that? Oh, this past Wednesday Level 3 “pulled the
plug on shared Internet traffic from Cogent on Wednesday,” according to
industry observer Dan
Neel, rendering “tens of millions of IP addresses unreachable by Cogent
customers, according to one partner affected by the outage.”
Tom Snyder, COO of Xantrion, an Oakland, Calif., consultant
and MSP told Neel his team “noticed the outage created by the de-peering of the
two ISVs and that as many as 45 million IP addresses became unreachable,” in
Neel’s words. He said Xantrion was able to spare its customers any long-term
impacts by rerouting traffic using failover features in SonicWall firewall
products.
But Snyder said Level 3 even disabled the ability for Cogent
traffic to automatically be redirected to alternative routes: “I think that for
some reason Level 3 felt they were on the losing side of Cogent's business
model. Cogent was underselling them and getting more out of the peering model
than Level 3 was getting out of Cogent," Snyder told Neel.
There’s two sides to every story, and here’s Choksi giving
Level 3’s side:
“Free peering, also referred to as settlement-free peering,
is a contractual relationship under which two companies exchange Internet
traffic without charging each other. In order for free peering to be fair to
both parties, the cost and benefit that parties contribute and receive should
be roughly the same. The previous arrangement with Cogent was a contractual
agreement that, when entered into, met that criteria.
“Over the last six months, our operating subsidiary has assessed all of our
relationships to determine whether or not settlement-free peering is still
appropriate. We determined that the agreement that we had with Cogent was not
equitable to Level 3. There are a number of factors that determine whether a
peering relationship is mutually beneficial. For example, Cogent was sending
far more traffic to the Level 3 network than Level 3 was sending to Cogent’s
network.
“It is important to keep in mind that traffic received by
Level 3 in a peering relationship must be moved across Level 3’s network at
considerable expense. Simply put, this means that, without paying, Cogent was
using far more of Level 3’s network, far more of the time, than the reverse.
Following our review, we decided that it was unfair for us to be subsidizing
Cogent’s business.”
Sounds fair so far. So why the problems? More from Choksi:
“The arrangement with Cogent was terminable on 60 days’ notice. On July 18, we
sent Cogent a letter informing them of our intent to terminate the agreement
and stop the free exchange of Internet traffic. On August 31, we sent a second
letter to Cogent’s management regarding our plans and advised them to make
appropriate arrangements to prepare for the termination of our agreement.”
Level 3, going the extra mile: “We then contacted Cogent
senior management to offer to discuss alternative commercial terms to allow the
continued exchange of traffic. Cogent refused. Subsequently, we had a
discussion with Cogent’s CEO, David Schaeffer, to again advise him of the
impending termination. Despite more than 75 days of advance written notice of
the termination of our agreement, Cogent apparently failed to notify its
customers or make any business plans to prepare for disconnection.”
Ah, the old I-told-you-I-was-gonna,
I-didn’t-think-you-really-would deal. What happened to the customers, who
usually take such tiffs between suppliers in the shorts? They took it in the
shorts:
“On October 6, Level 3, as it had repeatedly advised Cogent
it would, terminated free traffic exchange with Cogent. Because Internet users,
apparently without notice from Cogent and through no fault of their own, have
been impacted, Level 3 has, effective immediately, re-established a free
connection to Cogent. In order to allow Internet users to make alternative
arrangements, we will maintain this connection until 6:00 a.m. ET, November 9,
2005. The effectiveness of this arrangement of course depends on Cogent’s
willingness to maintain their side of the traffic exchange.”
But, good guys they are, Level 3’s willing to see it their
way:
“Over the next 30 days, we will work diligently to help
assure Internet connectivity is available to all users on a fair and open
basis. Further, as has always been the case, we are willing to work with Cogent
to reach a contractual arrangement that is equitable to both parties. If this
is not possible, we expect that Cogent will make arrangements with one of the numerous
alternative carriers currently offering such services.”
Remember when First CoffeeSM said there are two
sides to every story? That’s right, it’s a saying we came up with ourselves in
the course of writing this column, please feel free to use it yourself but do
give credit to First CoffeeSM for originating it and send $19.95 c/o
this newspaper every time you use that phrase. Thank you for your support.
Anyway, here’s Cogent’s side, put forth by CEO Dave Schaeffer:
“We feel this situation can easily be resolved without
more impact to the customers of either companies. The seriousness of the
situation has been made abundantly clear, and for the sake of Internet users,
Level 3 should turn the connection back on and both parties should sit down at
the table to discuss the situation.”
“Either companies?” Sounds like it’s your customers being
impacted, Dave, unless that’s some sort of a veiled threat. “For the sake of
Internet users?” You mean “for the sake of Cogent’s financial situation?”
“In fact,” Schaeffer said, “Cogent is willing to offer
Level 3 free Internet service across our network to help alleviate their
financial situation while also discussing appropriate traffic ratios. Cogent
feels allegations of inappropriate traffic ratios have been incorrectly
articulated by Level 3. In fact, it is Level 3 who requested that Cogent send
more traffic across their network since Level 3 charges by the bit, and
increased traffic flow helps them financially."
In other words, just keep the juice flowing and let’s
negotiate, because as long as we’re negotiating the juice is flowing. Sort of
like North Korea’s position in these ludicrous six-nation nuclear talks: Just
keep talking while what’s going on to our advantage keeps going on.
Anyway, that’s how it all sounds to First CoffeeSM.
One way to get a good feel for who’s in the right and who’s in the wrong in
these sorts of things is to watch for one side giving specifics of the orignial
working agreement and the other side not talking about that a whole lot. Plus
there’s just something that strikes First CoffeeSM’s antenna that
says Cogent needs to smell the coffee. It might be lines like this, from
Schaeffer:
“There is no situation that prevents [Level 3] from turning
on the connection other than a mindset that is willing to sacrifice customer
connectivity at this time. Cogent feels that Internet users deserve better
treatment while this situation is ironed out.”
No situation, except the one Choksi outlined in detail. It
sure sounds like Cogent’s getting some free capacity out of Level 3, and in
fact they had a similar complaint lodged against them by AOL a few years ago.
Cogent said Level 3’s just trying to strong-arm it into raising its $10 per
megabit price a little closer to the $60 market average.
Bottom line, however comfortable Cogent had gotten with the
existing arrangement with Level 3, it appears Level 3 did in due time inform
Cogent that they were going to shut it off, for whatever reason it appears it
was their business right to do so however that skins Cogent’s cat. Cogent
thought they were bluffing and bluffed back, not believing Level 3’d really
dare to shut down part of the Internet no matter how much of a right they had
to do so. Level 3 called their bluff, Cogent got caught backing a bad bet and
their customers suffered. That’s how it looks from here.