1. Exercise
peering
defini.ons
The
Peering Simulation
Game
©2012
DrPeering
Interna.onal
Licensed
material
–
sales@DrPeering.net
hAp://DrPeering.net

2. Apply
the
defini.ons
• Strategy
Game
• Use
the
terminology
correctly
• Nego.ate
Peering
• Successful
in
dozens
of
fora
• Engaging
• Fun!
2

3. Transit Provider X
The Peering Game
A B
IXN
X X
IXW IXE
Y Y
IXS
C D
Transit Provider Y

4. 3 Rules
1. Goal: Maximize bank holdings. Make money by
acquiring customers and reduce transit costs by
peering
2. Play: Roll the dice and expand your network by
selecting that many adjacent “squares” of
customers
Gain transit revenue of $2000 for each customer
square you own
Pay transit fees of $1000 for each square of traffic
that other ISPs own
3. If at Exchange Point, two ISPs can negotiate
peering:
– $2000 recurring cost and loss of 2 turns, ISPs
negotiates who covers the costs of peering Quick round…

5. Transit Provider X
A A A A A B
IXN
A
A rolls 5,
X Wants to peer w/B – moves to IXN X
IXW Receives revenue on 6 squares (6*$2000) IXE
Pays Transit on others squares (3*$1000)
Y Y
$12,000 - $3,000 = $9,000
IXS
C D
Transit Provider Y

6. Transit Provider X
A A A A A B
IXN
A B
B
B
B rolls 3,
A rolls 5,
X Pays Transit on others to IXE(3*$1000)
X
Going squares
IXW Receives revenue on 6 4 squares (4*$2000)
Receives revenue on squares (6*$2000)
IXE
Y Pays Transit on $3,000squares (8*$1000)
$12,000 - others = $9,000 Y
$8,000 - $8,000 = $0
IXS
C D
Transit Provider Y

7. Transit Provider X
A A A A A B
IXN
A B
B
B
BC rolls
rolls 3,
A rolls 5, 6,
X Pays TransitCan get squares (3*$1000)
on others to IXE
X
IXW Can get to IXW, likes IXS
Receives revenue others squares (8*$1000)
Pays Transit on on 6 squares (6*$2000)
IXE
YC Receives revenue on 7 squares (7*$2000)
$12,000 - $3,000 = $9,000
Receives revenue on 4 squares (4*$2000) Y
Pays Transit on others squares (11*$1000)
$8,000 - $8,000 = $0
C $14,000 - $11,000 = $3,000
C
C
IXS
C C C D
Transit Provider Y

8. Transit Provider X
A A A A A B
IXN
A B
B
B
BC rolls
rolls 3,
A rolls 5, 6,
X Pays TransitCan get rolls 1,
D to IXE
on others squares (3*$1000)
X
Late on on to squares IXS
IXW Can get 6 IXW, (8*$1000)
Receives revenue others heading to IXE
Pays Transitentrantsquares (6*$2000)
IXE
YC Pays Transit on others squares (11*$1000)
Receives revenue on=2$9,000 (2*$2000)
$12,000 - $3,000 squares
Receives revenue on 4 squares (4*$2000) Y
Receives$8,000 - $8,000 = $0 (7*$2000)
revenue on 4 squares
Pays Transit on $11,000 = $3,000
C $14,000 - others squares (17*$1000)
$4,000 - $17,000 = -$13,000
C
C D
IXS
C C C D
Transit Provider Y

9. Scoreboard after Round 1
• ISP A: $9,000
• ISP B: $0
• ISPC: $3,000
• ISPD: -$13,000
• On to Round 2à

10. Transit Provider X
A A A A A B
IXN
A B
A B
B
A
BC rolls 6,
rolls 3,
A rolls rolls 3,
A 5,
XA Pays TransitCan get rolls 1,
D to IXEIXW
on others squares (3*$1000)
X
Can Attaches to(6*$2000)
Late on on to IXW, IXS(9*$2000) IXE
IXW get 6
Receives revenue others heading to IXE
Transitentrantsquares
Pays Receives revenue squares (8*$1000)
Pays$12,000 on otherson$9,000(11*$1000)
Transit - $3,000 = 9 squares
squares Y
YC Receives revenue on 4 squares (4*$2000)
Pays Transit on others squares (17*$1000)
Receives$8,000 onon 4 squares (7*$2000)
Pays Transit others squares (13*$1000)
revenue$8,000 = $0
-
Receives revenue- on 4 squares (2*$2000)
$18,000 $13,000 = $5,000
C $14,000 - $11,000 = $3,000
$2,000 - $17,000 = -$15,000
C Wants to peer with C – split costs?
YES: -$1,000 + both lose a turn
C Neither has to pay transit to each other! D
IXS
C C C C D
Transit Provider Y

