Internet Wholesale Bandwidth Options

There are two types of organizations that buy Internet bandwidth. Most are end users. They want the access for their employees. The others are resellers. They take large Internet connections and divvy up the bandwidth to hundreds or thousands of individuals and businesses. These are Internet Service Providers (ISPs) looking to buy at wholesale and sell at retail.

The largest networks in the world, called Tier 1, don’t purchase Internet access. They are part of the core network itself. Those major world wide networks exchange traffic on basis of equals called peering. Each network gets as much traffic as it sends to the others, so all benefit and no money is exchanged.

Everyone else has to get to the Internet by accessing one of these Tier 1 networks. The next level down, the Tier 2 networks, are also very large Internet service providers. Since they don’t have the enormous global traffic to participate in peering, they purchase what is called IP Transit. This is Internet access sold on a per Megabit per second per month basis.

Smaller Tier 3 networks can purchase IP Transit from Tier 2 networks, if they are large enough to have an assigned AS or Autonomous System number (ASN) to identify them as part of the Internet. Large scale ISPs fall into this category as well as some large corporations and other organizations.

Local and regional Internet Service Providers, including WISPs (Wireless Internet Service Providers), buy DIA or Dedicated Internet Access. DIA connections are like point to point private lines, except that one end connects to the Internet. Other private line characteristics still apply. The bandwidth provided is completely dedicated to the ISP and not shared with anyone else. There are generally SLAs or Service Level Agreements that spell out characteristics such as maximum latency, jitter and packet loss as well as time to respond to outages and time to make repairs.

Dedicated also means that there are no extra charges for heavily loading the line. You can use the entire capacity of the circuit in both directions or only some of it. The price is the same.

The smallest DIA service is usually a T1 line running at 1.5 Mbps. This is a symmetrical service, meaning 1.5 Mbps upload and 1.5 Mbps download. Usually the download path is much heavier loaded than the upload path for typical Internet access. If fact most consumer Internet access is sold with 5x to 10x higher speeds on download than upload. For business users, upload speeds can be important when transferring large files to remote backup sites and servers within colocation centers.

Obviously, T1 lines can’t serve a large user base but they work great for WiFi hotspots and rural or subdivision WISP service where signed-up customers number in the dozens, not hundreds. A nice feature of T1 lines is that they can be bonded by adding more lines to double, triple and quadruple bandwidth up to about 10 or 12 Mbps. The other nice feature of T1 lines is that they are available where other line services don’t reach. If you can get business telephone system into a facility, you can probably get T1 DIA service.

The next increment in traditional telecom bandwidth is DS3, also called T3 lines. This service runs at 45 Mbps which is large enough for a good size service provider to offer competitive bandwidth. Beyond that, SONET fiber optic services include OC3 at 155 Mbps, OC12 at 622 Mbps and OC48 at 2.5 Gbps are very popular.

A strong competitor to T-Carrier and SONET bandwidth is Carrier Ethernet. It comes in two flavors, Ethernet over Copper (EoC) typically from 1 to 50 Mbps and Ethernet over Fiber (EoF) from 10 Mbps to 10 Gbps. In a some metropolitan areas, you can also get EoFW or Ethernet over Fixed Wireless at DS3 and Fast Ethernet speeds. Where available, Carrier Ethernet tends to have considerably better pricing than other services.

Do you resell Internet access to other ISPs or end users? If so, see if you can get better wholesale pricing on Dedicated Internet Access and IP Transit services.

GTT Expands Ethernet Footprint With PacketExchange

Global telecommunications carrier GTT is moving to expand its Ethernet service footprint worldwide by acquiring Ethernet service provider PacketExchange.

PacketExchange is a London based carrier with an impressive 10 Gigabit fiber optic IP backbone network that covers Europe, the United States and Asia. A good portion of this network was acquired when PacketExchange acquired MZIMA Networks in 2010. The combined resources provide private line services plus MPLS and VPLS networking and peering.

GTT’s acquisition of PacketExchange reinforces the idea that we’re entering the age of Carrier Ethernet. Up till now, the world’s networks have been dominated by telephone company technology for switched circuit operations. The popular T-carrier wireline services and SONET/SDH fiber optic services were all devised to be compatible with time division multiplexed voice and data. The new paradigm is packet switched networks, with Carrier Ethernet gaining prominence.

You see this reinforced by the emergence of Ethernet Exchanges, such as Telx, that offer E-NNI (Ethernet Network to Network Interface). What E-NNI does is create a peering opportunity for IP network operators to exchange data and, thus, expand the reach of their networks. This opportunity speeds up the ability of Ethernet to take over the world’s telecommunications traffic without the necessity of one dominant international carrier to dictate standards.

