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2

Workshop on the Development of

IXPs in the Arab Region, April 5-6

What is the Internet Society?

The Internet Society (ISOC) is a cause-based organization that works with governments, industries, and others to ensure the technologies and policies that helped develop and evolve the Internet will continue into the future.

Our programs cultivate an Internet that is open to everyone, everywhere and aim to ensure that it will continue to be a tool for creativity, innovation, and economic growth.

MISSION: To promote the open development, evolution, and use of the Internet for the benefit of all people throughout the world.

VISION: The Internet is for everyone www.internetsociety.org

Global Presence

EUROPE

NORTH AMERICA

THE MIDDLE EAST

AFRICA

ASIA

LATIN AMERICA &

CARIBBEAN

118+

Chapters

Worldwide

The Internet Society

80,000+

Members and

Supporters

143+

Organization

Members

5 (6)

Regional

Bureaus

21/38

Countries where

ISOC Staff Work

& Languages

ISOC | Who and What

5 The Internet Society

IXP Tech Infrastructure &

Impact (+ Thank you)

6 The Internet Society

IXP Tech Infrastructure & Impact v IXPs need not be expensive to be effective.

v LINX, now one of the largest

IXPs in the world, started with

5 members and a donated switch.

v Bottom-up Community

Development v Technical Capacity Building v Local traffic cheaper, latency decreases, quality better

7 The Internet Society

IXP Impact: LAC Study | November 2013

• LAC Findings:

• Argentina : In one city à $100.00 per Mbps pre IXP/ down to $40.00 per Mbps post

IXP

• Brazil : NIC.br | PPT Metro System 26 IXPs attracting investment/content | 600Gbps at Peak

• Ecuador : (Pre) International transit was $100 Mbps | (post) Local traffic costs $1.00

Mbps v Now running RPKI v After CDN cache installed in Quito in 2009 -> traffic up 700%

• Additional Activities & Studies v Measurement Study in Bolivia & Paraguay | Raspberry Pi deployment v Paper on Bolivia – Hernan Galperin Univ of San Andres | Bolivia IXP Study | “Do

Internet Exchange Points Really Matter? Evidence from Bolivia” http://ow.ly/Jiw5X v Network efficiency Study in Argentina | Cabase and University of Buenos Aires

LAC IXP Study can be found here: http://bit.ly/1k6NaO0

The Internet Society

Workshop on the Development

Of IXPs in the Arab Region

Case Study: IXPs and the Impact on International Transit in Africa

By Michuki Mwangi (ISOC)

ITU Regional Economic and Financial Forum of

Telecommunications/ICTs for Africa

18 – 19 January 2016

Abidjan, Côte d’Ivoire www.internetsociety.org

Agenda

q Background on Africa Interconnection q Impact of Peering on International Transit q Conclusion

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Background on Africa Interconnection:

2008 Fiber infrastructure

Against IXPs in Africa

2000 – 2005: SEA-ME-WE-3 Total Capacity

480Gbps

• 17 IXPs in 15 African Countries

• 12 were considered responsive based on a survey conducted in 2008

• Average number of years across all

IXPs was 4.1yrs

• 10 of 12 IXPs provided traffic stats

• Highest had 200Mbps and lowest was 300Kbps

• 1/3 of the IXPs had an open membership policy. Remaining 2/3’s were subject to regulatory or membership set criteria

• 75% of the respondents had a

Mandatory Multilateral peering policy

• Copper and wireless connectivity was predominant over fiber

• 41% of the IXPs did not charge fees and the highest fees were $9,000 and lowest was $50

1993 – 2001: SAT2 Total Capacity 560Mbps

• 75% were ran by ISPA. Others by

NREN, Govt. and by a not-for-profit

(non-ISPA)

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2001 – 2008: SAT3 Total Capacity 340Gbps

2001 - 2008: SAFE Total Capacity 440Gbps

2008: Traffic distribution across10

African IXPs

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What we observed from 2008 Survey

Positive

•There was a seemingly good linkage between IXPs and the ccTLD

•IXPs had relatively “good” connectivity

•The role of Governments in

IXPs was seemingly progressive

•IXP Models were ideal “at that stage”

Negative

•The Mandatory Multi-

Lateral peering policy was a dominant obstacle to IXP growth

•Membership policies were not progressive

•IXP sustainability was an area of concern.

