[AfrICANN-discuss] Fwd: NEWS RELEASE: New Study Reveals How Internet Exchange Points (IXPs) Spur Internet Growth in Emerging Markets

[Michuki Mwangi]

<Apologies for cross posting>

-------- Original Message --------

New Study Reveals How Internet Exchange Points (IXPs) Spur Internet
Growth in Emerging Markets

Internet Society report demonstrates the significant cost and
performance gains in Kenya and Nigeria with IXP development

[Washington, D.C. USA and Geneva, Switzerland – 17 April 2012] – The
Internet Society today published the results of a study that
demonstrates the far-reaching economic and societal benefits of
establishing Internet Exchange Points (or IXPs) in emerging markets. The
study, commissioned by the Internet Society and conducted by independent
strategy and research consultancy, Analysys Mason, examined the critical
cost and performance benefits of IXPs in Kenya and Nigeria – two
sub-Saharan countries that have been on the leading edge of Internet
growth in Africa.

Analogous with the role that international airports play in airline
traffic, IXPs serve as critical hubs for data traffic exchange in the
global Internet infrastructure. Over 350 IXPs around the world enable
local Internet Service Providers (ISPs) and Internet backbone carriers
to efficiently and cost effectively exchange Internet traffic between
them. Many emerging markets do not have well-established IXPs, forcing
domestic Internet traffic onto long-distance international links,
resulting in significantly higher costs and latency.

The new study quantifies for the first time how IXPs enable Kenya and
Nigeria to save millions in telecommunications costs and raise
additional revenues in these countries while simultaneously speeding
local data exchange, and encouraging the development of locally hosted
content and services. For example:

*The Kenya Internet Exchange Point (KIXP) has dramatically reduced
latency of local traffic, speeding data from 200-600ms to 2-10ms on
average, while saving local ISPs nearly US$1.5 million per year on
international connectivity charges.

*In Nigeria, the Internet Exchange Point of Nigeria (IXPN) has
experienced a similar reduction in latency while currently saving
operators over US$1 million in connectivity costs per year.

*In Nigeria, the presence of the IXP has encouraged the repatriation of
financial platforms for online banking that were previously hosted
overseas, while in Kenya the  IXP has helped speed citizens’ access to
online tax and customs services offered by the Kenya Revenue Authority.

*The presence of effective IXPs induced Google to place a cache in both
countries in Spring 2011, which has significantly increased the amount
of locally distributed content (notably YouTube videos) at faster speeds.

*Improved access to local content has increased usage, helping to
increase the mobile data market by at least US$6 million per year in Kenya.

“This study puts into clear context the commonly accepted but seldom
quantified proposition that IXPs are essential for any country aspiring
to tap into the global Internet economy,” said Karen Rose, senior
director of development strategy at the Internet Society. “Offering more
than just cost and performance benefits, well-run IXPs serve as a
catalyst to dramatically enrich a country’s Internet ecosystem, opening
a new world of possibilities with comparably minimal investment. We hope
that this study will help inform the dialogue among government,
business, and technology leaders of emerging countries still struggling
with cost and bandwidth issues to show them, in no uncertain terms, the
benefits IXPs can yield for developing the most fertile ground possible
for Internet growth.”

Michael Kende, Analysys Mason partner and lead author on the study,
said, “Thanks to the leadership of the Internet Society, this is a
unique study that documents and quantifies the benefits of two growing
and regionally important IXPs in sub-Saharan Africa.  It demonstrates
the central role these IXPs have had in developing the Internet
ecosystems in each country and how they are paving the way for future
growth, including for advanced services such as cloud applications.”

Commenting on the study and the growth of the Internet in Africa, Fiona
Asonga, chief executive officer of the Telecommunications Services
Providers Association of Kenya (TESPOK), stated, "This year marks the
10th anniversary of KIXP and we are proud to have contributed to the
tremendous growth of the Internet in Africa during that time. We are
pleased that this independent study illustrates the practical value that
KIXP currently brings to its members, as well as the important
contributions it is making to the broader Internet economy in Kenya."

Muhammed Rudman, chief executive officer of the Internet Exchange Point
of Nigeria (IXPN), shared his thoughts on the future of the Internet in
the region.  He commented, "The mission of IXPN is to localize Internet
traffic and reduce routing costs, thereby improving the efficiency and
effectiveness of the Internet in Nigeria.  At the same time, our eyes
are very much set towards the future of the Internet in the region.  I
believe we have only scratched the surface of what IXPN will be able to
do for the growth of the Internet in Africa."

The study was conducted as part of the Internet Society’s
Interconnection and Traffic Exchange Programme, which aims to foster
robust, efficient, and cost-effective Internet interconnection
environments in emerging economies, and in furtherance of the Internet
Society’s overall mission to promote the open development, evolution,
and use of the Internet for the benefit of all people throughout the world.

The full study is available for download at
http://www.internetsociety.org/ixpimpact

About the Internet Society
The Internet Society is the trusted independent source for Internet
information and thought leadership from around the world. With its
principled vision and substantial technological foundation, the Internet
Society promotes open dialogue on Internet policy, technology and future
development among users, companies, governments, and other
organizations. Working with its members and Chapters around the world,
the Internet Society enables the continued evolution and growth of the
Internet for everyone. For more details, visit
http://www.internetsociety.org

Media Contact: Wende Cover, cover at isoc.org, +1-703-439-2773

About Analysys Mason (www.analysysmason.com)
Analysys Mason is a global consultancy and research company specializing
in telecoms, media and technology (TMT).  Our clients in the TMT sectors
operate in dynamic markets where change is constant. We help shape their
understanding of the future so they can thrive in these demanding
conditions. To do that, our consultants have developed rigorous
methodologies that deliver real-world results for clients around the world.

Media Contact: Gina Ghensi, press at analysysmason.com, +44-1223-460-600

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