PacketExchange makes a nice complement to GTT which is already a global network integrator with many POPs (Points of Presence) in the United States, Europe, Asia, Australia, Africa and South America. GTT serves 80 countries in all with a wide portfolio of Private line, Ethernet, DSL broadband, point to point Wireless and managed network services. They are often the carrier of choice for companies that need to interconnect offices across international borders. MPLS network services that are particularly useful in linking multiple locations include MPLS VPN and VPLS services.

Ethernet and MPLS networks complement each other nicely. MPLS networks use a proprietary routing technology called label switching in place of IP routing or SONET/SDH multiplexing. Label switching encapsulates virtually any protocol and transports the packets form location to location. At the network edges, packets enter and leave the network unaltered. This allows MPLS networks to support layer 2 switched services such as Ethernet Private Line and Ethernet LAN. It’s entirely possible using Ethernet access to MPLS networks to create an international bridged LAN that includes locations worldwide.

The power of Ethernet as a universal network protocol to support converged voice, video and data networks is only beginning to be seen. It’s a natural development, considering that corporate LANs long ago standardized on the switched Ethernet protocol. What makes more sense than to seamlessly expand those LANs into the metropolitan and long haul connections necessary to support regional, national and international business.

Does your company have a need to connect multiple business locations, domestically or internationally? If so, take a closer look at Ethernet business bandwidth solutions to support your organization’s technical goals at a cost often lower than with traditional telecom services.



Note: Ethernet switch photo courtesy of Justin Smith on Wikimedia Commons.

IP Transit vs Peering vs DIA

We live in a world of networks and networks of networks. The Internet is the ultimate example of networks upon networks upon networks. All of these networks need some way to communicate. For that, you have the choice of IP transit or peering.

Network to network communication would be unnecessary if the Internet was constructed the way most people envision it. When we think of the Internet, we think of one giant network that links everyone to everyone. It generally works that way for the end user, but the notion of a monolithic universal network is an illusion. Look inside the Internet and you’ll find it to be a collection of large, medium and small networks that all work together to get packets from one point to another. Let’s see what that takes.

At the top of the heap are Tier 1 networks. These are huge international IP networks that have points of presence in key locations around the world. Tier 1 networks are indeed the superhighways of the Internet. But like all highway systems, they don’t go everywhere. In order to create an Internet, you need to connect these superhighways together.

The connection process is called peering. The name suggests that this is a connection between equals or peers. That’s exactly right. Huge networks have huge amounts of traffic. If two of these networks peer to exchange traffic on an equal basis, then each network effectively doubles its reach. Network A has access to all the customers on Network B and vice versa.

Tier 1 networks peer on a settlement free basis. In other words, the networks are interconnected via high capacity routers and the traffic flows back and forth at will. Settlement free means that there are no toll booths at the border. Neither network pays the other because they are getting equal value through peering.

Not all networks are the same size. Smaller networks, called Tier 2, have less capacity and less reach than Tier 1 networks. Tier 1 networks aren’t about to peer with Tier 2 networks at no charge because the smaller network would be getting a lot more value from the arrangement than the larger one. What Tier 2 networks can do is ban together and peer among themselves to create a much larger entity that can compete with those Tier 1 networks. If they want access to the Tier 1 networks, they can pay a settlement charge based on the traffic imbalance. That charge is called IP transit.

Internet Service Providers have a choice when it comes to accessing the Internet. They can spend the capital and maintenance cost to build out their networks to the point where they can peer with other large networks, or they can just purchase IP transit services from a large network and avoid the investment in equipment and personnel.

Very small networks or medium size companies with their own internal networks will choose to buy Dedicated Internet Access rather than IP transit. You need to be a network operator with an assigned AS or Autonomous System number (ASN) that identifies each network on the Internet in order to qualify for IP Transit services. Some large organizations with connections to multiple networks may fit this definition, as well as large scale ISPs.

Everyone else, from local WISPs (Wireless Internet Service Providers) to SMBs (Small to Medium Size Businesses) simply purchases Dedicated Internet Access by the Mbps or Gbps of bandwidth. Operation of the Internet is left to those networks who specialize in that service.

What type of Internet connectivity makes the most sense for your business? It depends on whether you are a large ISP, a content delivery network, a large corporation with international locations, or a network of retail stores. Why not compare pricing options for IP Transit, Peering, or Dedicated Internet Access, as appropriate? Complementary consulting services are available to help you sort through the possibilities.

International Dedicated Internet Access

If your business depends on the Internet for information, sales or its entire operation, what you need is rock solid Internet access. For international companies, you need that rock solid Internet access at each and every location.

The Internet has a robust top-tier network infrastructure, with the world’s largest telecommunications providers peering to ensure that any packet from any place on Earth can get to any other place on Earth. The inherent design of the network is self-healing. If a path goes down, the core routers will find an alternative path from source to destination. This is all automatic and distributed throughout the Internet. Many of the performance limitations experienced by businesses and individuals are more related to the access networks than the core of the Internet itself.

