?url_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Adc&rft.title=Framing+the+Value+of+Internet+Exchange+Participation&rft.creator=Sowell%2C+Jesse&rft.description=Internet+eXchanges+(IXes)+are+developed+to+localize+traffic%2C+reduce+connectivity+costs%2C+and+reduce+latency.+Historically%2C%0D%0Atransit+savings+were+sufficiently+substantive+to+justify+investment+in+IX+interconnection+strategies%2C+overshadowing+other+benefits+enjoyed%0D%0Aby+IX+participants.+Recent+work+argues+these+basic+IX+effects+facilitate+regional+economic+development.+In+developed+regions%2C+as%0D%0Atransit+prices+converge+with+comparable+per+volume+price+on+Internet+exchanges%2C+a+new+question+emerges%3A+given+this+convergence%2C%0D%0Awhat+additional+value+and+benefits+does+the+IX+provide+existing+and+would-be+participants%3F+Governance+and+organization+studies+of%0D%0AIXes+provide+some+of+the+nuance+necessary+to+answer+this+question.+Based+on+interviews+with+IX+managers+and+participants%2C+there%0D%0Ais+value+in+a+more+fluid+market+of+interconnection+options+that+facilitate+investment+deferral+and+greater+control+over+the+repurposing%0D%0Aof+interconnection+resources.+Interconnection+is+presented+in+terms+of+platforms+and+how+they+implement+interconnection+options%2C%0D%0Ahighlighting+how+the+mechanics+of+these+implementation+frame+network+actors%E2%80%99+decisions+regarding+how+to+maximize+access+to+and%0D%0Ainvestments+in+interconnection+markets.%0D%0ASemi-structured+interviews+of+a+wide+range+of+network+operators+and+IX+operators+over+the+last+year+and+a+half+imply+decision%0D%0Aheuristics+for+optimizing+value+and+network+resilience%3A+selectively+increasing+redundancy%2C+increasing+unique+interconnection+partners%2C%0D%0Aand+reducing+switching+costs%2C+are+among+the+most+common+criteria.+This+work+distills+decision+heuristics+identified+thus+far+into+a%0D%0Apartially+parameterized+model+of+interconnection+decision+making+across+platforms+that+serve+as+markets+for+interconnection+options.%0D%0AUnpacking+decision+heuristics+contributes+to+more+precisely+explaining+the+mix+of+interconnection+options+available+to+actors+that+both%0D%0Aderive+value+from+network-+and+application-level+services+but+who+also+influence+infrastructure+investment+and+strategy+decisions%0D%0Athrough+the+options+they+select.+This+work+demonstrates+how+IX-platforms+facilitate+greater+access+to+interconnection+options+and%0D%0Adefer+bargaining+and+measurement+costs+necessary+for+more+specific+asset+investments.+IX-enabled+interconnection+contributes+to%0D%0Athe+%E2%80%9Cflattening%E2%80%9D+of+the+Internet+by+providing+an+investment+path+to+more+sophisticated+bundles+of+(flatter)+bilateral+relations+rather+than%0D%0Aparticipating+solely+in+the+transit+hierarchy.+The+model+developed+here+provides+a+clear+formalism+for+comparing+these.%0D%0ATwo+classes+of+parameters+are+missing%3A+connectivity+cost+information+and+parameters+representing+actor-specific+valuations+of+system%0D%0Aproperties+such+as+redundancy+or+latency.+A+key+contribution+is+to+understand+the+options+available+by+carefully+specifying+the%0D%0Aparameter+space+based+on+empirical+observation%3A+what+are+the+variables+and+how+are+they+conceptually+related%3F+This+work+unpacks%0D%0Athe+mechanisms+implementing+two+common+types+of+interconnection+option+and+concludes+with+working+hypotheses+that+will+be+further%0D%0Arefined+and+tested+in+ongoing+work.+The+next+stage+of+this+work+focuses+on+identifying+appropriate+operationalizations%2C+data+sources%0D%0Afor+cost%2C+and+strategies+for+comparing+(validating)+theoretical+valuations+based+on+empirical+operationalizations+of+variables+such+as%0D%0Aredundancy.%0D%0AA+social+science+approach+to+indicator+development+is+applied+to+frame+heuristics+as+background+concepts+that+are+refined+into%0D%0Aspecifications+of+incentives%2C+relationships%2C+and+potential+indicators.+Variables+specified+here+represent+possible+systematizations+of%0D%0Abackground+concepts+elicited+from+interviews.+Neither+the+specification+nor+the+relationships+are+presented+as+being+writ+in+stone%E2%80%94%0D%0Arather%2C+they+are+a+part+of+an+ongoing+project+to+elicit+empirical+trends+in+the+interconnection+industry.+The+variety+of+network+actors%0D%0Athat+engage+with+IXes%2C+their+value+propositions%2C+and+the+means+by+which+they+connect+to+IX+platforms+provide+insight+into+which%0D%0Ainterconnection+options+are+appealing+to+which+types+of+actors+as+well+as+common+trade-offs.+Qualitatively%2C+this+gives+insight+into+which%0D%0Atypes+of+actors+are+willing+to+invest+in+which+mixes+of+infrastructure+types+and+topologies.+By+highlighting+trade-off+conditions+in+the%0D%0Ademand+for+interconnection%2C+this+specification+provides+direction+for+further+identification+of+interconnection+costs+and+the+constraints+by%0D%0Athose+making+investment+decisions.%0D%0AThe+framework+offers+a+number+of+contributions.+Different+interconnection+modes+are+conceptualizes+independently%2C+but+the+framework%0D%0Asubsequently+highlights+mutual+dependence+and+benefits.+Working+hypotheses+argue+that+different+platforms+structure+and+mediate%0D%0Ainterconnection+option+implementations+(transport%2C+colocation%2C+IX)%2C+how+they+are+interleaved+with+one+another+in+practice%2C+and+offer+a%0D%0Afirst+pass+at+identifying+and+realizing+critical+paths+through+investment+decisions+as+they+grow+and+develop+specific+relationships+(and%0D%0Aasset+investments)+beyond+simple+transit.+Building+on+the+notion+of+a+real+option%2C+flexibility+in+general+purpose+resources+(IX-mediated%0D%0Ainterconnection)+facilitates+staged%2C+dynamic+investment+decisions+and+learning+effects.&rft.publisher=SSRN&rft.date=2013-09-22&rft.type=Proceedings+paper&rft.language=eng&rft.source=+++++In%3A++TPRC+41%3A+The+41st+Research+Conference+on+Communication%2C+Information+and+Internet+Policy.++++SSRN%3A+Fairfax%2C+VA%2C+USA.+(2013)+++++&rft.format=text&rft.identifier=https%3A%2F%2Fdiscovery.ucl.ac.uk%2Fid%2Feprint%2F10183567%2F1%2FSSRN-id2241841.pdf&rft.identifier=https%3A%2F%2Fdiscovery.ucl.ac.uk%2Fid%2Feprint%2F10183567%2F&rft.rights=open