This represents a significant dynamic shift in the peering ecosystem since the Tier 1 ISPs are being cut out of a high volume traffic exchange loop.
We have learned that Internet traffic volume is a key determinant as to whether peering makes sense financially.
Video traffic dominating the Internet and the requirement for flawless video, taken together, highlight the importance of an optimized Internet Peering Ecosystem.
Comcast put in place a Peering Policy stating that they require (among other things) that traffic volumes exchanged be roughly balanced.
Very few peering candidates have or will ever have a balanced ratio to offer to access network.
Comcast started offering a Paid Peering service for those that did not meet their peering prerequisites.
This captive customer base is the source of potentially great positional power in the Internet Peering Ecosystem as shown in Figure 7.