TelstraClear is no longer peering with Auckland-based ISP ICONZ, but this isn't the start of a general trend away from open peering, says TelstraClear.
ICONZ had been buying international bandwidth off TelstraClear, however that agreement lapsed and ICONZ has chosen another provider. TelstraClear spokesman Mathew Bolland says an ISP needs to buy a product or service from TelstraClear in order to also peer, or exchange traffic, with TelstraClear.
"When you buy national or international bandwidth from us as part of that you get traffic exchange with TelstraClear. To continue with that exchange they would have to buy a product from us."
ICONZ general manager Sean Weekes says traffic travelling between ICONZ and TelstraClear will be routed through Sydney and back to New Zealand and will increase its latency as a result.
"We should have a solution in place by the end of the day [Tuesday]."
CityLink, the Wellington based network provider that operates the two peering exchanges, says its customers have a variety of peering models.
"Some are providing open peering with all other peers, some have closed peering arrangements with only a few others," according to Neil de Wit, managing director.
De Wit says even if a major ISP did pull out of the peering exchanges it wouldn't affect connectivity between the other ISPs.
"Network efficiency is based on the distance to the exchanges and we try to get the providers as close to the exchanges as possible."
De Wit says most of the customers that use the peering exchanges aren't ISPs, but corporates and organisations that value network efficiencies.
"We've been talking to a lot of universities because they're looking at putting more content online, heavy duty content, and want to be able to offer distance learning and things like that."
In July TelstraClear rubbished rumours that it planned to charge all ISPs to peer with it (No plans to charge for peering says TelstraClear.