Really the answer to all of the peering questions is that it is one big
game of chicken.
You have four players:
The real question is who will pull out first. I do not agree with
GTEI/BBN's tactics, but unfortunately they need to do what they need to do.
The nature of peering is that it is voluntary. Therefore people can
choose what their peering policy is. If Exodus gives in first then GTEI
won. If GTEI gives in then Exodus and the rest of the smaller players win.
(Which is better, of course). Which side will win is dependant on the
This is the danger of running a network dependant strictly on peering
arrangements. But a network of peering is cheaper then one that is backed
up by transit circuits. But this is a different business model then Exodus.
No matter what happens, the end result will be a corner stone of what the
Internet will become. Its not a technical issue. Its a business issue.
There may be technical justifications, but it is still a business issue.