During the past few months in setting up Hayai, it’s also been made terribly clear about one thing that could help the Broadband situation in India.

I’ve said it before and I’ll say it again: NIXI either has to change, or it has to go.

NIXI is supposed to be a non-profit organization (that part I believe), however it allows ISPs to essentially charge each other tariffs of Rs25 per GB. At 1gbit/s, with an in:out ratio of 3:1 and utilization of 80% or so, this comes out to a total monthly bill of Rs44 lakh, or about Rs17/GB.

That’s a hell of a lot of coin, considering that 2 months of that could pay for a year’s supply of bandwidth to Singapore. Yes, a year (well, a single STM-1 @ 155mbit/s, anyway, but the cost still only works out to about Rs13/GB).

As you can imagine, if I, as an ISP, can save Rs4 PER GIGABYTE, I’m damn well going to,

otherwise I have to pass that on to you – the consumer.

Now, one question. Why in the hell am I paying more per GB for DOMESTIC traffic than I am for INTERNATIONAL traffic? It’s pretty ridiculous, if you ask me (and if you’re reading this, you probably are).

But it doesn’t have to be like this.

In our quest to establish Hayai and to ensure that we can provide the fastest speeds and best pings in India, we’ve had many companies come forward and ask if they can put their equipment in our data centre (hosting companies and game server companies, mostly) but I figure: why should they have to put in OUR DC? Granted, it does give some competitive advantage, but, users on ISPs which don’t offer the speeds that we do shouldn’t have to suffer.

The solution? A new peering exchange.

We thought about doing it alone, but then I was alerted to the existence of another person who wants to do it, which is good, since the regulations probably prohibit me (personally) holding all but a limited role in such a project. So, if we/they can get it all set up, get past the various hurdles and get other ISPs to peer with them, then all going well, EXPIN should replace NIXI.

Below, I have posted emails between myself and the person attempting to set up this project. (IN REVERSE ORDER) – Please read and discuss back at broadbandforum.in