•More value added services need to be implemented at the IXPs

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Gaps identified

•There was a lack of general knowledge on IXP best practices to enable them grow

•There was no platform for sharing experiences or learning amongst the IXPs and operators

•Cross-border interconnection between networks was almost nonexistent

•30% of the known IXPs were unresponsive for unknown reasons

•Central, North and West Africa were lagging behind in IXP deployment

•Africa has a large “Internet Transit Deficit” in comparison to other regions.

The Internet Society

The Internet Society

Impact on Africa’s Interconnection Scene

• Conducted 15 workshops in 15 Africa countries on Technical and policy issues related to IXP development

• Workshops trained over 300 engineers and policy makers

• Established and organized 6 AfPIF events

• Supported the establishment and activities of the Africa IXP association (Af-IX)

• Provided technical assistance, equipment support to at least 10 IXPs

• Created awareness with key policy stakeholders i.e UNECA, African

Union, Regional Regulatory Associations, Regional Economic

Communities (RECs)

• Overall growth of the African peering ecosystem

• Work lead to award to implement African Union AXIS project

The Internet Society

The Internet Society

AXIS Project

• African Union awarded Internet Society two (2) contracts to implement AXIS project between 2012 – 2014

• Project focused on Capacity building and technical assistance in establishing IXPs

• Overall, phase 1 of the AXIS project trained over 1,200 people from 28 African Countries over the 2 year period

• AXIS Best practice workshops covered 28 African countries and trained over 700 people in English, French and Portuguese

• AXIS Technical Aspects workshops covered 28 African countries and trained over 500 engineers in interconnection technologies in English,

French and Portuguese

• Phase 2 of AXIS conducted 5 workshops across the 5 geographic regions of Africa (Central, East, North, South and

West Africa)

• Engaged over 350 experts from relevant public and private sector to discuss regional interconnection issues in in English and French

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AXIS Outcomes

• Phase 1 Outcomes

• 9 new IXPs have been established as a result of the AXIS project

• Most successful IXP project in the region and raised importance of IXPs across the board

• Established new partnerships to enable deliver workshops in different languages (French & Portuguese)

• In the process, we also developed regional francophone IXP expertise with support of partners

• Phase 2 Outcomes

• At least 2 IXPs per region will receive financial assistance to enable them evolve and grow to become regional IXPs

• Project will provide technical assistance to ISPs to enable them evolve and become regional carriers

• Project established and supported work of 5 regional task-forces to review policy and regulatory barriers that inhibit national and crossborder interconnection in their respective regions.

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Cross-Border: Percentage of ASNs (origin

ASNs) by country assignment in routes collected

IXP:

JINX (ZA)

All ASNs Origin ASNs

Cross-border: Percentage of ASNs (origin

ASNs) by country assignment in routes collected

IXP:

CAIX (EG)

All ASNs Origin ASNs

Cross-border: Percentage of ASNs (origin

ASNs) by country assignment in routes collected

IXP:

MIX (MZ)

All ASNs Origin ASNs

Example: ASN’s visible at KIXP

IXP:

KIXP (KE)

All ASNs Origin ASNs

• 35 IXPs in 27 Countries or 43.5% increase since 2008

• Total Traffic exchanged at African

IXPs >160Gbps

• More IXPs in West & Central Africa

• Data shows more cross-border interconnection/peering in East and

Southern Africa

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The Impact of Peering on International Transit

Reference data

• The global average connection speed is 5Mbps while the global average peak connection speed is 29.1 Mbps.

• Africa’s International Internet bandwidth has been growing at >50 CAGR 2011 -

2015

• International transit prices have been declining by >25% CAGR 2010 – 2015 in most major cities

• Internet traffic volume driven by video grows at a rate of ~60% every year

• Watching a HD stream requires ~6Mbps connection while watching an SD stream requires ~2Mbps connection

• Watching movies or TV shows on Netflix uses about 1 GB of data per hour for each stream of standard definition video, and up to 3 GB per hour for each stream of HD video

• Africa imports more than >95% of its Internet traffic from outside the continent.

