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<https://discovery.ucl.ac.uk/id/eprint/10183567> <http://purl.org/dc/terms/title> "Framing the Value of Internet Exchange Participation"^^<http://www.w3.org/2001/XMLSchema#string> .
<https://discovery.ucl.ac.uk/id/eprint/10183567> <http://purl.org/ontology/bibo/abstract> "Internet eXchanges (IXes) are developed to localize traffic, reduce connectivity costs, and reduce latency. Historically,\r\ntransit savings were sufficiently substantive to justify investment in IX interconnection strategies, overshadowing other benefits enjoyed\r\nby IX participants. Recent work argues these basic IX effects facilitate regional economic development. In developed regions, as\r\ntransit prices converge with comparable per volume price on Internet exchanges, a new question emerges: given this convergence,\r\nwhat additional value and benefits does the IX provide existing and would-be participants? Governance and organization studies of\r\nIXes provide some of the nuance necessary to answer this question. Based on interviews with IX managers and participants, there\r\nis value in a more fluid market of interconnection options that facilitate investment deferral and greater control over the repurposing\r\nof interconnection resources. Interconnection is presented in terms of platforms and how they implement interconnection options,\r\nhighlighting how the mechanics of these implementation frame network actors’ decisions regarding how to maximize access to and\r\ninvestments in interconnection markets.\r\nSemi-structured interviews of a wide range of network operators and IX operators over the last year and a half imply decision\r\nheuristics for optimizing value and network resilience: selectively increasing redundancy, increasing unique interconnection partners,\r\nand reducing switching costs, are among the most common criteria. This work distills decision heuristics identified thus far into a\r\npartially parameterized model of interconnection decision making across platforms that serve as markets for interconnection options.\r\nUnpacking decision heuristics contributes to more precisely explaining the mix of interconnection options available to actors that both\r\nderive value from network- and application-level services but who also influence infrastructure investment and strategy decisions\r\nthrough the options they select. This work demonstrates how IX-platforms facilitate greater access to interconnection options and\r\ndefer bargaining and measurement costs necessary for more specific asset investments. IX-enabled interconnection contributes to\r\nthe “flattening” of the Internet by providing an investment path to more sophisticated bundles of (flatter) bilateral relations rather than\r\nparticipating solely in the transit hierarchy. The model developed here provides a clear formalism for comparing these.\r\nTwo classes of parameters are missing: connectivity cost information and parameters representing actor-specific valuations of system\r\nproperties such as redundancy or latency. A key contribution is to understand the options available by carefully specifying the\r\nparameter space based on empirical observation: what are the variables and how are they conceptually related? This work unpacks\r\nthe mechanisms implementing two common types of interconnection option and concludes with working hypotheses that will be further\r\nrefined and tested in ongoing work. The next stage of this work focuses on identifying appropriate operationalizations, data sources\r\nfor cost, and strategies for comparing (validating) theoretical valuations based on empirical operationalizations of variables such as\r\nredundancy.\r\nA social science approach to indicator development is applied to frame heuristics as background concepts that are refined into\r\nspecifications of incentives, relationships, and potential indicators. Variables specified here represent possible systematizations of\r\nbackground concepts elicited from interviews. Neither the specification nor the relationships are presented as being writ in stone—\r\nrather, they are a part of an ongoing project to elicit empirical trends in the interconnection industry. The variety of network actors\r\nthat engage with IXes, their value propositions, and the means by which they connect to IX platforms provide insight into which\r\ninterconnection options are appealing to which types of actors as well as common trade-offs. Qualitatively, this gives insight into which\r\ntypes of actors are willing to invest in which mixes of infrastructure types and topologies. By highlighting trade-off conditions in the\r\ndemand for interconnection, this specification provides direction for further identification of interconnection costs and the constraints by\r\nthose making investment decisions.\r\nThe framework offers a number of contributions. Different interconnection modes are conceptualizes independently, but the framework\r\nsubsequently highlights mutual dependence and benefits. Working hypotheses argue that different platforms structure and mediate\r\ninterconnection option implementations (transport, colocation, IX), how they are interleaved with one another in practice, and offer a\r\nfirst pass at identifying and realizing critical paths through investment decisions as they grow and develop specific relationships (and\r\nasset investments) beyond simple transit. Building on the notion of a real option, flexibility in general purpose resources (IX-mediated\r\ninterconnection) facilitates staged, dynamic investment decisions and learning effects."^^<http://www.w3.org/2001/XMLSchema#string> .
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