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IP Transit Provider Level 3 Signs Bit-Mile Balance-Based Peering Agreement with XO

Level 3 Communications (News - Alert), a provider of IP transit  and communications services, has signed a long-term settlement-free Internet traffic exchange agreement – also known as peering agreement – with XO Communications (News - Alert), a provider of Voice over Internet Protocol (VoIP)-based communications solutions.

The peering agreement, based on the bit-mile balance approach, measures the volume of traffic exchanged and the distance over which that traffic is carried by each network. As a result, customers on each of the Internet service providers' networks can continue to exchange data with customers on the other service provider's network efficiently and cost-effectively.

Since both networks carry approximately the same bit-miles of data, the model promotes efficient, high-quality service for customers. It also ensures a balanced cost burden across each network. The bit-mile arrangement ensures that customer enjoys the best Internet experience while doing the interconnection in a way that is equitable to both Level 3 and XO.

Jack Waters, Level 3's chief technology officer, said the company is looking to work with its peering partners to drive broader adoption of this bit-mile model to ensure fair and equitable interconnection. “We are also working with providers of traffic-flow monitoring systems to make the measurement process straightforward and consistent across the industry,” Waters added.

Through this peering agreement, the companies have also decided to add capacity and establish new interconnection locations between the two networks to stay ahead of growing traffic demand. This approach offers flexibility to each network while improving performance and reliability for customers, according to company officials.

"XO Communications supports equitable settlement-free peering to ensure fair and unconstrained interconnection," said Randy Nicklas, senior vice president and chief technology officer at XO Communications, in a statement. "This agreement will ensure a balanced backbone cost burden between our two networks as we continue to grow while providing high-quality service for our respective customers."

Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO Miami 2013, Jan 29- Feb. 1 in Miami, Florida.  Stay in touch with everything happening at ITEXPO (News - Alert). Follow us on Twitter.

Edited by Rachel Ramsey

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