Internet Exchange Point in Nicaragua Reservation for changes
after recieving the ISP survey from Nicaragua, interviews, further analysis etc
Internet Exchange Point in Nicaragua Reservation for changes
after recieving the ISP survey from Nicaragua, interviews, further analysis etc
Buisiness case for the ISPs NICIX organisation
Buisiness case for the ISPs NICIX organisation
Internet Market in Nicaragua is growing fast
Fast growth, The internet market has increased with 212% from year 2000 to 2002.
Growth potential, only about 100 000 (2%) of the population is connected to internet today
If the growth is sustainable it will reach over 800 000 users year 2005.
The number of ISPs has increased to 11 year 2002
CAGR=212% CAGR=191% Number of Internet users in Nicaragua Number of ISPs in Nicaragua Note: The number of users within a country that access the Internet may include users who access the Internet at least several times a week to those who access it only once within a period of several months.
Source: http://www.odci.gov/cia/publications/factbook/geos/nu.html
http://www.telegeography.com/ee/free_resources/excel/internet_indicators.xls
Interview with Swedish Trade Council and Foreign Ministry
IXP enables improved quality with lower cost
Improved Performance and reduce delays
Lower costs
Enabling new services and revenue opportunities such as
Streaming Video/Audio
Video-conferencing
Telemedicine
E-Commerce
E-Learning
E-Governance
E-Banking
Source: Interview with Americo Muchanga and (spanish guy sitting in the same room)
Team amalysis
Connect local traffic directly
Speed up local traffic
Increase bandwidth for international traffic
Gathers international traffic
Decreases unnecessary international traffic
Economy of scale, when negotiating the international tariff
IXP connection is crucial for a ISPs survival - Kenya Case as illustration improves the performance
ISP A ISP B 200-900ms 200-900ms 5-20ms USA In this case a IXP connection reduces the re to 20 ms or 1% of the original travel time
Note: The number of users within a country that access the Internet may include users who access the Internet at least several times a week to those who access it only once within a period of several months.
Source: http://www.odci.gov/cia/publications/factbook/geos/nu.html
http://www.telegeography.com/ee/free_resources/excel/internet_indicators.xls reduce delays and thereby improves the performance. No need to travel to the backbones in USA who has been referred to as the “backbone” of the Internet or As more European countries established IXPs, some countries began using Europe for their backbone connectivity.
.
IXP connection is crucial for a ISPs survival - Kenya Case as illustration reduced expenses
Source: KIX
Telkom Kenya Bandwidth Tariffs Dec. 2001
IXP connection reduced expenses, no need to use expensive upstream provider to exchange local traffic over a trans continental link.
In this case the casts are reduced to about 10 % of the original cost.
Bw International Local
64k $1,687 $190
128k $2,386 $274
256k $3,375 $378
512k $4,773 $535
1MB $6,750 $757
IXP connection is crucial for a ISPs survival - Kenya Case as illustration Nurture local commerce
Source: KIX Nurture local commerce, Independent Research shows that Africa loses over US$400 Million/yr for traffic exchange via other continents
A strong, domestic Internet industry creates high-paying knowledge worker positions
Domestic traffic exchange reduces the importation of foreign content and cultural values, in favor of domestic content authoring and publishing
IXP connection is crucial for a ISPs survival - Kenya Case as illustration Summary
Source: KIX reduce delays and thereby improves the performance. a IXP 0connection can reduce delays to 1% of the original travel time.
IXP connection can reduced expenses to about 10 % of the original cost.
The improved quality and the cost reduction enables new services and revenue opportunities such as
Streaming Video/Audio
Video-conferencing
Telemedicine
E-Commerce
E-Learning
E-Governance
E-Banking
Nurture local commerce and culture, Independent Research shows that Africa lost over US$400 Million/yr for traffic exchange via other continents
The more ISPs interconnect, the more value each individual ISP can offer it’s customers!
Buisiness case for the ISPs NICIX organisation
Building NICIX requires a lot of none-technical work
Source: Material from Southern African Internet Forum, 13th April 2003 A Peering/IX initiative involves 10% technical work.
- Buying equipment
- Setting up the network
-Technical maintenance
The remaining 90% is socio-political engineering.
- Cooperation between the ISPs
Organisation structure
Location
Ownership
Definition of internal peering policy framework
- Official regulatory support
NICIX is administrated by AIN - the ISP association in Nicaragua
Symbols ISPs that has accepted the connection to the NICIX AIN is a ISP association in Nicaragua
It has 11 ISP members
6 of them have accepted the connection to NICIX
Source: Principal
Interview with team members
NICIX-organisation is headed by the ISP association in Nicaragua
BOARD of AIN
The ISP association of Nicaragua Manager of NICIX ISP ISP ISP ISP ISP ISP ISP ISP NICX managed by a manager directly under the board of AIN
Source: Team analysis
Budget draft
Source: interview with Americo Muchanga
Team analysis and discussion Running costs
- rent ~ 100 USD/month
- Electricity ~ 100 USD/month
- Telphone ~ 50 USD/month
- Security guard ~ 75 USD/month
- Depriatiation
Upgrade costs
New equipment
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