Level(3) and Cogent re-peer

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Cogent and Level (3) have reached some sort of agreement and so L3 won't be depeering Cogent, as they had threatened to do November 9th.
BROOMFIELD, Colo. and WASHINGTON, Oct. 28 /PRNewswire-FirstCall/ -- Level 3 Communications (Nasdaq: LVLT - News) and Cogent Communications (Amex: COI - News) today announced that the companies have agreed on terms to continue to exchange Internet traffic under a modified version of their original peering agreement. The modified peering arrangement allows for the continued exchange of traffic between the two companies' networks, and includes commitments from each party with respect to the characteristics and volume of traffic to be exchanged. Under the terms of the agreement, the companies have agreed to the settlement-free exchange of traffic subject to specific payments if certain obligations are not met.

The modified arrangement is designed to mitigate any impact to customers' Internet connectivity as it sets forth an agreed process to protect customers upon the expiration of the peering relationship, or upon violations of the agreement that are not remedied in accordance with the revised agreement. Those protections include advance written notice to the customers of each party upon termination of the agreement, as well as terms assuring the continued exchange of traffic for a reasonable transition period.

The specific terms of the agreement are confidential.

There's been a bunch of speculation about what exactly the terms of the agreement are, but of course they're confidential. Even if Cogent is having to make fairly routine payments to Level(3) (notice that part about "subject to specific payments"), it's easy to believe that this is a desirable outcome for them. As I noted previously, it's very attractive to be able to claim that they're a Tier 1 provider, even if this means making the occasional semi-secret payment.

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