Internet Wholesale Bandwidth Options

There are two types of organizations that buy Internet bandwidth. Most are end users. They want the access for their employees. The others are resellers. They take large Internet connections and divvy up the bandwidth to hundreds or thousands of individuals and businesses. These are Internet Service Providers (ISPs) looking to buy at wholesale and sell at retail.

The largest networks in the world, called Tier 1, don’t purchase Internet access. They are part of the core network itself. Those major world wide networks exchange traffic on basis of equals called peering. Each network gets as much traffic as it sends to the others, so all benefit and no money is exchanged.

Everyone else has to get to the Internet by accessing one of these Tier 1 networks. The next level down, the Tier 2 networks, are also very large Internet service providers. Since they don’t have the enormous global traffic to participate in peering, they purchase what is called IP Transit. This is Internet access sold on a per Megabit per second per month basis.

Smaller Tier 3 networks can purchase IP Transit from Tier 2 networks, if they are large enough to have an assigned AS or Autonomous System number (ASN) to identify them as part of the Internet. Large scale ISPs fall into this category as well as some large corporations and other organizations.

Local and regional Internet Service Providers, including WISPs (Wireless Internet Service Providers), buy DIA or Dedicated Internet Access. DIA connections are like point to point private lines, except that one end connects to the Internet. Other private line characteristics still apply. The bandwidth provided is completely dedicated to the ISP and not shared with anyone else. There are generally SLAs or Service Level Agreements that spell out characteristics such as maximum latency, jitter and packet loss as well as time to respond to outages and time to make repairs.

Dedicated also means that there are no extra charges for heavily loading the line. You can use the entire capacity of the circuit in both directions or only some of it. The price is the same.

The smallest DIA service is usually a T1 line running at 1.5 Mbps. This is a symmetrical service, meaning 1.5 Mbps upload and 1.5 Mbps download. Usually the download path is much heavier loaded than the upload path for typical Internet access. If fact most consumer Internet access is sold with 5x to 10x higher speeds on download than upload. For business users, upload speeds can be important when transferring large files to remote backup sites and servers within colocation centers.

Obviously, T1 lines can’t serve a large user base but they work great for WiFi hotspots and rural or subdivision WISP service where signed-up customers number in the dozens, not hundreds. A nice feature of T1 lines is that they can be bonded by adding more lines to double, triple and quadruple bandwidth up to about 10 or 12 Mbps. The other nice feature of T1 lines is that they are available where other line services don’t reach. If you can get business telephone system into a facility, you can probably get T1 DIA service.

The next increment in traditional telecom bandwidth is DS3, also called T3 lines. This service runs at 45 Mbps which is large enough for a good size service provider to offer competitive bandwidth. Beyond that, SONET fiber optic services include OC3 at 155 Mbps, OC12 at 622 Mbps and OC48 at 2.5 Gbps are very popular.

A strong competitor to T-Carrier and SONET bandwidth is Carrier Ethernet. It comes in two flavors, Ethernet over Copper (EoC) typically from 1 to 50 Mbps and Ethernet over Fiber (EoF) from 10 Mbps to 10 Gbps. In a some metropolitan areas, you can also get EoFW or Ethernet over Fixed Wireless at DS3 and Fast Ethernet speeds. Where available, Carrier Ethernet tends to have considerably better pricing than other services.

Do you resell Internet access to other ISPs or end users? If so, see if you can get better wholesale pricing on Dedicated Internet Access and IP Transit services.

Telecom Providers Build Their Own Clouds

Just as cloud companies are beginning to mature as businesses, Internet service providers and other carriers have decided to build out their own cloud offerings. Now, how does a harried IT manager or small business owner sort through all the various opportunities?

It’s important to remember that we are in the early days of the cloud. Like all new technologies, this one has a maturity or learning curve. We are on the early part of the upward slope. What that means is a lot of activity from a lot of players. You can expect new companies with new services to be popping up all the time. It also makes sense that current players in the computer and networking space will want to corral as much of this business for themselves as possible. If not, they may be justifiably concerned that they could be relegated to sidelines.

Windstream, a major competitive carrier for T1 lines, MPLS networks, dedicated Ethernet Internet and enterprise VoIP, saw the handwriting on the wall when they acquired Hosted Solutions last year. Adding the assets of Hosted Solutions to Windstream’s existing data centers, has given them the critical mass to get into cloud services for existing customers. Such services include such things as cloud storage, Infrastructure as a Service and private, public, and hybrid clouds. Other carriers, such as Level 3 Communications, also have cloud services available.