Most of the content is imported from Europe

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Scenario Assumptions

• Bandwidth costs excluding backhaul, cross-connects and other expenses

• The service providers are offering 1 Mbps service to home users at a contention ratio of 50:1

• The local capacity/circuits cost less than international link

• Dedicated International capacity links pricing starting at STM

1 capacity starts $120 /Mbps

• Local point-to-point links pricing start at STM1 capacity starts at $30/Mbps

• 10% of the heavy users consume ~60% of the bandwidth

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Assumption 1: International Transit Costs

ISP

ISP A

Transit

Capacity

155 (STM1)

$ Transit

Price /

Mbps

$ 120

$ Monthly

Transit

Cost

18,600

Potential

Customers at 50:1 contention ratio

Contended

Transit

Price /

Mbps

7,750 $ 2.40

ISP B 1GE $ 100 100,000 50,000 $ 2.00

800,000 500,000 $ 1.60

ISPC

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10GE $ 80

Assumption 2: Local Peering Costs

ISP

ISP A

Peering

Capacity

155

Peering

Price

/Mbps

$ 30

$ Monthly

Peering cost

4,650

Potential

Customers at 50:1 contention ratio

7,750

Contended

Peering

Price

/Mbps

$ 0.60

ISP B 1GE $ 20 20,000 50,000 $ 0.40

ISP C 10GE $ 10

The Internet Society

100,000 500,000 $ 0.20

ISP

Transit vs. Peering Ratios – Scenario 1:

95% Transit 5% Peering

Transit

Bandwidth

Savings

(Mbps)

New Potential customers at

50:1 (transit) contention

Total New

Customers

Contended

Aggregate

Price / Mbps

Monthly

Income

Monthly

Expense

(Transit +

Peering)

Monthly

Cost

Savings

ISP A 7.75

387.5

8137.5

$ 3.0

$ 24,412.5

$ 23,250 $ 1,165.2

ISP B 50 2,500 52,500 $ 2.40

$ 126,000 $ 120,000 $ 6,000

ISP C 500 25,000 525,000 $ 1.80

$ 945,000 $ 900,000 $ 45,000

The Internet Society

Transit vs. Peering Ratios – Scenario 1:

95% Transit 5% Peering - Observations

• With 5% of traffic going through peering there would be no contention experienced for local traffic (when peering links equal transit links)

• However, for all ISPs to increase their monthly profit margins, they would need to reduce the capacity of their peering links to at most 5% of their Transit links

• Reducing the peering link capacity to 5% will reduce the local traffic contention ratio to less than 50:1

• All ISPs are able to realize modest cost savings resulting from additional customers but no Transit upgrade costs

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ISP

Transit vs. Peering Ratios – Scenario 2:

80% Transit 20% Peering

Transit

Bandwidth

Savings

(Mbps)

New Potential customers at

50:1 (transit) contention

Total New

Customers

Contended

Aggregate

Price /

Mbps

Monthly

Income

Monthly

Expense

(Transit +

Peering)

Monthly

Cost

Savings

ISP A 31 1,550 9,300 $ 3.0

$ 27,900 $ 23,250 $ 4,650

ISP B 200 10,000 60,000 $ 2.40

$ 144,000 $ 120,000 $ 24,000

ISP C 2,000 100,000 600,000 $ 1.80

$ 1,080,000 $ 900,000 $ 180,000

The Internet Society

Transit vs. Peering Ratios – Scenario 2:

80% Transit 20% Peering - Observations

• With 20% of traffic going through peering there would be no contention experienced for local traffic (when peering links equal transit links)

• However, for all ISPs to increase their monthly profit margins, they would need to reduce the capacity of their peering links to at most 20% of their Transit links

• Reducing the peering link capacity to 20% will reduce the local traffic contention ratio to less than 50:1

• All ISPs are able to realize better cost savings resulting from more new customers without transit upgrade costs

• ISPs/Operators that bill on usage, are likely to realise a 20% increase in billed revenue on

The Internet Society

ISP

Transit vs. Peering Ratios – Scenario 3:

50% Transit 50% Peering

Transit

Bandwidth

Savings

(Mbps)

