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Indeed, Internet has changed drastrically over the last 10 years

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Dramatic Changes in the Internet Over the Last Decade

Among the cross-cutting debates and counter-arguments about proposals to make a fair contribution to the cost of large traffic generators to telecommunications networks, one is particularly noteworthy. It is often said that this issue was addressed over a decade ago and that he did not get the support he needed to move forward. The claim that nothing has changed on the Internet in the last decade is astonishing..

Actually in the last 10 years everything changed On the Internet: The Internet’s network architecture has changed, business models have changed, traffic volumes have increased exponentially, and the balance between the companies that make up the Internet ecosystem has shifted.

From the early days of the Internet based on websites, the large number of companies, the balanced ecosystem between producers and consumers of content, and the telecommunications carriers that transport that content, over the past decade, very small We’ve seen the consolidation of the Internet, dominated by the corporate world. Number of companies: Hyperscalers. Their business sense and “winner takes allAs trends in internet business models, these companies will have a dominant position in the internet ecosystem by 2022, and by 2022 they will already be indisputable, undisputed, and It’s causing a structural problem that needs a solution. This situation has prompted regions such as the European Union to push legislative responses such as the Digital Markets Act (DMA).

If this reality cannot be denied, all companies and authorities concerned with the future and smooth functioning of the digital ecosystem should recognize that it is time to revisit some of the rules and models agreed upon in the early Internet age. must be considered. It no longer fits the reality of 2022. It’s time to lay a stronger foundation for the new era of the Internet than we have now. This can only be done based on an understanding of the Internet architecture and its evolution.

early internet architecture

Internet is a network of networks, which consists of thousands of interconnected networks. The interconnection architecture of networks on the Internet was originally hierarchical. The network had three levels. global network Its interconnection ensured complete access to any content or any user worldwide. Tier 2 compatible Regional networkTier 3 is local network A place where Internet users and Content and Application Providers (CAPs) are connected. Tier 1 is what is traditionally known as the Internet. spine.

In the early days of the Internet, application and content providers and users were responsible for connecting to operators who provided Internet access services and to higher operators to enable transit to the global Internet.

As you can see, the interconnection between the different networks that make up the Internet was done using two different services.When a lower-level network connects to a higher-level network, the so-called transit serviceThis service allows users of this network to reach any destination or access any content hosted on any network connected to the Internet.Networks at the same level are called peering agreementThe use of transit services can be avoided by interconnecting the two networks directly. The service provided direct access to the users and content of two interconnected networks, but no visibility of the users and content of the other network.

At the commercial level, in a transport contract, a “downstream” network paid an “upstream” network for services. In contrast, peering agreement Based on the number of users and content providers on each network and on unregulated standards of traffic exchanged. Carriers seeking interconnection tend to have similar network structures, so the services offered (and associated costs) were comparable to each other. Implicit assumptions of network symmetry (particularly access network symmetry) and costs often lead to peering A hypothetical arrangement in which payments made to cover costs incurred in a counterparty’s network are set off against payments received from that counterparty. The parameters of symmetry in traffic exchange are, in this early Internet model, peering pact.

Flattening the Internet Architecture

The architecture of the Internet is designed to support video traffic (or streaming). Several elements have been introduced over the years that have dramatically changed the Internet architecture. Video, on the other hand, required capabilities that the basic Internet architecture could not provide. This gives us one factor, the CDN (content delivery network), cloud Specializing in video distribution This reduced the need for more capacity in the upper level networks (1 and 2), reduced latency (the time it took for content to reach the end user), and improved the user experience. Meanwhile, as the large hyperscalers grew and consolidated their platform models, they began building their own selective transport networks (the most profitable tier) and their own selective CDN infrastructure.

With this change, A complete transformation of the technical architecture of the InternetHowever, the interconnection business model associated with early Internet architectures has not evolved. None of the interconnection rules created for the first internet could be modified. Rather, hyperscalers are not allowing these rules to change given the benefits they derive from this interconnection model, and are using their undisputed market power to impose rules and conditions. It can be said that there are

With the introduction of these elements, the Internet has evolved over the past decade into a flatter network where the earlier layers and hierarchies have disappeared. Having reached a dominant position and sufficient business scale, hyperscalers bypass transit networks and connect directly to many operators’ networks at the cheapest tier. But not as a user of the Internetas they did in the early stages, but “operator“using peering pact. By creating their own infrastructure, large hyperscalers can now avoid paying not only Internet transit costs, but also content delivery costs, have no dominant position, and enjoy free peering. It gave me a competitive advantage over other players that I couldn’t force. pact.

The architecture of the Internet has become highly centralized and dependent on a small number of players: large hyperscalers.

Flattening the Internet Architecture

Are you an internet user, carrier, or content provider?

Today, the majority of Internet transit traffic is generated by large hyperscalers. Additionally, the delivery of content to the end consumer bypasses the traditional Internet hierarchy. Currently, 3 out of the top 5 providers of internet transit connectivity are hyperscalers. These companies have direct access to most networks without going through the Internet hierarchy.

Surely it’s time to ask if The internet giant is a connectivity provider is under the supervision of a national regulatory body and subject to its decisions; or Application and Content Providers or Internet Users, is obligated to pay for the connection services received. What role should they play in the interconnection model of the Internet?

Benefits of not incurring network usage costs for operators

When traffic from large hyperscalers increased and these companies aggregated most of their internet traffic, they created their own private networks to avoid transit fees. They downgraded connections to local operators under conventional conditions, Connected Force release to other networks peering.

These companies have become a “category” not originally envisioned in the Internet interconnection model. they are no longer Internet users, “Special” Network Operators Neither an access network nor a national network, with content that gives it a clear dominant position in negotiations peering pact.

it is imperative to understand When the hyperscaler negotiates peering If you have a contract with a telecommunications carrier, it does not do so under the same principles. peering Contracts between operators are negotiatedOffering essential content and applications (for consumer demand) gives them bargaining power and is usually free. peering pact. They want the advantage of not having to pay to use transport services for traffic provided by carriers.

This doesn’t seem like a sign of balanced bargaining power between operators and large hyperscalersRather, failure to adapt to the evolution of the Internet could lead to an unsustainable situation dominated by a few companies that have managed to define the rules and conditions and capture most of the value generated. It shows the market distortion that there is. in the digital ecosystem.

Mixing the realities of networks in the interconnect market with the realities of large-scale hyperscalers has created a distorted market. The current definition of the Internet interconnect market is no longer adequate. CDNs When Cloud Hyperscaler infrastructure.

Given that this situation was completely unenvisioned in the original Internet model, it will fund the investment efforts operators face to deploy a nationwide backbone and access their networks. I think it’s time to consider whether this is the right foundation to do.

A key discussion on how to build a fairer and more sustainable digital ecosystem

The debate about the fair contribution of large Internet companies is about the need to revisit the assumptions agreed upon in the 1990s, and 30 years later the Internet still bears little resemblance to the Internet that was born in the 1990s. applied to 1990s.

It is no surprise that the companies that have been the most supporters of these rules want to keep them in place in the age of Web 3.0, but to ensure a fairer and more balanced Internet ecosystem, these There is broad global consensus that the rules for A legitimate rebuttal to the telecom carrier’s claims should be based on data and facts from today’s Internet, not from the Internet that no longer exists.

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