Most carriers have large data centers for their own use. They often leverage these assets by offering colocation services within their secure and highly reliable facilities. Colocation is something of a forerunner of the cloud. The provider offers racks and cages where you can move your servers and network appliances. They provide the electricity with backup, environmental control and security. Another big draw of colocation is the proximity to large amounts of bandwidth. Many companies either can’t get or can’t afford the cost of constructing fiber optic connections to their own facilities. At a colocation center, the carrier is right down the hall and a mere cross-connect away. It’s the best deal on bandwidth you can get.

More recently, colocation centers have begun to offer contracted technical support and even leased servers for those who don’t want to buy their own. In essence, the colo becomes your data center and you don’t need the capital expense, operational expense or staffing to run your own. That being the case, what’s different about cloud services?

The primary difference between colocation and the cloud likes in both outsourcing and virtualization. The cloud infrastructure consists of massive computing power and storage, all virtualized so that it can be sliced and diced as users require. While in the cloud, you are unaware that you are not the only one using the facilities. The same bank of servers that run your applications can be running dozens or hundreds of others simultaneously. The magic of virtualization creates the illusion that you have one or more physical servers all to yourself.

A good cloud is much more than that. Not only do you rent rather than buy, but you rent by the minute or hour times the number of servers you are using. You can add or subtract virtual servers at will and only pay for the ones you are reserving. The same is true for storage. You don’t worry about buying a new disk when you fill up the one you have. You simply increase or decrease storage as needed and pay by the byte.

The ability to increase and decrease resources almost instantly is a feature unique to the cloud. This scalability is highly desirable for companies with varying loads or ones that are rapidly growing. There is no need to be constantly buying and upgrading equipment when you can simply log into your cloud account and add resources at will.

What carriers bring to the table is one stop shopping. They already provide last mile access, multi-site connectivity, and converged voice, video and data networks. By adding cloud services, you have one bill to pay and a single point of contact for resolving issues such as latency or availability. Independent cloud service providers will need to be on their toes to stay ahead of the carriers, by offering more advanced services and lower pricing to stay in the game long term.

Are you ready for the cloud? The range of services and competitive pricing makes cloud computing and storage, colocation and managed services more cost effective than they’ve ever been. Inquire about availability and pricing for the networking and computing services you need for your particular applications.

IP Transit vs Peering vs DIA

We live in a world of networks and networks of networks. The Internet is the ultimate example of networks upon networks upon networks. All of these networks need some way to communicate. For that, you have the choice of IP transit or peering.

Network to network communication would be unnecessary if the Internet was constructed the way most people envision it. When we think of the Internet, we think of one giant network that links everyone to everyone. It generally works that way for the end user, but the notion of a monolithic universal network is an illusion. Look inside the Internet and you’ll find it to be a collection of large, medium and small networks that all work together to get packets from one point to another. Let’s see what that takes.

At the top of the heap are Tier 1 networks. These are huge international IP networks that have points of presence in key locations around the world. Tier 1 networks are indeed the superhighways of the Internet. But like all highway systems, they don’t go everywhere. In order to create an Internet, you need to connect these superhighways together.

The connection process is called peering. The name suggests that this is a connection between equals or peers. That’s exactly right. Huge networks have huge amounts of traffic. If two of these networks peer to exchange traffic on an equal basis, then each network effectively doubles its reach. Network A has access to all the customers on Network B and vice versa.

Tier 1 networks peer on a settlement free basis. In other words, the networks are interconnected via high capacity routers and the traffic flows back and forth at will. Settlement free means that there are no toll booths at the border. Neither network pays the other because they are getting equal value through peering.

Not all networks are the same size. Smaller networks, called Tier 2, have less capacity and less reach than Tier 1 networks. Tier 1 networks aren’t about to peer with Tier 2 networks at no charge because the smaller network would be getting a lot more value from the arrangement than the larger one. What Tier 2 networks can do is ban together and peer among themselves to create a much larger entity that can compete with those Tier 1 networks. If they want access to the Tier 1 networks, they can pay a settlement charge based on the traffic imbalance. That charge is called IP transit.

Internet Service Providers have a choice when it comes to accessing the Internet. They can spend the capital and maintenance cost to build out their networks to the point where they can peer with other large networks, or they can just purchase IP transit services from a large network and avoid the investment in equipment and personnel.

Very small networks or medium size companies with their own internal networks will choose to buy Dedicated Internet Access rather than IP transit. You need to be a network operator with an assigned AS or Autonomous System number (ASN) that identifies each network on the Internet in order to qualify for IP Transit services. Some large organizations with connections to multiple networks may fit this definition, as well as large scale ISPs.