11. Transit Provider X
A Position
9 Revenue squares A A IXN B B
A A A B B B B
A1 lost turn B
Peering w/C
A B
reduced cost $8000/turn
B
A
BC rolls 6, 6,
rolls rolls
B 3,
A rolls rolls 2,
A 5,
XA Pays TransitCan get rollsto(3*$1000)
D to to 1,IXW XB
Attaches IXE IXS
on others squaresIXE*IXN
Can Attaches (6*$2000)
Late on onto IXW, (11*$1000) IXE
IXW get
Receives revenue others heading to IXE
PaysPays Transiton 6others10 squares (10*$2000)
Transitentrantsquares
Receives on otherssquares (8*$1000)
revenue on squares (13*$1000)
YC Pays$12,000 - $3,000 = $9,000
Transit squares
Receives revenue on 4 squares (4*$2000)
Pays Transit on on others squares (8*$2000)
Pays Transit others squares (17*$1000)
on 8 squares (21*$1000)
Receives revenue 4 squares (7*$2000) Y
Receives$8,000 - $8,000 = $0
revenue on
Receives $20,000--$13,000 = $3,000
$14,000 - $11,000squares-$1,000
$16,000 on 4 = $3,000
revenue $21,000 = (2*$2000)
C Wants to-peer with = -$15,000
$2,000 $17,000 C – split costs?
Wants to peer with Alose a turn
YES: -$1,000 both – split costs?
C Neither has toYou pissed me each other
NO: pay transit to off,
C Yes: if $0 & B lose both turns D
IXS walk away
Both
C C C C D
Transit Provider Y

12. Let’s play!
WELCOME TO BILLAND
4 ISPs that have never played before
Open Board
$35,000 VC Funding
$25,000 VC Funding – HARD Economic Times
We want to hear your thought process and
peering negotiations
Winner - prize

