Level 3, XO Do Peering Deal

On the heels of a similar agreement with tw telecom, Level 3 Communications has entered into a long-term, settlement Internet traffic exchange deal with XO Communications.

The peering agreement is designed to ensure that customers on each of the two Internet service providers’ networks can continue to exchange data with customers on the other service provider’s network efficiently and cost-effectively. It’s based on the bit-mile peering approach, which measures both the volume of traffic exchanged and the distance over which that traffic is carried by each network.

In order to keep the relationship equitable and settlement-free, both networks will carry approximately the same bit-miles of data, a model that they say promotes efficient, high-quality service for customers, while ensuring a balanced cost burden across each network.

"We look forward to working with our peering partners to drive broader adoption of this bit-mile model to ensure fair and equitable interconnection," said Jack Waters, Level 3’s chief technology officer. "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. "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."

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. This approach offers flexibility to each network while improving performance and reliability for customers, the companies said.

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