A CIO’s Guide to Network Infrastructure in the Era of Digital Transformation Part 1 of 3

Ah, the joys of a rural broadband connection. Where your live stream is more “still-life”, and you’re convinced that buffering circle is just a quirky decoration YouTube decided to adopt. What if I told you, dear regional broadband providers, that there’s a magical solution to many of these woes? One that isn’t whispered about nearly enough: Internet Exchanges (IX). Today, we'll speed-date IXs by diving into how to connect with them, why you should consider it, and your options. How to connect to Internet exchanges Now, before you start searching for an “IX hookup app,” here’s how the real connection goes down: Choose an IX: Not all internet exchanges are created equal. Different IXPs will have various connection policies, costs, and partners. Start with a local or regional IX as they will most likely benefit your immediate user base. Get the Hardware: Connection to an IX usually, but not always involves routers and switches. Don’t skimp here; consider it an investment, or look at solutions that don’t require hardware (check out Connect-IX). Physical Link-Up: Once you have your equipment, you must establish a physical link to the IXP. This might involve leasing a line or installing a fiber link. Configuration: With the physical link established, the next step is to configure your routers to talk with the IXP. Why connect to internet exchanges? Obviously, because it's like going to the best party in town – the one where all the important folks are. You meet peers, form direct relationships, and most importantly, bypass many middlemen that slow down your traffic and increase the cost of data transfers. Think of it as taking a direct flight instead of those pesky three-stop ones, while still paying less. The advantages for a broadband provider IXs can benefit many different types of businesses, but several benefits are especially valuable to regional/rural broadband providers: Speed: Direct peering means faster data transfer rates, and who doesn’t want that? Cost-Effectiveness: By reducing the number of ISPs you go through, you can save on transit costs. Redundancy: If one path fails, there’s always another. Multiple peers can lead to a more resilient network. Local Content: Many local and national content providers/services might be directly connected to the same IX, improving the user experience for your clients. Did somebody say savings? On average, the industry reports a potential cost savings of 20-60% on overall bandwidth expenses for ISPs connected to an IX. Let's paint a hypothetical: say your current bandwidth costs are $10,000 monthly. With a 30% saving (a conservative estimate), you're saving a whopping $3,000 monthly! That's $36,000 annually. Imagine the upgrades and investments you can make with those savings. And don't get me started on the potential for customer satisfaction and growth. Alternatives to Internet Exchanges Now, while IXs sound dreamy, sometimes there’s a need for alternatives, especially if an IXP isn’t within feasible reach. Direct Peering: Establishing direct connections with large content providers or ISPs, but this usually makes sense only for sizable ISPs. Transit Providers: These are the go-between guys, helping you connect to the global internet. They’re a must-have but can be pricier than an IXP connection. VPN Over the Internet: For those feeling extra savvy, you can establish VPN connections over the current internet connection to another location that's better connected. So, Why Consider the Alternatives? While IXs are wonderful, if your main user base frequently accesses content overseas, direct peering with an international content provider might make more sense. Additionally, not all areas will have an IXP within reasonable reach, making transit providers or VPN solutions more feasible. Wrapping things up… Rural doesn’t mean “left behind” in the digital age. With solutions like internet exchanges, the playing field is leveling. Every regional broadband provider has the opportunity to offer stellar service while pocketing some savings. If the dance of data has you dizzy or you’re contemplating which path is right for you, let us help! At Capcon Networks, we've guided many broadband providers in their dance with digital connectivity. Let’s waltz together toward a brighter, buffer-free future. Give us a spin!

