OfReg moves to regulate local IXPs

| 08/03/2021 | 25 Comments

(CNS): Following a public and industry consultation on the lack of internet exchange points (IXPs) in the Cayman Islands, OfReg, the utilities regulator, has revealed that it is creating a regulatory framework to pave the way for these local exchanges. OfReg said that it is in the public interest to regulate IXPs to protect local internet traffic and cut costs.

In a press release issued Monday, OfReg explained that IXPs, or ‘peering points’, are physical locations where different networks connect to exchange internet traffic via common switching infrastructures. The regulator stated that they are a key part of the internet ecosystem and represent a vital way to increase the efficiency, affordability and quality of connectivity.

There were no IXPs, peering between internet service providers (ISPs) or obligations to peer in the Cayman Islands before OfReg embarked on this consultation. As a result, local ISPs routinely route locally generated traffic (data) destined for local users through a third-party network or switching offshore to another country, all before it then returns and is delivered to the intended local user. This could drive up the cost of delivering service and also could make the traffic/data vulnerable to interception.

“At OfReg, we seek to protect the interests of consumers and the resiliency of our local networks and infrastructure,” said Sonji Myles, the acting executive director of ICT at OfReg. “Peering and the use of IXPs through balanced regulation encourages secure and efficient use of infrastructure and increases the attractiveness of the local digital ecosystem in support of facilitating investment, innovation and development for the country. This initiative is just one of many to come as we forge ahead in developing the digital economy of the Cayman Islands.”

In its final determination, which is now available for the public to see, the regulator has set out the obligations on ISPs to keep local internet traffic here and also establishes the regulatory measures it proposes to stimulate the entry of IXPs in the Cayman market. OfReg said that the establishment of peering obligations and IXPs aligns with its governing legislation, the Cabinet’s directive to ensure local internet communication remains onshore and government policy on the development of the ICT sector.

“We intend to promote public awareness of the contributions that peering and IXPs can make to the development of the Cayman Islands’ internet and its digital economy,” said OfReg CEO Malike Cummings. “The presence of IXPs is likely to reduce local dependence on digital infrastructure and enterprises outside of the jurisdiction. This, in turn, should generate cost savings for the local internet service provision, resiliency and improved internet performance for customers.”

He added that the regulator was committed to exploring and implementing appropriate regulatory frameworks that promote and enable growth and development in the ICT sector.

See the final report or determination document here.



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Category: Business, ICT, Politics, Private Sector Oversight

Comments (25)

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  1. Anonymous says:

    The time to have done this was 10+ years ago. Now that business has moved their IT to the cloud there is less on-island traffic.

  2. Anonymous says:

    $200k would provide free wifi in Cayman.

    One tower at the airport, west bay and east end. This is such a simple job. Everything is made so complicated here

  3. Anonymous In Cayman says:

    What does Sonji Myles a former low ranking cop and someone who couldn’t pass the Bar Exam t know about IXP or even ICT?

    Lord help us!

  4. WhaYaSay! says:

    Jeez! Maybe next OfReg may discover Smartphones?!?

  5. Anonymous says:

    About bloody time.

  6. Alden’s Corrupt Government says:

    Wow after 10 years of doing absolutely nothing it must be Election Time ??

  7. Anonymous says:

    What has “Off with ya leg” done for anyone? Prices of internet still some of the highest in the world.

  8. Anonymous says:

    Low orbit satellites like Starlink may be a viable solution aside from the needs of the gamers who desire low latency. Beta tests in very rural parts of North America are delivering impressive speeds for both download and uploads. Avoid the local infrastructure entirely.

    • Anonymous says:

      Should be coming to Cayman next year, 2022. You can sign up in advance here for only $99 to be the first to get the Starlink system. Fed up with waiting for our government to sort out the issues on the East End. Elon Musk will deliver what our government and local internet providers can’t be bothered with. 150mbps would be 50x faster than what I have now, and for less money too. https://www.starlink.com/

    • Anonymous says:

      i signed up for starlink as a beta tester several weeks ago, had an email back that they will start testing in this area in early 2022

    • Anonymous says:

      Cayman need to launch it’s own satellites.

    • Anonymous says:

      Starlink customers seeing ping of around 30-40ms perfectly fine most gamers. Ping from KY to Miami via fiber is 30ms. Soon come!

  9. Anonymous says:

    This is desperately needed. Right now the traffic is sent all over the place before it hits Florida.

    This gives crazy high latency and is unusable for things like gaming.

    Do a traceroute! It gets sent all over the world before it goes where it’s supposed to… something odd happening there.

    • Anonymous says:

      That, my friend, is why it’s called the internet. It’s no different in other places. Your gaming is going to go all over the place no matter what OfReg does in Cayman. What you need is for your local provider to give you the speed you paid for.

    • Anonymous says:

      Give an example? I just ran trecert on a handful of common websites and the first hit outside of Logic’s Cayman IP’s is invariably a miami server after 25/26ms. What do you call crazy high latency? Can’t say I’ve ever noticed it.

    • Anonymous says:

      Not to mention my porn freezes right at the critical moment

  10. Anonymous says:

    I frankly do not care how my internet is routed so long as it is fast. What is OfReg going to do to solve our real problem—-that the local companies do not deliver the speeds they advertise and bill us for? My second question is how are new local IXP’s going to save me money.? I am almost certain that Cayman doesn’t have enough local traffic to justify the cost of even one IXP. Instead, please make the local internet companies deliver what they promise.

    • Anonymous says:

      Was it really that hard to read or did you just read the title and went straight to the comment section? The newsletter clearly says the benefits of an IXP. Currently ISPs route your data to offshore IXPs which drive latency and thus reduces your advertised speed. A local IXP means any of your data can go straight to this IXP that is on island and essentially slashing the latency.

      Now I’m no ISP apologist but there’s only so much they can do when all the traffic has to first be routed to offshore locations, there’s nothing they can do about that. The Ofreg proposing an IXP on island is a really great thing for all ISPs and for consumers.

      • Anonymous says:

        Nearly all my traffic goes outside Cayman. It will always do that.

      • Anonymous says:

        Answer the poster’s question – how is this going to save us money? I 1000% guarantee you that the new local IXP service provider is going to charge a ridiculously exorbitant fee (protected and supported by OffReg) that we lose either way.

        BTW – ACC you better prepare yourselves once you see the OffReg person behind the IXP service.

      • Anonymous says:

        LOL. I’d suggest it’s a vanishingly tiny percentage of traffic that goes between users in Cayman to servers in Cayman that will benefit from not being routed via the US.

  11. Anonymous says:

    They cant even get CUC to carry fibre on their poles without it being a disaster, what hope they an do anything on this?

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