Establishing Sustainable Community-Driven Internet Exchange Points

Internet Exchange Points (IXPs) are vital to providing end users with faster and more affordable Internet. They create shorter, more direct routes for local Internet traffic, reducing the need for it to leave the country via expensive international links.

There are generally six different types of IXP models: member-operated, ISP association-operated, for-profit, academic/regulator-managed, informally managed, and ISP-operated. Each model offers distinct advantages and serves specific needs, from maximizing profit and expansion in commercial setups to supporting local development and resilience in community-driven frameworks.

Having at least one member-operated, also known as community-driven, IXP within a country ensures that the infrastructure development aligns with the community’s specific needs and goals rather than just commercial interests.

Last year, I conducted a comprehensive study exploring the unique challenges, effective operational strategies, and sustainable models of community-driven IXPs across the Asia-Pacific region to provide actionable insights and guidance to enhance their functionality and impact.

This post provides some of the highlights from the full report: Community-Driven IXPs

Organization Structure

Most feedback from the community-driven IXPs I interviewed suggested registering any new IXP as a nonprofit organization. This would communicate that it is not driven by commercial interest but by its members’ interests, with the goal of reducing the cost of their connectivity and improving their Internet latency.

As community-driven IXPs mature, they may consider establishing a board or committee. For example, the New Zealand Internet Exchange (NZIX) has appointed two committee members from IAA, which aids in operating and establishing the initial structure for a community-driven IXP.

Staffing

Most community-driven IXPs start on a volunteer basis. Some volunteers have industry experience, and some don’t. Some need to undergo training by other IXPs to familiarize themselves with the IXP’s operation.

Bangkok Neutral Internet eXchange (BKNIX) started with one engineer. Initially, the engineer wasn’t equipped with the knowledge to manage an IXP; he was sent for training and knowledge sharing. BKNIX now has a team of four, with two engineers running the day-to-day operation.

Policies

Ideally, to maximize network efficiency and reduce transit costs, all members of an IXP would adopt an Open Peering Policy, which encourages unrestricted interconnection among all participants. 

However, challenges arise when incumbent Internet Service Providers (ISPs) prefer not to engage in open peering. Instead, these ISPs might opt for a Selective Peering Policy to avoid conflicts of interest arising from existing business units within their company.

MYIX and HKIX do not enforce an Open Peering Policy upon entry. They recognize that encouraging a larger membership base, even with varying peering policies, ultimately contributes to the community’s growth and fosters better relationships among network operators. 

In Thailand, BKNIX exemplifies a different approach by practicing open peering for all joining members and positioning itself as a neutral and inclusive Internet exchange point. This openness is a key differentiator in a landscape where most ISPs typically establish IXPs primarily to serve their customers rather than foster broader network interconnectivity.

Financing

Unlike commercially run IXPs, community-driven IXPs often have limited access to capital and business development resources. They operate on a cost-recovery basis, with any surplus typically reinvested in the IXP or its associated community. 

Hong Kong Internet Exchange (HKIX), the Internet Association of Australia (IAA), and Malaysia Internet Exchange (MyIX) are models that initially offered free services but now use a sustainable fee-based model to manage growing bandwidth demands and operational costs.

Within approximately 2-3 years of implementing port charges, HKIX achieved financial sustainability, effectively covering its operational and upgrade costs through these fees. 

Ultimately, community-driven IXPs must focus on demonstrating value to ensure members are willing to transition to a paid model, thereby securing the IXP’s future financial stability.

Value-added Services

Some value-added services that IXPs can offer their members are DNS, cached server, NTP, cloud connect, and DDoS mitigation services. IAA provides members with cloud connections to connect to content delivery networks or cloud service providers. 

In some cases, these services are directly offered by members who have specific expertise in the area. This collaborative approach not only diversifies the services offered but also leverages the unique skills within the community.  

Effective member engagement and support also allow IXPs to organize seminars, training sessions, conferences, and meetups, which serve as educational opportunities and facilitate networking among members. This will create an IXP’s ‘stickiness.’  

A Sustainable Peering and Interconnection Ecosystem Benefits Everyone 

Ultimately, community-run IXPs should consider learning from other IXPs, including those operated commercially. Observing and adapting successful strategies can provide valuable insights and innovative service delivery and enhancement approaches. 

This continuous learning and adaptation will improve the services offered and ensure that the IXP remains competitive and relevant in the evolving digital landscape.

Paul Ooi is a consultant, community builder, and trainer.

The views expressed by the authors of this blog are their own and do not necessarily reflect the views of the Internet Society.

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Photo from the 26th Asia Pacific Internet Exchange meeting (APIX#26) via LinkedIn