Internet Society report on Nigeria

Internet Society report demonstrates the significant cost and
performance gains in Kenya and Nigeria with IXP development

[Washington, D.C. USA and Geneva, Switzerland ¬ 17 April 2012] ¬ The
Internet Society today published the results of a study that
demonstrates the far-reaching economic and societal benefits of
establishing Internet Exchange Points (or IXPs) in emerging markets.
The study, commissioned by the Internet Society and conducted by
independent strategy and research consultancy, Analysys Mason,
examined the critical cost and performance benefits of IXPs in Kenya
and Nigeria ¬ two sub-Saharan countries that have been on the leading
edge of Internet growth in Africa.

Analogous with the role that international airports play in airline
traffic, IXPs serve as critical hubs for data traffic exchange in the
global Internet infrastructure. Over 350 IXPs around the world enable
local Internet Service Providers (ISPs) and Internet backbone carriers
to efficiently and cost effectively exchange Internet traffic between
them. Many emerging markets do not have well-established IXPs, forcing
domestic Internet traffic onto long-distance international links,
resulting in significantly higher costs and latency.

The new study quantifies for the first time how IXPs enable Kenya and
Nigeria to save millions in telecommunications costs and raise
additional revenues in these countries while simultaneously speeding
local data exchange, and encouraging the development of locally hosted
content and services. For example:

*The Kenya Internet Exchange Point (KIXP) has dramatically reduced
latency of local traffic, speeding data from 200-600ms to 2-10ms on
average, while saving local ISPs nearly US$1.5 million per year on
international connectivity charges.

*In Nigeria, the Internet Exchange Point of Nigeria (IXPN) has
experienced a similar reduction in latency while currently saving
operators over US$1 million in connectivity costs per year.

*In Nigeria, the presence of the IXP has encouraged the repatriation
of financial platforms for online banking that were previously hosted
overseas, while in Kenya the IXP has helped speed citizens¹ access to
online tax and customs services offered by the Kenya Revenue Authority.

*The presence of effective IXPs induced Google to place a cache in
both countries in Spring 2011, which has significantly increased the
amount of locally distributed content (notably YouTube videos) at faster speeds.

*Improved access to local content has increased usage, helping to
increase the mobile data market by at least US$6 million per year in

³This study puts into clear context the commonly accepted but seldom
quantified proposition that IXPs are essential for any country
aspiring to tap into the global Internet economy,² said Karen Rose,
senior director of development strategy at the Internet Society.
³Offering more than just cost and performance benefits, well-run IXPs
serve as a catalyst to dramatically enrich a country¹s Internet
ecosystem, opening a new world of possibilities with comparably
minimal investment. We hope that this study will help inform the
dialogue among government, business, and technology leaders of
emerging countries still struggling with cost and bandwidth issues to
show them, in no uncertain terms, the benefits IXPs can yield for
developing the most fertile ground possible for Internet growth.²

Michael Kende, Analysys Mason partner and lead author on the study,
said, ³Thanks to the leadership of the Internet Society, this is a
unique study that documents and quantifies the benefits of two growing
and regionally important IXPs in sub-Saharan Africa. It demonstrates
the central role these IXPs have had in developing the Internet
ecosystems in each country and how they are paving the way for future
growth, including for advanced services such as cloud applications.²

Commenting on the study and the growth of the Internet in Africa,
Fiona Asonga, chief executive officer of the Telecommunications
Services Providers Association of Kenya (TESPOK), stated, “This year
marks the 10th anniversary of KIXP and we are proud to have
contributed to the tremendous growth of the Internet in Africa during
that time. We are pleased that this independent study illustrates the
practical value that KIXP currently brings to its members, as well as
the important contributions it is making to the broader Internet economy in Kenya.”

Muhammed Rudman, chief executive officer of the Internet Exchange
Point of Nigeria (IXPN), shared his thoughts on the future of the
Internet in the region. He commented, “The mission of IXPN is to
localize Internet traffic and reduce routing costs, thereby improving
the efficiency and effectiveness of the Internet in Nigeria. At the
same time, our eyes are very much set towards the future of the
Internet in the region. I believe we have only scratched the surface
of what IXPN will be able to do for the growth of the Internet in Africa.”

The study was conducted as part of the Internet Society¹s
Interconnection and Traffic Exchange Programme, which aims to foster
robust, efficient, and cost-effective Internet interconnection
environments in emerging economies, and in furtherance of the Internet
Society¹s overall mission to promote the open development, evolution,
and use of the Internet for the benefit of all people throughout the

The full study is available for download at