Internet Exchange Point in Nicaragua Reservation for changes after recieving the ISP survey from Nicaragua, interviews, further analysis etc

Buisiness case for the ISPs NICIX organisation

Buisiness case for the ISPs NICIX organisation

Internet Market in Nicaragua is growing fast Fast growth, The internet market has increased with 212% from year 2000 to Growth potential, only about (2%) of the population is connected to internet today If the growth is sustainable it will reach over users year The number of ISPs has increased to 11 year 2002 CAGR=212% CAGR=191% Number of Internet users in Nicaragua Number of ISPs in Nicaragua Note: The number of users within a country that access the Internet may include users who access the Internet at least several times a week to those who access it only once within a period of several months. Source: Interview with Swedish Trade Council and Foreign Ministry

IXP enables improved quality with lower cost Connect local traffic directly -Speed up local traffic -Increase bandwidth for international traffic Gathers international traffic -Decreases unnecessary international traffic -Economy of scale, when negotiating the international tariff  Improved Performance and reduce delays  Lower costs  Enabling new services and revenue opportunities such as -Streaming Video/Audio -Video-conferencing -Telemedicine -E-Commerce -E-Learning -E-Governance -E-Banking Source: Interview with Americo Muchanga and (spanish guy sitting in the same room) Team amalysis

IXP connection is crucial for a ISPs survival - Kenya Case as illustration improves the performance  reduce delays and thereby improves the performance. No need to travel to the backbones in USA who has been referred to as the “backbone” of the Internet or As more European countries established IXPs, some countries began using Europe for their backbone connectivity.. ISP A ISP B ms 5-20ms USA  In this case a IXP connection reduces the re to 20 ms or 1% of the original travel time Note: The number of users within a country that access the Internet may include users who access the Internet at least several times a week to those who access it only once within a period of several months. Source:

IXP connection is crucial for a ISPs survival - Kenya Case as illustration reduced expenses IXP connection reduced expenses, no need to use expensive upstream provider to exchange local traffic over a trans continental link. In this case the casts are reduced to about 10 % of the original cost. Bw InternationalLocal 64k$1,687$ k$2,386$ k$3,375$ k$4,773$535 1MB$6,750$757 Source: KIX Telkom Kenya Bandwidth Tariffs Dec. 2001

IXP connection is crucial for a ISPs survival - Kenya Case as illustration Nurture local commerce  Nurture local commerce, Independent Research shows that Africa loses over US$400 Million/yr for traffic exchange via other continents  A strong, domestic Internet industry creates high-paying knowledge worker positions  Domestic traffic exchange reduces the importation of foreign content and cultural values, in favor of domestic content authoring and publishing Source: KIX

IXP connection is crucial for a ISPs survival - Kenya Case as illustration Summary  reduce delays and thereby improves the performance. a IXP 0connection can reduce delays to 1% of the original travel time.  IXP connection can reduced expenses to about 10 % of the original cost.  The improved quality and the cost reduction enables new services and revenue opportunities such as –Streaming Video/Audio –Video-conferencing –Telemedicine –E-Commerce –E-Learning –E-Governance –E-Banking  Nurture local commerce and culture, Independent Research shows that Africa lost over US$400 Million/yr for traffic exchange via other continents  The more ISPs interconnect, the more value each individual ISP can offer it’s customers! Source: KIX

Buisiness case for the ISPs NICIX organisation

Building NICIX requires a lot of none-technical work  A Peering/IX initiative involves 10% technical work. - Buying equipment - Setting up the network -Technical maintenance  The remaining 90% is socio-political engineering. - Cooperation between the ISPs Organisation structure Location Ownership Definition of internal peering policy framework - Official regulatory support Source: Material from Southern African Internet Forum, 13th April 2003

NICIX is administrated by AIN - the ISP association in Nicaragua Symbols ISPs that has accepted the connection to the NICIX  AIN is a ISP association in Nicaragua  It has 11 ISP members  6 of them have accepted the connection to NICIX Source: Principal Interview with team members

NICIX-organisation is headed by the ISP association in Nicaragua BOARD of AIN The ISP association of Nicaragua Manager of NICIX ISP  NICX managed by a manager directly under the board of AIN Source:Team analysis

Budget draft  Running costs - rent ~ 100 USD/month - Electricity ~ 100 USD/month - Telphone ~ 50 USD/month - Security guard ~ 75 USD/month - Depriatiation  Upgrade costs New equipment Source: interview with Americo Muchanga Team analysis and discussion