Broadband services, such as DSL, are now being rolled out by multiple telcos in Tier 2-4 markets. Traditionally, these markets have not been stopping-points for the major backbone providers (Sprint, UUNET, iMCI, CW, et al.) and as such don't have high speed transit connections (DS3 and above). In addition, these locations do not have good local peering meet points, or IX's, for local or regional traffic.

Currently, the major peering points are the MAE's and PAIX. Most large providers will only peer with a local/rural ISP if they can make it to these locations. However, the distances, and thus the mileage-based cost for circuits to these locations, are extremely expensive. For example, a DS3 from ABQ to PAIX will cost between $20,000 to $45,000 per month, and that is just the circuit cost. One still has to obtain space and a router at PAIX.

Major backbone providers currently do not see a need to put large POPs in these Tier 2-4 cities. They cite the "lack of demand" for services which, one could say, is a myopic point of view. DSL is exploding in these markets and the demand is there now. The transit links are not.

If an ISP wanted to get a DS3 to UU.NET (even Frac DS3) it would have to pay backhaul to PHX or LAX or DFW. This increases the cost of the transit beyond what most local ISP's can afford.

If broadband services are going to be sucessful in these markets, the local ISP needs to have better access to better networking.

In other words, we would like to encourage:

• The promotion and education of local IX's.
• The creation of local IX's.
• Better access to backbone transit vendors without the backhaul costs.
• Regional and national backbone vendors exchanging routes at locations other than the current MAE's/PAIX's.
• The willingness to peer at local IX's, and not just local routes