If the world of broadband were a stock market, then public peering would be that hidden gem of a stock that not only adds shine to your portfolio but also promises substantial returns on investment (ROI). If you’re a regional broadband provider, public peering isn’t just a techy term; it’s a financial strategy. Let’s dive deep into the numbers behind the network. Why should broadband providers peer Into peering? It's not just about data; it's about dollars. The direct routes offered by peering mean you're not only ensuring efficient data flow but also guarding your purse against extra expenditure. Think of peering as a business class ticket for the price of economy - superior experience at a fraction of the cost. Want to jump to first class? Check out Connect-IX! ROI for Rural/Regional Broadband Providers At the end of the day, if it doesn’t make dollars, it doesn’t make sense. How exactly is peering going to create value and save money? 1. Speed and Efficiency = Customer Retention: Happy customers mean steady revenue. Improved speed and latency translate to higher customer satisfaction and lower churn. 2. Controlled Traffic = Predictable Expenses: When you see and control your traffic sources and destinations, you can better predict and manage costs. 3. Scalability Without Skyrocketing Costs: While your customer base and traffic might grow, peering ensures your costs don't grow proportionally, offering higher ROI as you scale. Direct benefits for the users and your bottom-line Happy customers tend to remain customers much longer, so at the end of the day, they are the ones who need to benefit. Key benefits to to your users specifically are: 1. Superior Streaming and Gaming: Happy streamers and gamers are less likely to jump ship, ensuring steady subscription revenue. 2. Quick Downloads = Happy Customers: Fast data transfers elevate user experience, leading to potential premium service upsells. 3. Uptime and Reliability: Fewer outages mean fewer customer service calls and compensation costs. Show Me the Money: Potential Cost Savings I’m sure all Jerry Maguire fans are already screaming, “Show me the money!”; so let’s look at the ROI already. Let's play with numbers. Assume a broadband provider shells out an average of $20/Mbps monthly to a transit provider, incurring a cost of $200,000 for 10Gbps traffic. Peering can significantly reduce this transit volume. Even if peering expenses are factored in, the costs are typically much lower than transit costs. A 30% traffic reduction via peering can lead to a monthly saving of $60,000. Annually, you're looking at an ROI-rich saving of $720,000. Peering Partners: A Broadband Provider’s ROI Boosters The only way peering moves the needle is it you can peer with partners that your users are actively using regularly. The more traffic you can share directly with providers, the more happy users you have and the less transit you need. So you need to peer with partners that get a lot of traffic and have high data usage. I think you may have heard of a few of these examples of active peering partners below: Netflix: By utilizing Netflix Open Connect, you can decrease the cost of traffic and elevate user experience. Google (Including YouTube): With Google Global Cache, serve popular content efficiently and economically. Amazon: Direct connections mean faster services and cost savings. Facebook: Given its traffic volume, direct peering can offer substantial cost benefits. Microsoft (Including Xbox Live): Improve gaming experiences and perhaps upsell premium gaming packages to your user base. Concluding with the ROI Rundown... Public peering isn't just about technology; it’s about treasury. By leaning into peering, regional broadband providers not only enhance service quality but also see a marked decrease in transit costs. If ROI is your song, and you're ready to dance but need some rhythm, we're here to lead. Dive deeper into peering with us and make your financials sing. Onwards to increased ROI!

DE-CIX, the world’s leading Internet Exchange (IX) operator and home to the largest carrier and data center neutral interconnection ecosystem on the planet and Capcon Networks, an industry leader in carrier agnostic connectivity, today announce a strategic partnership with Capcon in the United States. Capcon is uniquely positioned to address the US rural telecommunications market because they are not limited to specific geographies, making them an ideal reseller to work with nationwide. The symbiotic relationship between DE-CIX and Capcon Networks is perfect for the creation of a targeted transport-to-peering product, which is called Connect-IX©. This product allows rural networks to scale while improving their customer experience by enabling rural network operators to exchange traffic directly with each other, content providers, CDN’s and hundreds of networks over a single transport connection.

This article discusses what peering is, how it works, and how service providers and their users can benefit. From improved network performance to cost savings, peering is a game-changer for network operators supporting many users!

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A CIO’s Guide to Network Infrastructure in the era of Digital Transformation.

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