[Chapter-delegates] PRESS RELEASE: New Study On IXPs

Tue Apr 17 06:14:45 PDT 2012

Subject: [Staff] NEWS RELEASE: New Study Reveals How Internet Exchange
Points (IXPs) Spur Internet Growth in Emerging Markets

New Study Reveals How Internet Exchange Points (IXPs) Spur Internet Growth
in Emerging Markets 

Internet Society report demonstrates the significant cost and performance
gains in Kenya and Nigeria with IXP development

[Washington, D.C. USA and Geneva, Switzerland   17 April 2012]   The
Internet Society today published the results of a study that demonstrates
the far-reaching economic and societal benefits of establishing Internet
Exchange Points (or IXPs) in emerging markets. The study, commissioned by
the Internet Society and conducted by independent strategy and research
consultancy, Analysys Mason, examined the critical cost and performance
benefits of IXPs in Kenya and Nigeria   two sub-Saharan countries that have
been on the leading edge of Internet growth in Africa. 

Analogous with the role that international airports play in airline traffic,
IXPs serve as critical hubs for data traffic exchange in the global Internet
infrastructure. Over 350 IXPs around the world enable local Internet Service
Providers (ISPs) and Internet backbone carriers to efficiently and cost
effectively exchange Internet traffic between them. Many emerging markets do
not have well-established IXPs, forcing domestic Internet traffic onto
long-distance international links, resulting in significantly higher costs
and latency. 

The new study quantifies for the first time how IXPs enable Kenya and
Nigeria to save millions in telecommunications costs and raise additional
revenues in these countries while simultaneously speeding local data
exchange, and encouraging the development of locally hosted content and
services. For example:

*The Kenya Internet Exchange Point (KIXP) has dramatically reduced latency
of local traffic, speeding data from 200-600ms to 2-10ms on average, while
saving local ISPs nearly US$1.5 million per year on international
connectivity charges. 

*In Nigeria, the Internet Exchange Point of Nigeria (IXPN) has experienced a
similar reduction in latency while currently saving operators over US$1
million in connectivity costs per year. 

*In Nigeria, the presence of the IXP has encouraged the repatriation of
financial platforms for online banking that were previously hosted overseas,
while in Kenya the  IXP has helped speed citizens  access to online tax and
customs services offered by the Kenya Revenue Authority. 

*The presence of effective IXPs induced Google to place a cache in both
countries in Spring 2011, which has significantly increased the amount of
locally distributed content (notably YouTube videos) at faster speeds.

*Improved access to local content has increased usage, helping to increase
the mobile data market by at least US$6 million per year in Kenya.

This study puts into clear context the commonly accepted but seldom
quantified proposition that IXPs are essential for any country aspiring to
tap into the global Internet economy,  said Karen Rose, senior director of
development strategy at the Internet Society.  Offering more than just cost
and performance benefits, well-run IXPs serve as a catalyst to dramatically
enrich a country s Internet ecosystem, opening a new world of possibilities
with comparably minimal investment. We hope that this study will help inform
the dialogue among government, business, and technology leaders of emerging
countries still struggling with cost and bandwidth issues to show them, in
no uncertain terms, the benefits IXPs can yield for developing the most
fertile ground possible for Internet growth. 

Michael Kende, Analysys Mason partner and lead author on the study, said,
Thanks to the leadership of the Internet Society, this is a unique study
that documents and quantifies the benefits of two growing and regionally
important IXPs in sub-Saharan Africa.  It demonstrates the central role
these IXPs have had in developing the Internet ecosystems in each country
and how they are paving the way for future growth, including for advanced
services such as cloud applications. 

Commenting on the study and the growth of the Internet in Africa, Fiona
Asonga, chief executive officer of the Telecommunications Services Providers
Association of Kenya (TESPOK), stated, "This year marks the 10th anniversary
of KIXP and we are proud to have contributed to the tremendous growth of the
Internet in Africa during that time. We are pleased that this independent
study illustrates the practical value that KIXP currently brings to its
members, as well as the important contributions it is making to the broader
Internet economy in Kenya."     

Muhammed Rudman, chief executive officer of the Internet Exchange Point of
Nigeria (IXPN), shared his thoughts on the future of the Internet in the
region.  He commented, "The mission of IXPN is to localize Internet traffic
and reduce routing costs, thereby improving the efficiency and effectiveness
of the Internet in Nigeria.  At the same time, our eyes are very much set
towards the future of the Internet in the region.  I believe we have only
scratched the surface of what IXPN will be able to do for the growth of the
Internet in Africa."

The study was conducted as part of the Internet Society s Interconnection
and Traffic Exchange Programme, which aims to foster robust, efficient, and
cost-effective Internet interconnection environments in emerging economies,
and in furtherance of the Internet Society s overall mission to promote the
open development, evolution, and use of the Internet for the benefit of all
people throughout the world. 

The full study is available for download at
http://www.internetsociety.org/ixpimpact 

About the Internet Society

The Internet Society is the trusted independent source for Internet
information and thought leadership from around the world. With its
principled vision and substantial technological foundation, the Internet
Society promotes open dialogue on Internet policy, technology and future
development among users, companies, governments, and other organizations.
Working with its members and Chapters around the world, the Internet Society
enables the continued evolution and growth of the Internet for everyone. For
more details, visit http://www.internetsociety.org 

Media Contact: Wende Cover, cover at isoc.org, +1-703-439-2773

About Analysys Mason (www.analysysmason.com) Analysys Mason is a global
consultancy and research company specializing in telecoms, media and
technology (TMT).  Our clients in the TMT sectors operate in dynamic markets
where change is constant. We help shape their understanding of the future so
they can thrive in these demanding conditions. To do that, our consultants
have developed rigorous methodologies that deliver real-world results for
clients around the world.

Media Contact: Gina Ghensi, press at analysysmason.com, +44-1223-460-600

Ted Mooney

Sr. Director, Membership & Services

The Internet Society

 <http://www.isoc.org> www.isoc.org

Direct Line: 703.439.2774

Cell:           301.980.6446

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