ISP A 77.5

New Potential customers at

50:1 (transit + peering) contention

Total New

Customers

3875 11,625

Contended

Aggregate

Price /

Mbps

Monthly

Income

$ 3.0

$ 34,875

Monthly

Expense

(Transit +

Peering)

$ 23,250

Monthly

Cost

Savings

$ 11,625

ISP B 500 25,000 75,000 $ 2.40

$ 180,000 $ 120,000 $ 60,000

ISP C 5,000 250,000 750,000 $ 1.80

$ 1,350,000 $ 900,000 $ 450,000

The Internet Society

Transit vs. Peering Ratios – Scenario 3:

50% Transit 50% Peering - Observations

• With 50% of traffic going through peering there would be no contention experienced for local traffic (when peering links equal transit links)

• ISPs/Operators that bill on usage are likely to realize significant increased revenues compared to those who do not .

• However, for all ISPs to increase their monthly profit margins, they would need to reduce their peering links capacity to at most 50% of their Transit links

• Reducing the peering link capacity to 50% will subject the local traffic contention ratio of 50:1

• High contention ratio will negatively impact the end user experience on accessing local traffic.

The Internet Society

ISP

Transit vs. Peering Ratios – Scenario 4:

20% Transit 80% Peering

Transit

Bandwidth

Savings

(Mbps)

ISP A 124

New Potential customers at

50:1 (transit &

45:1 peering) contention

Total New

Customers

6,200 13,950

Contended

Aggregate

Price /

Mbps

Monthly

Income

$ 3.0

$ 41,850

Monthly

Expense

(Transit +

Peering)

$ 27,850

Visio n

2020

Monthly

Cost

Savings

$ 14,625

ISP B 800 40,000 90,000 $ 2.40

$ 216,000 $ 140,000 $ 76,000

ISP C 8,000 400,000 900,000 $ 1.80

$ 1,620,000 $ 1,000,000 $ 620,000

The Internet Society

Transit vs. Peering Ratios – Scenario 4:

20% Transit 80% Peering - Observations

• With 80% of traffic going through peering there be a need to upgrade the local peering links to be twice their transit links

• doubling local peering link capacity will reduce the contention ratios to about 45% and improve end user experiences for local traffic

• With more traffic being local and maintaining the transit link capacity, the contention ratio on international traffic will be non-existent

• With more local traffic and increased revenues, it is potentially easier to reduce contention ratios as low as 10:1 and maintain positive bottom lines

• ISPs/Operators that bill on usage are likely to realize significant increased revenues compared to others

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Conclusion

• Peering enables ISPs to saves costs from delays in upgrade of

International transit capacity, despite addition of new users on the network.

• The transit vs. peering ratio impacts the ISPs bottoms line. An ISPs that peer more realize higher cost savings.

• A network can have fewer users with fast Internet access and require the same transit/peering capacity as a network with more users on slow Internet access

• High profit margins favor ISPs that have large bandwidth (Transit+ peering) capacity

• To realize significant profit margins, ISPs need to peer at least 50% of their transit capacity

• Transit usage/demand will continue to grow even after the ratios change in favor of peering traffic.

The Internet Society

Thank you for your attention!

Jane Coffin, Director, Development Strategy coffin@isoc.org

The Internet Society | www.internetsociety.org

40 www.internetsociety.org

Annex: Additional Background

IXP Workshop April 5-6, Tunis, Tunisia

The Internet Society | www.internetsociety.org

41 www.internetsociety.org

ISOC: Global IXP, “W4C” & Interconnection/Peering

Activities

• ISOC works with partners throughout the world to develop IXPs , human capacity, bottom-up governance of IXPs & to develop Wireless for Community Projects

• How do we do this:

• With partners: DEF, Euro-IX, RIRs (RIPE-NCC, AfriNIC, APNIC,

LACNIC), IXPs, Cisco, Comcast, Google, Alcatel, NSRC, PCH, and other global and regional experts

• Through Grants & Community Collaboration v African Union Grant (AXIS I & II) v IXP Toolkit Grant from Google v Alcatel and Cisco donations & equipment grants v Comcast grant for IXP development and training in Bolivia & Paraguay v LAC-IX, RIPE-NCC, IX Associations, & IXPs who partner and donate time

