IP-Converge nixes NTC's proposed peering policy

MANILA, Philippines - IP-Converge Data Center, the country’s first and only publicly listed Internet data center and cloud services provider, has warned that requiring all Internet service providers (ISPs) to connect to a single Internet exchange point (IXP) is likely to compromise business strategies that aim to deliver the best quality and most affordable network service to the Filipino user.

IP-Converge recently submitted a position paper to the National Telecommunications Commission (NTC), in response to a draft memorandum circular creating the Guidelines on Domestic IP Peering.

The draft memo mandates all ISPs in the country with a direct connection to a foreign ISP, to connect to the IXP operated by the Advance Science and Technology Institute under the Department of Science and Technology (DOST-ASTI). As a provider of dedicated Internet services, IP-Converge is among the country’s many ISPs that stand to be affected by the memo once passed. 

Recognizing the NTC’s initiative of promoting affordable Internet rates and efficient Internet services to the public, IP-Converge nevertheless supports the memo’s main objectives of ensuring efficient use of international bandwidth; reducing domestic Internet rates; and encouraging offshore content and application developers to establish presence in the country.

IP-Converge said while ISPs can surely provide better quality Internet services by connecting to an IXP, limiting the options for the latter also limits the provider’s capability to enhance service quality for its customers.

It pointed out that ISPs and telecommunications carriers must be allowed to make business decisions such as selecting an IXP to connect to, or establishing their own IXP, on the basis of what will benefit their customers and support their respective business strategies.

It stressed that it is also imperative to qualify and consider the legitimacy of an IXP, which must be an “open” platform that facilitates the exchange of traffic between ISPs regardless of geographical location, and must allow members to engage in bilateral and multilateral peering agreements with other members.

An IXP is defined as a physical network infrastructure operated by a single entity with the purpose of facilitating the exchange of Internet traffic between three or more autonomous systems.

IP-Converge further noted that “IXPs are essential to delivering quality interconnection between networks and reducing IP bandwidth cost”, and “need to be supported and accepted by key operators in the carrier, content and data center space in the country”, through government regulations that promote active member participation.

In advocating competitiveness in the industry, IP-Converge urged the NTC to open the playing field and allow other IXPs to operate and establish strategic alliances with other carriers, ISPs and content operators. This is a necessary step to achieve improved quality of Internet services in the country, to the benefit of millions of local Internet users, it added..