[Once again the world's R&E networks have been at the forefront of this revolution. Most R&E networks around the world arrange for direct peering with major content providers and Tier 2 networks. This saves anywhere from 40-50% of Internet transit costs for their customers and is also a major, if not primary source of income for most R&E networks. Some R&E networks are now talking about exchanging their respective peering routes to create a global Tier 1 peering consortium which will further reduce costs for their connected institutions. Of course, this is only possible if you have an extensive optical backbone with lots of capacity to add wavelengths etc - another example of how the optical revolution is changing the market dynamics of the Internet. CANARIE's UCLP was originally designed for this scenario to enable R&E networks and institutions to do low cost remote peering. From a posting on Dewayne Hendricks list -- BSA]
From: (Dewayne Hendricks)
Study: Most Internet traffic bypasses tier-one networks
Telephony Online
By Ed Gubbins
The majority of Internet traffic now goes through direct peers and
does not flow through incumbent tier-one telecom networks, according
to a recent report from Arbor Networks, which sells network management
and security products.
Tier-one incumbents were once the chief providers of connectivity
between content companies like Google and local or regional broadband
providers like Comcast. But over time, Google and other content
providers have built out their own infrastructure, connecting more
directly to end users and bypassing those tier-one intermediaries.
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