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Double Paid Traffic
Hetzner Online stands for a high-performance and high capacity Internet. In the last few years, our network infrastructure has expanded little by little in order to provide our customers with optimal performance. Currently, about two-thirds of our network traffic is directly exchanged with cost-neutral peerings of various partners. Among them are private peerings with large network operators.
For this reason, we have observed with growing concerns that some DSL and cable operators with leading market positions in Germany, the USA and also in Asia, do not have open peering policies, but on the other hand also do not have not having sufficient capacity to other Tier 1 carriers to ensure a fast and smooth access to the global Internet for their customers.
For high-performance internet access for customers, there needs to be sufficient capacities to all other Tier 1 carriers. Further network expansion is then traditionally problem-free, as long as both Tier 1 carries are willing, at no charge, to take more peering with each other. Once one of the parties tries to charge money from other carriers for further network expansion however, such discussions often fail and the much-needed network expansion does not proceed.
Often the DSL providers will argue that they don't want to bear the costs of expanding network capacity on their own.
Let's look at this argument in more detail. With a cost-neutral peering, each network operator pays for the expansion of its own network itself. Likewise, every network operator shall bear the costs of its own router interfaces at the connections between the networks (peering points). On this basis, most peerings are established worldwide.
As Hetzner Online, we operate many such cost-neutral peerings with many carriers worldwide and look forward to any other carrier with which we can exchange traffic on this basis. This means that we certainly do our part in the expansion costs and are also ready to expand further.
The argument of the DPCs (Double Payment Carrier), to not want to bear the costs of network expansion alone, in our opinion, is not conclusive. Rather, it seems that we as a content provider are not only expanding our own network, but we should also finance the network expansion of the DPC. We, Hetzner Online, reject this demand.
This strategy of carriers to refuse further free peering and demand money for the network expansion is commonly referred to in the industry as "Double Payment". The respective carriers already demanded money from their directly connected customers, and now try to charge the same traffic a second time to a Tier 1 counterpart.
Let's take a look at the impact of a DPC (Double Payment Carrier).
Because of this strategy there are large networks on the DSL market, which in prime time do not have enough bandwidth to the leading Tier 1 carriers such as Level3 or Cogent. As such, popular internet destinations (like Youtube) are often sluggish at peak times for DSL customers of these DPCs.
Large content providers have a strong interest to reach the DSL customers of DPCs with the best possible performance, and therefore are looking for alternatives to congested interfaces between the carriers. These are found usually through direct connections of the major content suppliers to the respective DPCs. At this point, the DPC can use their market position, since as a result of congested interfaces no other carrier can reach the DSL customers of the respective DPCs with sufficient speed. Therefore, the DPC can set prices, free of competition, which interested content providers have to pay to achieve performant connctions to "its" DSL customers.
In Germany, we have in recent years seen prices which are about the threefold market price compared to regular IP Transit. Industry colleagues have told us that DPCs in the Asian market sometimes charge even higher prices for a high-performance access to the respective DSL network.
How does this affect the DSL / cable customers of the respective DPCs?
The customers of the DPCs experience in practice access to the Internet, which is divided into two categories. On the one hand there is content which they can access quickly and with good performance. This content comes from those content providers who pay the DPC for a direct network access to their customers.
On the other side is the rest of the Internet content. In particular between 19 and 22 o'clock the concerned DSL and cable operators hit their capacity limits and therefore prevent the fluid and necessary exchange of data between the individual networks. This always leads to complaints from customers of these providers because their servers are not accessible with the usual performance they are used to from us.
These customers already paid for comprehensive and quick access to the Internet with their monthly DSL and cable fees. However, providers are no longer satisfied with just this source of profit. They now also want to collect revenue by charging large content providers fees for access to their network. For this reason, interfaces are being operated at their highest capacity -- to make paid access to the DSL and cable providers' networks attractive for content providers. The end consumer is then forced to pay double for unlimited access to the Internet. We at Hetzner Online do not support such policies and declare our support for full net neutrality.
Please look at the following links for additional information:
In relation to the German Telekom (DTAG), we have negotiated long and hard to get a direct network access to DSL customers of Telekom. But after the cost situation became unfavorable for us, we finally decided to reluctantly give up a direct network connection to DTAG.
As some of our customers are reliant on high-performance connections to the DTAG network, and the situation could not be solved satisfactorily through various traffic engineering measures (redistributing the DTAG traffic on different Tier1 carriers), we are offering these customers the opportunity to book Double Paid Traffic via an additional uplink to DTAG.
This option can be booked for any server and costs € 4.20 a month. With this add-on, we will connect an uplink to DTAG via Core-Backbone for the assigned IP addresses. The included traffic is similar to the respective traffic limits of each server category. An additional € 3.50 will be charged for each TB of traffic that exceeds the traffic limit. No Flexi-Pack is needed for the activation of the double-paid traffic.
Booking Double Paid Traffic
Set-up time: roughly 1 working day
For Dedicated Root Servers and vServers
Go to "Main functions" -> "Servers", select the specific server, and then click on "Support". Under "Request Type" choose "Product Advice".
For Managed Servers
Go to "Administration" -> "Support" -> "Support Request" -> and under "Category" choose "Managed Server". Then enter your Tariff/Product/Invoice number. And then under Options click on "Technical Request".
For Colocation Racks
Go to "Main functions" -> "Servers", select the specific colocation rack, and then click on "Support". Under "Request Type" choose "Product Advice".
Make sure to clearly state that you would like to order the DTAG uplink in the text field of the request and that you agree to pay the additional € 4.20 a month. The add-on will be called "Double Paid Traffic" on your bill.
Customers with colocation racks should also state that they agree to the additional traffic overage charge of € 3.50/TB.
Customers who have dedicated servers or vServers and who pay traffic overage charges should also clearly state that they agree to the increased traffic overage charge of € 3.50/TB.
It is not possible to provide the DTAG uplink for individual IPs (if the dedicated server or rack has several IPs and/or subnets). The option can only be applied to all IPs/subnets of the dedicated root server or colocation rack.
What about Dedicated Root Servers with failover IPs/subnets?
Best explained with an example:
- Server A has a failover IP and the DTAG uplink.
- Server B does not have a failover IP and does not have a DTAG uplink.
If that customer switches the failover IP to server B, then the option for the DTAG uplink no longer applies. Therefore, if the failover IP is switched to server B, traffic from that server with a destination within DTAG's network (the target IP is in the DTAG network) will NOT go directly via Core-Backbone in the DTAG network (at least, we cannot guarantee that); rather it will go via other routes (currently NTT or GTT).
Is there is a direct peering with the Telekom?
So far, only a small part of our customers make use of the "Double Paid Traffic" offer, which is why we rely on the offer of a reseller to route that traffic. In the current low traffic volume, a direct-access to the DTAG network would be uneconomical. Our reseller has assured us that our traffic leads directly to the DTAG network via a paid connection, which is not operated at capacity limit and thus ensures good performance even during rush hour.