[ih] History of the Economics of the Internet?

[Brian E Carpenter]

> My impression is that for Internet interconnections, if the two parties 
> are of comparable size they peer, or if one is bigger, the smaller pays 
> the larger for transit.  I've also heard of paid peering, somewhere in 
> between but not common.

And they are always confidential bilateral agreements, not multilateral,
because otherwise they would be an illegal cartel.

Also, "peering" and "transit" are economic terms, not technical ones.
"BGP peering" is a technical term, applicable to both economic peering and
transit.

Regards/Ngā mihi
    Brian

On 31-Jul-26 11:49, John R. Levine via Internet-history wrote:
> On Thu, 30 Jul 2026, Scott O. Bradner wrote:
>> it also touches on what the legacy telcos expect as to settlements etc
> 
> Right, but that's telephone call settlements, not Internet data
> settlements.  Ineffiecnet little telcos like mine are sad not to get
> settlements.  I hear there are (maybe were) tiny phone co-ops in the
> midwest where not only is your phone line free, you get regular dividends
> paid from the settlements.
> 
> My impression is that for Internet interconnections, if the two parties
> are of comparable size they peer, or if one is bigger, the smaller pays
> the larger for transit.  I've also heard of paid peering, somewhere in
> between but not common.
> 
> R's,
> John
> 
>>> On Jul 30, 2026, at 4:48 PM, John Levine <johnl at iecc.com> wrote:
>>>
>>> It appears that Scott Bradner via Internet-history <sob at sobco.com> said:
>>>> this covers some of the current discussions over the Internet's economic model
>>>> within the regulatory world (at least in the US)
>>>>
>>>> https://isoclive.substack.com/p/fcc-ip-transition
>>>
>>> Not really. It's about moving the telephone system from legacy SS7 to IP
>>> signalling, switching, and transport. It's the same technology as the Internet
>>> but it's separate dedicated IP networks with privately negotiated
>>> interconnections and occasionally still per-minute settlements.
>>>
>>> There is also telephony that runs "over the top" of the public Internet, but
>>> that's something else. That's VoIP, Voice over IP, while the former is VuIP,
>>> Voice using IP. There are plenty of vendors that provide VoIP to VuIP gateways
>>> so your VoIP terminals can make and receive calls to or from real phone numbers.