The Internet Society

International IXP Development | Associations & Forums

An Internet Exchange Point (IXP) is a network facility that enables the interconnection of more than two independent Autonomous Systems, primarily for the purpose of facilitating the exchange of Internet traffic v IX-Federation | http://www.ix-f.net/

IXP Best Practices and Best Current Operational Practices https://www.euro-ix.net/ixps/set-up-ixp/ixp-bcops/

IGF IXP Best Practices | http://ow.ly/YYTFZ

43 The Internet Society

Internet Ecosystem – Impact | IXPs & “W4C”

• Internet Community Multiplier Effect

• Internet & Fibre Infrastructure Development

• Local technical community development & strengthening

• Train the trainer

• Network Operator Group (NOG) Development

• Mentoring Opportunities

• Economic Development & Investment | Additional

Sustainable Infrastructure Projects

• Bottom-up Governance & Amplifier Across Local

Ecosystem

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IXPs - Some Observations

• Peering enables ISPs to saves costs from delays in upgrade of

International transit capacity, despite addition of new users on the network.

• The transit vs. peering ratio impacts an ISPs bottom line. ISPs that peer more realize higher cost savings.

• A network can have fewer users with fast Internet access and require the same transit/peering capacity as a network with more users on slow Internet access

• High profit margins favor ISPs that have large bandwidth (Transit+ peering) capacity

• To realize significant profit margins, ISPs need to peer at least 50% of their transit capacity

• Transit usage/demand will continue to grow even after the ratios change in favor of peering traffic.

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IXP Work in Africa | 2013-2014 & 2015

2013-2015

• 60 Workshops | Best Practices & Technical Assistance workshops

(African Union AXIS Project)

• Equipment sent to DRC-Kinshasa, Egypt, Ghana, Malawi, Tunisia

2015

• Follow-on mentoring with partners to be provided to five (5) IXPs

• Networking workshops for DRC-Kinshasa, Nigeria, Zambia, Zimbabwe, &

Lesotho AND Online Network Operator Training!! Coming soon in French and Spanish. Russian in the future.

• African Peering & Interconnection Forum | 25-27 August 2015 (Maputo,

Mozambique)

• Support to NOGs

• Measurement study underway with Spanish university & coders from

Benin | Encourage data to be published on IX web-sites

46 The Internet Society

IXP Work in Asia | 2013-15 & 2016

2014

• Workshop in Papua New Guinea (w/PNG Regulator & NSRC)

• Equipment to support new IXP in Thailand

2015-16

• IXP Launch in Bangkok! New IXP – BKNIX (ISO cert data-centre)

• Discussions with Papua New Guinea, Kyrgyzstan, The Philippines,

Pakistan, and Tajikistan.

• Vanuatu – APNIC Coordination – Generators (NSRC, ISOC, others)

47 The Internet Society

IXP Work in Europe & CIS | 2014 & 2015

2014

• IXP Workshops in Georgia & Montenegro

• Equipment sent to IXP in Armenia

• Supported RIPE SEE & CEE Peering Forum

• Central Asian Internet Symposium December 2014

2015

• IXP Workshop in Montenegro (February 23-27) | RIPE-NCC,

France-IX, NIX.CZ, INEX, Cisco, ICANN

• Equipment to be sent to Montenegro – Q2 2015

• Support of CEE Peering Forum & RIPE SEE

• Study with Partners in Kyrgyzstan re Infrastructure Development-

2015 and BGP Workshop in November 2015

48 The Internet Society

IXP Work in Latin America & The Caribbean | 2013-15

• 15+ IXP Workshops | Best Practices, Technical Assistance, Community

Building in LAC

• 6 IXPs Launched | Argentina (2), Bolivia, Costa Rica, Honduras, Mexico

• 8 IXPs “Leveled-up” via equipment donations in LAC | Argentina,

Ecuador, El Salvador, Grenada, Honduras, Paraguay, Nicaragua

• 11+ Case Studies | Contracted Regional Experts in LAC to Develop Casestudies in South America and the Caribbean

• Fellowships for training events & IXP equipment donations

• LAC IXP Study (Nov 2013): Argentina, Brazil, Colombia & Ecuador

• Bolivia IXP Measurement Study started (2014) & Expanding Activities to

Paraguay and Central America (Raspberry Pi deployment)