———————————————————————————————————-

On 6/10/2010 00:21, EXPIN wrote:
> Hey,
>
> Absolutely correct. The price structure is not a problem. We could even start offering free FE ports and charge for only GE and TE ports. Just to get more small ISPs and get up the traffic levels.
>
> All we need is a colocation space, Equipment (Cisco 6500 switch, I can arrange), a 24/7 monitoring system / NOC (which I can fix here in Sweden to begin with) and contact with few techs in Mumbai who can do the physical connection work (could be anyone with the knowledge of how to connect cables to a switch). In short, I can arrange everything…. just need someone (or a board) in front to tacle the legal issue.
>
> We would really need a plan here now =)
>
>
> /EXPIN
>
> —– Original Message —–
> From: “Mathew Carley”
> To: “EXPIN”
> Cc: “HNS – Ripunjay”
> Sent: Tuesday, 5 October, 2010 1:03:13 PM
> Subject: Re: Expin IXP
>
> Hi,
>
> Part of the problem as I understand it is not necessarily government,
> it’s that it has to be able to monitor activities: unlike Sweden (well,
> Sweden doesn’t require it *as much* anyway). I’ve recently been dealing
> with peering in NZ and it’s fairly straightforward: NZ$1495 for a
> 1gbit/s port, no usage charges, buy another link if your usage
> constantly exceeds 75%.
>
> Unfortunately, the fact that peering has always been relatively
> cheap/straightforward has not contributed to cheaper broadband: in fact,
> over the years it has got steadily worse. When I left NZ 7 years ago, my
> domestic traffic was counted as 10% of my international traffic – in
> other words, if I used 10GB of domestic traffic, I would be charged for
> 1GB. The situation is now that domestic and international traffic is
> charged equally. This is largely due (unfortunately) to Telecom NZ
> pulling out of the major peering centres, rendering them more-or-less
> useless: out of the 1 million subscribers in NZ, 600k are Telecom, 250k
> are TelstraClear and 250k are shared between all other ISPs in the
> country – the number of ISPs which I estimate rivals India!
>
> Despite this, I think getting the smaller ISPs on-board in particular to
> allow relatively free traffic exchange would give some of those
> providers an advantage over the major players, most of whom have Fair
> Usage Policies (which, although a reasonable idea in principle, is not
> very consumer friendly in India). Frankly, if we can get past the legal
> hurdles, I don’t see why it shouldn’t work in India. We all know what
> the broadband situation is like – the major operators are running
> 100gbit/s international capacity for over 1 million IP addresses, yet
> NIXI is barely touching 15gbit/s. By contrast, FICIX is averaging
> 20gbit/s with far fewer broadband customers nationwide.
>
> I would be very interested in participating in an organization, and as I
> outlined in my previous mail, the price ranges offered here in NZ would
> be a reasonable starting point: 10mbit/s is $295 (~INR10k), 100mbit/s is
> $695 (~INR23k) and 1000mbit/s is $1495 (~INR50k). Of course, since the
> idea is to revolutionize, we could go all out and have 100mbit/s at
> INR10k, 1000mbit/s at INR25k and 10GigE at Rs100k – with the policy of
> not routing traffic through other ISPs international links.
>
> This could create a similar situation to that which is in the Ukraine:
> for something like US$6 a month I was able to purchase 1mbit/s unlimited
> (upgradeable) – which included 100mbit/s unlimited traffic within the
> Ukraine itself. For Ukrainian hosted content and mirrors, this meant a
> fairly awesome experience – but the idea here would be similar, and
> hopefully would encourage much more content to be hosted in India itself
> (instead of the USA) and even more services to be developed – being that
> you’re in Sweden, I’m sure you know what I mean, and as I had suggested
> in my previous email, I think that the costs involved in running a
> mirror like Sourceforge (requires 150mbit/s dedicated) is probably why
> India doesn’t have one. The situation is surely the same for many other
> organizations as you have also mentioned.
>
> As for how to proceed? Well what do you need? Off the top of my head, a
> NOC, funding or a sponsor (I guess?), *probably* a license (and we need
> to ensure that we remain on the right side of the laws and regulations -
> this is probably where it’s all getting stuck), equipment (I’m sure you
> know what you want to run already) and some people (most of who, if I
> understand correctly, MUST be Indian citizens/residents).
>
> Ripunjay has more experience in the industry than I personally do, I’m
> fairly confident he can give us an idea of what else would be needed to
> get such a project underway.
>
> Ripunjay: welcome your thoughts?
>
> -Mathew
>
>
>
> On 5/10/2010 22:40, EXPIN wrote:
>> Mathew,
>>
>> Everyone I met in India regarding the IXP project didn’t understand what it was. It took me hours to explain them only. The only person who understood this was the CEO of NIXI himself. The situation is indeed monopolistic as far as i understood. I guess the government does want full control over the internal traffic in India. One reason why the peering policy at NIXI is multilateral.
>>
>> I think your idea of getting more ISP directors in the board is good! That will put some muscles in the project at least if nothing else.
>>
>> We in Sweden are running a free IX platform (www.sthix.net) for operators. Works pretty well where all operators are helping with the equipment, colocation and so on. But that might not really work in India.
>>
>> The best would be to create an organisation of few Directors, Get the permission to setup the exchange and charge a very small fixed amount every month or anually for respective ports (FE, GE, TE). Have the possibility of both multilateral and bilateral peering arrangements, IPv6, multicast, etc. Even voice exchange in future (VOIP).
>>
>> I had a chat with some of the global networks who have their equipment in TATA facilities in Mumbai. Some of them are Google, Yahoo, Microsoft, Akamai (Facebook) and many more who were very interested in peering! That way the local ISPs in India could peer away a lot of global traffic and reduce transit costs as NIXI does not allow non-licensees to connect and peer.
>>
>> This is also a very good opportunity to show this IX as a global IX and one of the biggest IX in Asia on the world map. A nice and clean way to reduce your bandwidth costs upto 60-70%. But it is pity that nobody understands the idea of it and what it could really result in =/ A total WIN-WIN solution for everbody from consumer to operator.
>>
>> The question is really how we proceed? =/
>> Because my arms are getting tired trying to reach the government for the permission.
>>
>>
>> /EXPIN
>>
>> —– Original Message —–
>> From: “Mathew Carley”
>> To: “EXPIN”
>> Cc: “HNS – Ripunjay”
>> Sent: Tuesday, 5 October, 2010 4:15:49 AM
>> Subject: Re: Expin IXP
>>
>> Mr Walia,
>>
>> Interestingly, I moved to India from Finland. I’m Kiwi by origin.
>>
>> I’m aware of some of the governmental limitations – I tend to get pretty stroppy with the government at least once a day.
>>
>> Someone at Tata or DoT is probably misunderstanding your intentions, but as I understand from the ISP license, licensed ISPs are allowed to privately peer relatively freely (maybe starting this thing is as “simple” as obtaining an ISP license from the DoT). The problem seems to be just that many ISPs don’t peer properly: ISPs that buy from Tata/VSNL peer with Tata and Tata resellers, ISPs that buy from Reliance/FLAG peer with Reliance and so on ad infinitum. It seems pretty stupid to me that the CEO of a non-profit non-governmental organization would be given the power to approve (or not) the opening of another IX – that would present a monopolistic situation.
>>
>> However, perhaps myself and Ripunjay might be able to help in some way – the main thing is getting ISPs on board. Being that Hayai is starting in Mumbai, we were planning to go to existing ISPs in Mumbai (Hayai, HNS, Fivenet, Nivyah, MTNL, Vashi Cable, TTML and various others: in fact, why couldn’t we approach each NIXI ISP member with this?) to offer them peering at next-to-nothing: 1 gbit/s port at maybe 1 lakh per month flat-rate or something to that effect, with similar policies to FICIX ( http://www.ficix.fi/english/newmember.php ) – in particular, paying attention to point #3.
>>
>> Considering that NIXI charges 3 lakhs a year plus Rs25 per GB (average price comes to ~ Rs17 per GB once you take in to account a 3:1 in/out ratio), but at 80% utilization this is still some 44 lakhs per month, however, despite this, knowing something about Indian mentality is that they will see 3 lakhs per year against 12 lakhs per year and choose the former. Ironically NIXI’s about page says “thereby resulting in better quality of service (reduced latency) and reduced bandwidth charges for ISPs by saving on International Bandwidth” – considering it’s almost the most expensive bandwidth in India, how can they possibly claim this?
>>
>> Due to this, this operation might even have to be done for nearly free if the ISPs were willing to supply equipment and pay an equal share for the premises, but this is a detail that would have to be worked out (in fact, I think MTNL and Railtel both have space in their respective facilities in Mumbai that might be ideally suited for the purpose).
>>
>> As well as simple peering in that IX, hosting mirrors of sites such as Sourceforge and housing Akamai boxes. If HNS got involved, they might consider moving speedtest.net and their Ubuntu mirrors too, who knows (not up to me, just planting seeds).
>>
>> If the legal hurdles can be overcome, there are some very significant possibilities that could arise from an IX with a more friendly tariff structure: who knows, perhaps NIXI and/or ISPs charging each other more than international rates would even see the error of their ways!
>>
>>
>>
>>
>>
>> Regards
>>
>> Mathew Carley
>> Director, Hayai Pvt Ltd.
>>

