London Internet Exchange cuts port fees by 40%

London Internet Exchange cuts port fees by 40%

The London Internet Exchange (LINX) has reduced the cost of peering in London for the second time in seven months, cutting 40% off its LON2 port fees and 10% on its LON1 network, effective August 1, 2016.

The two London LANs provide LINX members with an extra level of fault tolerance, the logic being that both systems shouldn't develop the same fault at the same time. The European provider of internet interconnect services has driven down connection costs to its network year-on-year for a decade.

Capacity has received internal data from LINX on its prices from the last decade. The table doesn't have the most recent numbers included but "it clearly shows the long-term downward trend on port fees in London," a LINX spokesperson told us.

Capacity has also learnt that the last time LINX carried out a mid-year price cut was in July 2009 on 1GE and 10GE ports. At that time, LINX had 334 members who benefitted from a 20% saving in membership costs plus up to a further 7.5% reduction on 1GE and 10GE port fees. Those prices followed those introduced in September 2008 when 1GE and 10GE ports were reduced by up to 25%. It's important to note that LINX had a different financial year at that time so it depends how you define 'mid-year'.

“The reduction in pricing follows an extensive review of our LON2 infrastructure which began in November last year. This was in preparation of a major network upgrade and we are now far enough into that process to be sure we have a path to a future technical solution at a significantly lower cost, “said John Souter, CEO of LINX.

LINX's regional exchange, IXManchester, is also lowering its prices. IXManchester is the UK's largest Internet Exchange outside of London and its port fees will also be cut to match those of the new LON2 pricing.

Souter added: "As a mutual, our customers are also the owners of the company, which means that our entire focus is on improving the network and providing better value for them. We will continue to re-invest in the network and bring costs down for our members, as we have for over twenty years. Because we are a mutual, we do not have to compromise this commitment in order to pay shareholder dividends".

In February this year, LINX launched a PoP at Virtus’ LONDON2 data centre facility.

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