13. Play Game
Transit Provider X N Internet Service Provider Sta rting Point
A B Get $2000 re ve nue for each square you own
Pay $1000 tra nsit fe e to your upstream for each square others own
Peering Array
Internet Exchange Point East
Reduce transit fee by peering with other ISPs at exchange point; pe e ring costs
E $2000 per round and loss of 2 turns, split how ISPs see fit
Sum of Transit $$$$ paid to X
W
Sum of Transit $$$ Paid to Y
Revenue (Squares * $2000)
Bonus Content Squares
Pay for Transit to C?
Pay for Transit to D?
Pay for Transit to A?
Pay for Transit to B?
Transit Cost (*$1000)
# Squares Owned
#OthersSquares
Peering Costs
Running Total
PLAYER
PLAYER
C D
ROUND
XpeerY
Roll
S Transit Provider Y
Net
## $0 3 $0 $0 $0 $0 A 1 1 1 $ -
A
0
1
## $0 3 $0 $0 $0 $0 B 1 1 1 $ -
D C B
0
1
## $0 3 $0 $0 $0 $0 C 1 1 1 $ -
0
1
## $0 3 $0 $0 $0 $0 D 1 1 1 $ -
0
1
copy A ## 1 $2,000 3 ($3,000) $0 $25,000 $25,000 A 1 1 1 $ -
copy B ## 1 $2,000 3 ($3,000) $0 $25,000 $25,000 B 1 1 1 $ -
Calculate
copy C ## 1 $2,000 3 ($3,000) $0 $25,000 $25,000 C 1 1 1 $ -
copy D ## 1 $2,000 3 ($3,000) $0 $25,000 $25,000 D 1 1 1 $ -
Note s: Jan A ## 1 $2,000 3 ($3,000) $0 ($1,000) $24,000 A 1 1 1 $ 3,000 A
Can only move adjacently and diagonally Jan B ## 1 $2,000 3 ($3,000) $0 ($1,000) $24,000 B 1 1 1 $ 6,000 B
Hint: Calculate cost of NOT peering vs. Cost of peering Jan C ## 1 $2,000 3 ($3,000) $0 ($1,000) $24,000 C 1 1 1 $ 3,000 C
Jan D ## 1 $2,000 3 ($3,000) $0 ($1,000) $24,000 D 1 1 1 $ 6,000 D
At end of game we assume all roll a 3 for remaining rolls Feb A ## 1 $2,000 3 ($3,000) $0 ($1,000) $23,000 A 1 1 1 $ 9,000 A
Feb B ## 1 $2,000 3 ($3,000) $0 ($1,000) $23,000 B 1 1 1 $ 12,000 B
Winner is the ISP will the largest bank account at the end Feb C ## 1 $2,000 3 ($3,000) $0 ($1,000) $23,000 C 1 1 1 $ 9,000 C
Feb D ## 1 $2,000 3 ($3,000) $0 ($1,000) $23,000 D 1 1 1 $ 12,000 D
Mar A ## 1 $2,000 3 ($3,000) $0 ($1,000) $22,000 A 1 1 1 $ 15,000 A
Mar B ## 1 $2,000 3 ($3,000) $0 ($1,000) $22,000 B 1 1 1 $ 18,000 B
Mar C ## 1 $2,000 3 ($3,000) $0 ($1,000) $22,000 C 1 1 1 $ 15,000 C
Mar D ## 1 $2,000 3 ($3,000) $0 ($1,000) $22,000 D 1 1 1 $ 18,000 D
Apr A ## 1 $2,000 3 ($3,000) $0 ($1,000) $21,000 A 1 1 1 $ 21,000 A
Apr B ## 1 $2,000 3 ($3,000) $0 ($1,000) $21,000 B 1 1 1 $ 24,000 B
Apr C ## 1 $2,000 3 ($3,000) $0 ($1,000) $21,000 C 1 1 1 $ 21,000 C
Apr D ## 1 $2,000 3 ($3,000) $0 ($1,000) $21,000 D 1 1 1 $ 24,000 D
May A ## 1 $2,000 3 ($3,000) $0 ($1,000) $20,000 A 1 1 1 $ 27,000 A
May B ## 1 $2,000 3 ($3,000) $0 ($1,000) $20,000 B 1 1 1 $ 30,000 B
May C ## 1 $2,000 3 ($3,000) $0 ($1,000) $20,000 C 1 1 1 $ 27,000 C
Mayu D ## 1 $2,000 3 ($3,000) $0 ($1,000) $20,000 D 1 1 1 $ 30,000 D
Jun A ## 1 $2,000 3 ($3,000) $0 ($1,000) $19,000 A 1 1 1 $ 33,000 A
Jun B ## 1 $2,000 3 ($3,000) $0 ($1,000) $19,000 B 1 1 1 $ 36,000 B
Jun C ## 1 $2,000 3 ($3,000) $0 ($1,000) $19,000 C 1 1 1 $ 33,000 C
Jun D ## 1 $2,000 3 ($3,000) $0 ($1,000) $19,000 D 1 1 1 $ 36,000 D
Jul A ## 1 $2,000 3 ($3,000) $0 ($1,000) $18,000 A 1 1 1 $ 39,000 A
Jul B ## 1 $2,000 3 ($3,000) $0 ($1,000) $18,000 B 1 1 1 $ 42,000 B
Jul C ## 1 $2,000 3 ($3,000) $0 ($1,000) $18,000 C 1 1 1 $ 39,000 C
Jul D ## 1 $2,000 3 ($3,000) $0 ($1,000) $18,000 D 1 1 1 $ 42,000 D
Aug A ## 1 $2,000 3 ($3,000) $0 ($1,000) $17,000 A 1 1 1 $ 45,000 A
Aug B ## 1 $2,000 3 ($3,000) $0 ($1,000) $17,000 B 1 1 1 $ 48,000 B
Aug C ## 1 $2,000 3 ($3,000) $0 ($1,000) $17,000 C 1 1 1 $ 45,000 C
Aug D ## 1 $2,000 3 ($3,000) $0 ($1,000) $17,000 D 1 1 1 $ 48,000 D
Sep A ## 1 $2,000 3 ($3,000) $0 ($1,000) $16,000 A 1 1 1 $ 51,000 A
Sep B ## 1 $2,000 3 ($3,000) $0 ($1,000) $16,000 B 1 1 1 $ 54,000 B
Sep C ## 1 $2,000 3 ($3,000) $0 ($1,000) $16,000 C 1 1 1 $ 51,000 C
Sep D ## 1 $2,000 3 ($3,000) $0 ($1,000) $16,000 D 1 1 1 $ 54,000 D
Oct A ## 1 $2,000 3 ($3,000) $0 ($1,000) $15,000 A 1 1 1 $ 57,000 A
Oct B ## 1 $2,000 3 ($3,000) $0 ($1,000) $15,000 B 1 1 1 $ 60,000 B