LINX Reduces Peering Fees

• By theWHIR.com , September 11, 2008

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By David Hamilton, theWHIR.com

September 11, 2008 -- (WEB HOST INDUSTRY REVIEW) -- Not-for-profit organization London Internet Exchange (linx.net) has made cut its membership fees and service prices because of its unprecedented membership growth in the first half of 2008, making it more affordable for members to exchange traffic between networks.

"Under LINX's mutual-ownership membership model, profits are returned to members in the form of price cuts," LINX chief executive officer John Souter said in a statement. "The cuts we have announced are fully offset by the growth in our membership since January." He notes that 39 new members have connected in 2008 so far.

LINX, whose members include almost all UK Internet Service Providers and content delivery service providers, announced this week that its annual membership fees have been cut by 10 percent. LINX has also slashed the price of 1 GigE and 10 GigE ports on one of LINX's two local area networks.

Port prices on the other LAN are 25 percent lower to encourage membership in both networks, increasing the resilience of LINX and therefore of the whole Internet. LINX split its infrastructure into two separate LANs in 2002. One LAN is based on hardware supplied by Foundry Networks (foundrynet.com), the other from Extreme Networks (extremenetworks.com).

"We develop and maintain two separate LANs with equipment from two different switch vendors as part of our approach to resilience, a vital aspect of good management of an Internet exchange like LINX," Souter said. "These are a safeguard against the unlikely event of both LANs suffering simultaneous problems attributable to our vendors. This architecture also promotes healthy vendor competition."

LINX's flat-rate annual membership fee is £2,250, to cover the cost of running the facility. Members are also given equal say in organizational decisions. While LINX charges a fee for each port connected on the two LANs, there is no traffic charge.

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