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Thinkpad (AXcess News) Denver - Level 3 Communications, Inc. (Nasdaq: LVLT) defended its actions in cutting off Internet access to nearly 15% of the web's traffic when it unplugged Cogent Communications (AMEX: COI) free network access known as peering.
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Microsoft Peering is a free exchange of network access between network providers and is practiced as a courtesy, not a mandatory access. In the case of Cogent, Level 3 said it reviewed its previous peering agreements and found that Cogent was using much more bandwidth than Level 3 was and so it notified the competitor that it would cease providing Cogent free peering services in sixty days.
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Laptop Computers Level 3 claimed it notified Congent Communications of its intentions on July 18, basically putting Cogent on the spot to either renegotiate a deal or its peering access would go dark.
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Laptop Computer When no deal occured, Level 3 simply pulled the plug. But in doing so, they cut off what Cogent says represented between 15 to 17 percent of Internet access in North America.
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Desktop Computer Sureel Choksi, executive vice president of Level 3 Communications said, "We determined that the agreement that we had with Cogent was not equitable to Level 3."
Notebooks Choksi went on to say that, "Following our review, we decided that it was unfair for us to be subsidizing Cogent's business."
Lenovo Even though Choksi said they were subsidizing Cogent, the Broomfield, Colorado-based communications company turned Cogent's peering access o, according to Level 3, "to give Cogent customers a chance to arrange other Internet access services."
Hard Drive Level 3 said Cogent had not made any attempt to notify its customers about its pending peering disconnection and therefore it decided to reconnect the free service, announcing that Cogent customers had until 6:00 a.m. ET, November 9, 2005 to make other arrangements.
Travelstar Choksi took the opportunity to get back at Cogent for its accusations Friday saying, "Contrary to Cogent's public statements, reasonable, balanced, and mutually beneficial agreements for the exchange of traffic do not represent a threat to the Internet. They don't represent a threat to anyone other than those trying to get a free ride on someone else's network."
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