Btw, Telkom are apparently asking IS to pay R3m / month to upgrade the peering link, according to another IOZ post
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As I have always understood it, international standards are that when a big ISP (like IS) has lots of content (eg web services hosted by their clients eg the banks), other smaller ISP's (like Telkom/SAIX) come to a peering arrangement with them.
I understand that the way pricing is settled is to examine the traffic between them.
If the traffic is even - ie both ISP's have a similar volume of users accessing content on the other ISP's network, then neither levies a charge on the other, and they share the cost of the link, which is then provisioned to eliminate any congestion.
If most of the traffic is coming from one of the ISP's user's accessing information on the other ISP's content, then a charge is levied on the ISP with the paying users who need access to the content. There are conventions on how the charge is arrived at and it is based on the balance of use. Once again, the convention is that the peering link is always provisioned so that there is no congestion, as it is in the interest of the paying partner to ensure that their users have free access to all content.
In this case, there are lots of Telkom/SAIX paying clients, and Telkom/SAIX, to improve their service to these clients, wants to give them fast access to the IS content.
For years IS has tuned a blind eye to the fact that they could be charging Telkom/SAIX for providing their clients access to the IS content. There is little if any content on the Telkom/SAIX side that IS clients need to access, so the benefit is very much one-sided - in favour of the clients that Telkom collects fees from.
But now Telkom/SAIX is not only refusing to share the cost, they are apparently demanding that IS pays THEM for peering! The peering link is currently heavily congested and Telkom not only refuses to upgrade it, but intend to close it down.
This will mean that all traffic between SAIX and IS will be routed Internationally, onto the Internet at large, and back to South Africa. It's ludicrous, but that's Telkom.
I would think that if both parties are ISPA members (not sure about SAIX), ISPA should be able to censure Telkom in some way, even if it is by making a public statement that ISPA regrets Telkom's anti-social behaviour, and that it believes Telkom is in the wrong.
Hopefully if the peering link is closed, there will be enough of a public outcry from Telkom Internet and SAIX users to pressurise Telkom into reinstating it.
The trouble is that it will probably damage IS as much as Telkom - not only will the public be confused and possibly view it as a spat between two unbending peers (bad PR for IS and unfair in the extreme given the circumstances and history), but large IS clients (once again eg banks) may start taking their own peering bandwidth with Telkom/SAIX at a cost and downgrade their IS bandwidth.
(By the way, Telkom's justification for shutting down the peering point is that traffic from the SAIX DSL user accounts that IS has sold on their behalf is coming across the peering point to IS to access content, and through some twisted logic, believe that this is IS' responsibility to pay for!)