The Hindu Business Line : DoT gives green signal to Net exchange

IN what could transform the dormant Internet sector in the country, the Department of Telecommunications (DoT) has accepted the recommendation of the Telecom Regulatory Authority of India (TRAI) to set up the National Internet Exchange of India (NIXI).

The `NIXI' is proposed to be a domestic exchange, with Internet exchange points (IXP) across the country (starting with four metros) so that all the ISPs together route the domestic traffic within the country, instead of taking it all the way to the US and back. This will result in cost saving as well as decongestion on the international link, resulting in better quality of service for customers.

At present, with the exception of a small number of big ISPs having their own gateways, ISPs generally buy international Internet access (upstream connectivity) from one or more of the bigger ISPs. Due to the size of these networks, and their comprehensive interconnection with other networks, they can send and deliver Internet traffic to any network connected to the Internet. It is this global connectivity that other ISPs buy and in turn sell access to the global Internet to their customers.

In a situation where there is a traffic meant to travel between a customer of one ISP to a customer of another ISP within the country, both ISPs have to pay for upstream connectivity required to deliver and receive this traffic respectively. This is also the case even when both ISPs use the same upstream connectivity provider.

Consequently, even for intra-India traffic, a lot of international bandwidth is consumed, which can be avoided resulting in decongestion of international upstream connectivity. The NIXI will therefore also help in removal of degradation in the form of higher latency caused due to inefficient management and international routing of domestic Internet traffic.

Also, this will reduce outflow of foreign exchange as payment to international carriers for usage of their bandwidth for upstream connectivity by Indian ISPs, even while reducing the amount of number of networks the traffic has to traverse resulting in less delays and reduced packet loss and hence better quality of service.

According to official sources, the proposed exchange will be, as suggested by TRAI, a non-profit neutral organisation duly registered under the laws of India as a Section 25 establishment without any profit motive. Its membership would be open to all ISPs who wish to connect to this.

`NIXI' is to be managed by an executive board comprising 5-7 honorary members who should be representing the relevant Ministries, regulator, industry association body and the academia. An operating team comprising professionals would manage the daily operational activities of the exchange. It will also act as a `contact point' for the member ISPs and should handle all relationship with the various agencies.

The sources noted that the department, keen to play a proactive role to facilitate this, had initiated discussions with the industry players to work out the modalities (finances included) of the exchange. It is also in the process of urging Bharat Sanchar Nigam Ltd, Mahanagar Telephone Nigam Ltd, ERNET and NICNET among others to join the `NIXI'.

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