Level 3, Google establish settlement-free interconnection arrangement

Level 3 Communications has reached a new multi-year, settlement-free interconnection agreement with Google (NASDAQ: GOOG) covering their global backbone networks.

Similar to earlier agreements Level 3 has made with other large carriers, the two companies said that this pact will help both of them meet their customers' needs for the next 10 years and beyond.

A key element of the new arrangement is that it is focused on the bit mile balance concept, one where both companies will agree to carry equitable amounts of bit miles, taking into account both the amount of traffic and the distance over which that traffic is carried by each network.

A potential benefit for end-users that access Google's content is that a network can improve bit mile balance by delivering traffic to the other participating network so that it is closer to its end users.

In addition, the two service providers said that the agreement will facilitate the continued growth of interconnection locations between Level 3 and Google, as required to support an ever-growing demand for the Internet.

"Our bit mile interconnection agreement with Google highlights the importance of all networks -- content-based, backbone or last mile -- to achieve an equitable arrangement that benefits Internet users worldwide," said Paul Savill, senior vice president of core product management for Level 3.

Google is the latest in a string of interconnection agreements Level 3 has made with service providers. Previously Level 3, which acts as an Internet transit provider for a number of content providers like Netflix (NASDAQ: NFLX), established interconnection agreements with AT&T (NYSE: T) and Verizon (NYSE: VZ).

For more:
- see the release

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