Everyone else, from local WISPs (Wireless Internet Service Providers) to SMBs (Small to Medium Size Businesses) simply purchases Dedicated Internet Access by the Mbps or Gbps of bandwidth. Operation of the Internet is left to those networks who specialize in that service.

What type of Internet connectivity makes the most sense for your business? It depends on whether you are a large ISP, a content delivery network, a large corporation with international locations, or a network of retail stores. Why not compare pricing options for IP Transit, Peering, or Dedicated Internet Access, as appropriate? Complementary consulting services are available to help you sort through the possibilities.

Gaining Ethernet Internet Access

You’ve no doubt heard by now that access to the Internet for business locations offers cost and bandwidth advantages over traditional telecom connections. So, how do you gain Ethernet Internet access? That’s easy. Just use this handy Ethernet Internet Finder.



You’ll likely find that there are a number of options for Ethernet Internet service, although not all of them are available at every business address. Note that this is a business service only. If you need residential or home office broadband, try “Can I Get DSL?” for DSL, cable, satellite, wireless 4G, and fiber to the home.

Your least expensive option for Ethernet Internet access is probably Ethernet over Copper, where available. That’s generally in metropolitan and suburban areas with dense populations. EoC, as it is called, offers bandwidths typically from 3 to 20 Mbps. You’ll pay about as much for a 3 Mbps Ethernet connection as you’d pay for a 1.5 Mbps T1 line. A very popular service is 10 Mbps Ethernet access, which is the standard Ethernet network speed.

Of course, local area network bandwidth has increased dramatically since Ethernet was first introduced. Most LANs are now operating at the Fast Ethernet speed of 100 Mbps or Gigabit Ethernet at 1000 Mbps. Would you be surprised to know that Ethernet WAN connections are also available at 100 and 1000 Mbps? That includes dedicated broadband Internet access with Ethernet in the first mile. These services require a fiber optic connection over SONET or native IP network.

Even if your business is located a bit beyond the service footprint for EoC or fiber optic delivery, it may still be possible for you to get Ethernet over DS1. Bonding T1 lines together may give you the Ethernet bandwidth you need at a reasonable price.

Does Ethernet Internet Access offer advantages for your business? Use the Ethernet Internet Finder to run a quick check and see.

Fiber Optic ISP

Not so long ago, Internet service came through the telephone as a collection of audible beeps and squeaks. That evolved into dedicated landline and wireless broadband. The next step has already been taken by the largest companies. Now, medium size businesses are also looking for a fiber optic Internet service provider.

Fiber optic Internet service for residential users is the domain of Verizon’s FiOS. Google will soon enter the market on a test basis with a new benchmark of performance: 1 Gbps. But business broadband connections have moved past the Gbps upper limit, with 10 Gbps service becoming more common for major organizations. The technology is proven. The question is how much bandwidth do you need and where do you need it?

The key to fiber optic levels of telecom service is the “lit” building. That’s a location where fiber optic cable has been pulled into the facility and connected to terminal equipment. Once the fiber is lit by a service provider, the building is considered to be “on net” and able to select from a wide variety of service options. This facility can also be a jumping off point to provide fiber optic service to other nearby buildings. The most expensive and time consuming aspect of fiber optic service is the initial fiber construction.

What types of fiber optic bandwidth services are available? They typically fall into two categories. The first is traditional SONET / SDH telecom services. These are the original telco standards for voice and data over fiber optic strands. The most basic service is OC-3 or Optical Carrier, level 3. This is a 155 Mbps bandwidth service based on the same TDM or Time Division Multiplexing technology as copper based T1 and T3 lines. In fact, DS3 bandwidth at 45 Mbps is most often delivered as part of an OC-3 signal that can transport 3 of these DS3 services.

The SONET standard fiber optic services include OC-12 at 622 Mbps, OC-48 at 2.5 Gbps, OC-192 at 10 Gbps and OC-768 at 40 Gbps. This highest levels are most often used by carriers, themselves, as their backbone networks.

The other category of fiber optic service is Carrier Ethernet or Metro Ethernet. Ethernet services are standardized at the same levels seen in LAN networks. These are 10 Mbps standard Ethernet, 100 Mbps Fast Ethernet, 1000 Mbps GigE, and 10 Gbps or 10 GigE service. Intermediate service levels are generally available, as Ethernet is readily scalable.

How do you decide between SONET and Ethernet Internet connections? Both are reliable, proven technologies that can deliver the bandwidth you desire. What often differs is availability and price. The best approach is to get a complete selection of fiber optic service quotes from a telecom broker and compare pricing on the services available for your business location. You may be surprised at how affordable the higher bandwidths have become.