[ih] History of Tier 1 Networks

Leonard Kleinrock lk at cs.ucla.edu
Sun Apr 26 22:26:43 PDT 2026


Here is a bit to AT&Ts data networking offerings as I remember it.  Early on, AT&T argued that packet switching would not work, and even if it did, they wanted nothing to do with it (notwithstanding the fact that their scientists did do some worthwhile mathematical modeling of it).  We thought they were foolish in their decision, but I realize now that their decision made sense to them at the time since there was no business model to support what would have been a billion dollar investment – there was no significant demand for data communications at that time.  We see now that made short term  sense, but was a long term mistake for them. 

Here is a short history of AT&T’s early attempts at data networking.  In the mid-late 1970’s AT&T talked about the Bell Packet Switching Service (BPSS) in some filings and technical discussions, but it faded out in the late 1970’s.  In its place, they finally announced a service they called Advanced Communication Service (ACS) that would come out in 1979, but it, too, was never deployed.  Finally, in 1983 (14 years after the launch of the Arpanet that demonstrated the viability of packet switching), AT&T finally launched their premier data networking service called Net 1000! However, it was too little too late and worse, it offered it as a full service offering that not only provided data transmission, but also offered storage and computation to the Fortune 500 companies, two things that those companies certainly not need - they closed down Net 1000 in 1984 at a loss in the range of $1 billion!  

Len

> On Apr 26, 2026, at 5:43 PM, John Day via Internet-history <internet-history at elists.isoc.org> wrote:
> 
> I would agree. In the US, AT&T showed little interest in packet switching until very late in the game. However, in Europe the story was quite different. The UK post office was taking an interest in packet switching in the late 60s and moving to protect its monopoly from then on. Likewise, the French PTT was actively pursuing packet switching in the early 70s. All of the European PTTs were running interference on the creation of EIN to the point it hardly got off the ground.
> 
> Closer to home, Bell Canada premiered DataPac at a big conference in Toronto in 1975 (or was it 76). 
> 
> I have remarked here other times about how in the early 70s, we were doing ‘illegal’ transfers from CERN to the Rutherford High Energy Lab in Cambridge, making tapes at Illinois to be carried up to Argonne and later FermiLab. Where there is a will there is a way.
> 
> The US was lucky that AT&T didn’t get interested sooner. ;-) Others had a lot more trouble.
> 
> John
> 
>> On Apr 26, 2026, at 20:01, Miles Fidelman via Internet-history <internet-history at elists.isoc.org <mailto:internet-history at elists.isoc.org>> wrote:
>> 
>> You might notice that, for the most part, are traditional carriers - all of which, at one point, had monopolies on long-haul communications.  First, the packet nets leased lines from them, then they started offering their own data services.
>> 
>> In the US, the ARPANET and Defense Data Network were mostly supported by AT&T Long Lines, and then the NSFnet backbone was provided by MCI.  In Europe the first backbones were government monopolies.  Note that the AT&T breakup came in 1984, and the NSFnet came online in 1985.
>> 
>> And the rest is history.
>> 
>> Miles Fidelman
>> 
>> 
>> ________________________________
>> From: Internet-history <internet-history-bounces at elists.isoc.org> on behalf of Brian E Carpenter via Internet-history <internet-history at elists.isoc.org>
>> Sent: Sunday, April 26, 2026 7:43 PM
>> To: James Bensley <lists+internethistory at bensley.me>; internet-history at elists.isoc.org <internet-history at elists.isoc.org>
>> Subject: Re: [ih] History of Tier 1 Networks
>> 
>> James,
>> 
>>> The main question I want to understand is how the current set of Tier 1 networks came to be Tier 1 networks (why these networks and not a different set of networks?).
>> 
>> I suspect that the answer will turn out to  7-be the same as for any other industry since the Industrial Revolution: some combination of effective entrepreneurship and pure chance. Did a particular operator (a) understand the strategic value of being a transit provider for no *direct* financial reward and (b) have good enough technical staff and (c) have a bit of luck? Not to mention freedom from political interference.
>> 
>> But don't neglect the role of IXPs in this. Without them, nothing would work. How and why did they come into existence?
>> 
>> I hope you succeed, because these are very interesting questions (and they go to the heart of why the Internet succeeded and OSI didn't, IMNSHO).
>> 
>> Regards/Ngā mihi
>>   Brian Carpenter
>> 
>> On 24-Apr-26 19:47, James Bensley via Internet-history wrote:
>>> Hi All,
>>> 
>>> I am wondering if there are people on this list that can help with a more recent part of Internet history. I've been looking into the history of what we today call the Tier 1 networks [1] (global IP carriers).
>>> 
>>> The main question I want to understand is how the current set of Tier 1 networks came to be Tier 1 networks (why these networks and not a different set of networks?).
>>> 
>>> To clarify my query; below is the list of Tier 1 networks which I think it could be said are derived from state funded telcos within a certain country:
>>> 
>>> - AS701 Verizon / UUNET (from the USA via Bell Atlantic)
>>> - AS1299 Telia / Arelion (from Sweden)
>>> - AS2914 NTT (from Japan)
>>> - AS3320 Deutsche Telekom (from Germany)
>>> - AS5511 France Telecom / Orange (from France)
>>> - AS6453 Telstra (from Australia)
>>> - AS6762 Telecom Italia Sparkle (from Italy)
>>> - AS6830 Liberty Global (comprised from the M&A of many European incumbents)
>>> - AS7018 AT&T (from the USA)
>>> - AS12956 Telxius / o2 (from Spain)
>>> 
>>> I think the following Tier 1s have their roots as being either fully privately funded or only minorly state funded (sometimes indirectly through M&As):
>>> 
>>> - AS174 Cogent
>>> - AS3257 GTT
>>> - AS3491 PCCW / Console Connect
>>> - AS3356 Lumen / Colt
>>> - AS6461 Zayo
>>> - AS6939 Hurricane Electric
>>> 
>>> For these network with fully or mostly commercial origins, going on become major global players is nothing out of the ordinary in a capitalistic world, they are "successful". But for the networks which originated as national incumbent telcos, this is the area I am most interested in.
>>> 
>>> I am told that some expanded into global connectivity due to a desire to provide better connectivity for their home market. What puzzles me is why some of these state funded telcos did this and some didn't.
>>> 
>>> I'm told that NTT is one such example, which is now one of the biggest global IP carriers (Nippon Telegraph and Telephone wanted to improve connectivity and prices for the Japanese market), whereas SingTel (from Singapore) didn't; their monopoly in Singapore is still very strong today, but they've mainly staid within their “region”. BT (from the UK) is another example. BT didn't go on to become a Tier 1 whereas most of it's Europe neighbours did.
>>> 
>>> I'm guessing that the peering arrangements that lead to establishment of the Tier 1 tier where solidifying around the early 90's. At this time BT was operating Tymnet which later morphed in BT Global Services. I think they were very welled placed to enter into this realm, but didn't for some reason.
>>> 
>>> I'd be very grateful if anyone could share some history on why some of these networks which originated from state owned telcos, decided that extensive global connectivity was a priority for them (or why is wasn't), and why they expanded so far out of their original remit (or didn't).
>>> 
>>> With kind regards,
>>> James.
>>> 
>>> [1] I'm considering this list of network (I know that other networks existed in the past which no longer exist, so the list is changing over the years, but this is the list I'm looking at right now): https://tier1-analysis.53bits.co.uk/part1/tier1_asns.html#list-of-tier-1-networks
>>> 
>>> 
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