49 The Internet Society

IXP Work in Latin America & The Caribbean | 2015-16

• Additional workshops planned with LACNIC, PCH and local partners

• Equipment sent to Paraguay & Mexico (Cisco donation)

• Funding received from Comcast for additional work in Paraguay & Bolivia v Team will continue baseline measurement studies in Bolivia & Paraguay and likely 3 additional countries in LAC v Data here on data collection efforts to date in Bolivia: http://cnet.fi.uba.ar/PIT/ v Data here on LACNIC/LACNOG/ISOC: http://ite.lacnog.org/

• 11+ Case Studies | Contracted Regional Experts in LAC to Develop Case-studies in South

America and the Caribbean | April/May 2015 on rebooted IXP Toolkit site & Case-studies

• LAC IXP Study (Nov 2013): Argentina, Brazil, Colombia, & Ecuador:

• Caribbean study (April 2015): 11 Caribbean Countries | IXP analyses included

• Caribbean Peering Forum | May 2015 (Barbados)

• LACNOG - LAC Peering Forum | October 2015 (Bogota, Colombia)

• Caribbean study coming out on Unleashing the Internet with a focus on IXPs.

Examines 9+ countries

50 The Internet Society

Regional NOG & Peering Forum | CaribNOG & CarPIF v Regional IX Associations v Af-IX | www.af-ix.net

v APIX | www.apix.asia

v Euro-IX | www.euro-ix.net

v LAC-IX | www.lac-ix.net/ v Regional NOG – CaribNOG | www.caribnog.org

v Regional Peering Forums v CarPIF | www.carpif.net

- PCH & ISOC |

Bevil Wooding

51 v LAC Peering | LACNIC/LACNOG | www.lacnic.net

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IXP & Other Work in Middle East | 2014-16

2014

• Equipment provided to TUNIXP (July 2014)

• ME IXP Workshop in Tunisia (Nov. 2014)

• Support to MENOG

• Arab IGF

2015

• Support to MEDNSF (Mar. 2015)

• Support to MENOG (Mar. – Apr. 2015)

• Support to BIX & PIX

2016

• Support to RIPE-NCC for MENOG 2016 in March

• Workshop with ITU Arab States office in April

52 The Internet Society

IXP Traffic Graph Snapshots | WHY?

IXPs should measure traffic to chart growth

Ecuador-Quito – 14.0 G

Jo-burg – 13.0 G

53 The Internet Society

Resources | Studies & Surveys

• ASEAN: Unleashing the Internet in SouthEast Asia http://www.internetsociety.org/doc/unleashing-potential-internet-asean-economies

• Asia Pacific: Mobile Internet Survey | http://www.internetsociety.org/doc/mobileinternet-usage-trends-asia-pacific

• LAC IXP Study | “Connectivity In Latin America and the Caribbean: The Role of

Internet Exchange Points http://ow.ly/Jiw8s

• Bolivia IXP Study | “Do Internet Exchange Points Really Matter? Evidence from

Bolivia” http://ow.ly/Jiw5X

• IXP Toolkit | http://www.internetsociety.org/ixptoolkitguide

• Africa IXP Study | “Assessment of the Impact of Internet Exchange Points (IXPs) –

Empirical Study of Kenya and Nigeria http://www.internetsociety.org/ixpimpact

• Lifting Barriers to Internet Development in Africa | Suggestions for Improving

Connectivity http://ow.ly/Jiwhx

• Rwanda Content Study | “Promoting Local Content Hosting to Develop the Internet

Ecosystem” http://ow.ly/JiwAE

54 The Internet Society

Resources | Videos

• IXP: Africa | AfPIF - Peering & IXPs: It Starts with a Handshake https://www.youtube.com/watch?v=5oIiP-p4zJM

• IXP Toolkit | Videos from Africa & Canada – IXP Development http://ixptoolkit.org/content/ixp-videos-0

• W4C: Mexico | Guerrero – Building the Internet in Guerrero https://www.youtube.com/watch?v=RNOjPQoxSCQ

• W4C: India | Digital Empowerment Foundation – Building the Internet through

Community Wireless Networks – Ocean in a Drop https://vimeo.com/147451465

55 The Internet Society

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