Level 3 Communications and XO Communications announced a long-term, settlement-free, Internet traffic exchange agreement based on a bit-mile balance approach, which measures both the volume of traffic exchanged and the distance over which that traffic is carried by each network.
The companies said their new peering agreement is equitable and settlement-free because both networks carry approximately the same bit-miles of data. Both carriers see a balanced cost burden across each network. The peering agreement also contains provisions to add capacity and establish new interconnection locations between the two networks to stay ahead of growing traffic demand.
“Level 3’s primary focus is on providing quality service for Internet consumers,” said Jack Waters, Level 3’s chief technology officer. “We look forward to working with our peering partners to drive broader adoption of this bit-mile model to ensure fair and equitable interconnection. We are also working with providers of traffic-flow monitoring systems to make the measurement process straightforward and consistent across the industry.”
“XO Communications supports equitable settlement-free peering to ensure fair and unconstrained interconnection,” said Randy Nicklas, senior vice president and chief technology officer, at XO Communications. “This agreement will ensure a balanced backbone cost burden between our two networks as we continue to grow while providing high-quality service for our respective customers.”