>>
>>
>> On 5/10/2010 08:02, EXPIN wrote:
>>
>> Hi Mathew,
>>
>> We are a bunch of scandinavian techs (indian origin) who wanted to setup an exchange in India due to NIXIs current structure (not helping at all).
>>
>> Problem we are facing is with the government. There is no proper law regarding the exchange point. And TATA (who were suppose to be our partner in this) is not allowing us to start this exchange without the permission from Department of Telecommunications.
>>
>> I’ve been to India twice now and also had meeting directly with the Minister of ITs secratary who forwarded me to the CEO of NIXI. I had meeting with him and the tech taking care of the NIXI platform. Seems that it is CEO of NIXI who can permit opening of another exchange in India.
>>
>> I’ve emailed them our proposal and all, but no answer from them in 6months now. I guess we do not know how to deal with the beaurocrats
>>
>> We might help each other open this project, but this requires a great contact circle in the government.
>>
>>
>> Regards,
>> EXPIN
>>
>>
>> —– Original Message —–
>> From: “Mathew Carley”
>> To: “EXPIN”
>> Sent: Monday, 4 October, 2010 11:00:41 AM
>> Subject: Expin IXP
>>
>> To whom it may concern,
>>
>> Your contact details were given to me by Ripunjay from HNS with regards to setting up an IXP.
>>
>> I’m highly dissatisfied with NIXI and it’s tariff structure, which to me, does not make any sense and does not contribute well towards reducing the costs of domestic bandwidth or efficiency of routing as an IXP is supposed to do.
>>
>> As it is the aim of Hayai to be India’s fastest ISP, we too were considering the possibility of setting up our own exchange, basing our structure loosely on FICIX ( www.ficix.fi ), but once I found out about your project, I thought there might be some potential for us to work with your organization.
>>
>> Are you able to tell me more about Expin, details, tariffs, if you currently have any active peers, etc?
>>
>>
>>
>>
>> Regards
>>
>> Mathew Carley
>> Director, Hayai Pvt Ltd.
>>