For sure, the lack of determinate paths, quality of service mechanisms, and latency minimization does pose some limitations on Internet performance related to real-time processes. That’s especially true for two-way voice and video. That, plus transient congestion issues and inherent security, is what drives the expansion of content delivery networks and private IP networks. Even so, for e-commerce, public information distribution, email communication, team collaboration, remote workers, and many other needs, using the Internet is the most economic connectivity option if not the only one that makes sense. There’s no reason you can’t leverage the power of this enormous public resource with the right access service.

The gold standard for Internet connections is called DIA or Dedicated Internet Access. What dedicated means is that there is a certain amount of bandwidth dedicated to your exclusive use from your business location, through your Internet service provider and out to the Internet.

But aren’t all Internet connections dedicated? Not by a long shot. Virtually no residential Internet services, mobile broadband or bargain-rate Internet services sold to small businesses are dedicated. Instead, they are what is called “shared” connections. You and a few dozen to a few hundred of your fellow broadband users share a block of dedicated bandwidth between your location and your Internet service provider.

Why is this done? Simply to reduce the cost of service to make it more attractive. Many users, especially individuals, prefer low cost to guaranteed performance. They don’t mind so much if files take varying times to download or that VoIP audio has some distortion or hiccups. They’ll certainly be frustrated if their “best effort” Internet service goes down for a few hours or, in extreme cases a few days or weeks, but that won’t drive them to spend more for professional grade DIA.

Any business using the Internet for more than casual access can’t tolerate varying and indeterminate performance. The costs of lost business and productivity mount up faster than the cost of digital line services. That’s why serious businesses quickly turn to dedicated connections with service level agreements to ensure maximum availability as well as bandwidth. That bandwidth ranges from T1 lines and Ethernet over Copper broadband up through SONET and Carrier Ethernet over fiber optic connections. What you need depends on your particular situation. It could be anywhere from 1 Mbps right on up to 10 Gbps or more.

International companies have special needs, in that technology does vary somewhat worldwide. An obvious example is the use of T1 lines in the United States and E1 in Europe. An ideal situation is to work with a provider that can give you the right level of bandwidth with the right interface at each of your locations. That’s what International network service companies do. You have the advantage of one vendor to deal with and one bill for all of your broadband connections and virtual private networks (VPN) that ensure security on the largely insecure Internet.

Are you in the market for more robust Internet connections to serve your business locations, either domestic USA or worldwide? If so, find out how much quality and bandwidth you can get for your budget for International Dedicated Internet Access.

E-NNI Helps Ethernet Go Global

Metro Ethernet service has been growing by leaps and bounds. That’s not surprising, considering that Metro Ethernet services generally offer higher bandwidths at lower prices than traditional telecom services. They also offer features such as virtual private line and LAN service that weren’t previously available. As business appetite for Ethernet in the WAN grows, it’s only natural that businesses look to connect everywhere through their Metro Ethernet connections.

Metro Ethernet was intended to be just that. The "metro" in Metro Ethernet means metropolitan. It’s a service that is perfect for connecting two or more business locations within the same city or greater metropolitan area. The geographical range of coverage is set by the service footprint of the carrier providing the service.

Many competitive carriers now base their core networks on IP packet switching technology, not the traditional circuit switching architecture. They’ve embraced Carrier Ethernet to offer Ethernet services that span metropolitan areas so that companies can interconnect branches in cities across the country.

What’s been more difficult is getting the same type of universal access that companies have enjoyed with the Public Switched Telephone Network. After all, the days of monopoly in telecommunications are long gone. What’s needed is a standardized way for all those competing carriers to exchange traffic so that their customers can have a much wider geographical presence. Thats what E-NNI is all about.

The Ethernet External Network-to-Network Interface (E-NNI) is an industry standard ratified this year by the Metro Ethernet Forum. It provides a way for carriers to exchange traffic without having to worry about losing service features or having to create ad-hoc interfaces carrier by carrier. A separate UNI or User Network Interface connects each customer to its respective carrier.

The E-NNI specification makes it easy for carriers to exchange voice, data and video traffic at Ethernet layer-2. This make switched networks that span multiple carriers possible. To the user, the Ethernet WAN may look like one large cloud. To the service providers, it is a collection of clouds interconnected by peering through E-NNI connections.

The ratification of the E-NNI standard is giving rise to Ethernet Exchanges, such as Telx, that provide worldwide interconnection services for service providers at a carrier-neutral facility. Rather than having to build-out their service footprints to everywhere customers want connections or going through the laborious process of negotiating Private Ethernet NNI agreements, carriers can simply connect with each other through an Ethernet Exchange so that each participant has access to a much larger geographical footprint.

Can you company benefit from the growth of Carrier Ethernet and the many services it offers? The best way to find out is to get a competitive quote for your connection needs, be they across town or to the other side of the globe.