Settlement-Free Interconnection Policy for AS1257

Version 15, 23 August, 2021

This document describes the criteria that TELE2 has established for engaging in settlement-free interconnection (SFI) with other networks using its backbone AS1257 network, also commonly referred to as peering. The policy seeks to establish transparent rules for exchanging traffic between TELE2’s AS1257 and other IP networks where such exchanges offer equitable benefits.

In addition to the criteria set forth below, TELE2's ability to enter into peering arrangements with a particular peer are subject to normal commercial and technical considerations including the applicant’s financial stability and the availability of peering ports and TELE2 backbone capacity in particular locations. TELE2 reserves the right to solely approve or decline any application for settlement-free interconnection.

TELE2 conducts periodic internal reviews of its Peering Policy to ensure that the criteria for peering eligibility are consistent with possible changes in traffic and reach of TELE2’s AS1257 over time. This Peering Policy will be revised on a regular basis to reflect those changes. Existing peering partners may be asked at times to re-qualify for continued peering.

  1. Definitions

  2. Settlement-Free Interconnection, SFI: Settlement-Free Interconnection is the establishement of physical interconnects between two networks and the exchange of traffic in between the networks over those interconnects without the requirement of any settlement. This exchange is strictly limited to traffic from the one network or its customers and destined for the other network or its customers. Traffic is exchanged on a bilateral basis between peering routers and is governed by BGP-4 peering sessions. Also commonly referred to as peering.

    Peering: See Settlement-Free Interconnection, SFI

    Transit: Indicates a settlement based customer/provider relationship between networks, where one network uses the other network to provide upstream connectivity.

    Paid peering: Indicates a settlement based customer/provider relationship between networks, where one network uses the other network to reach the latter network’s customers

    Route announcement: The means by which two peering partners notify each other of address information in order for the peering partners to exchange Internet traffic. The current means is by the BGP-4 protocol.

    Network: A network or Autonomous System (AS) is defined as a group of connected Internet Protocol (IP) routers that are under one administrative control.

    Private Network Interconnect, PNI: Dedicated link on which peering traffic is exchanged between just two networks. Sometimes referred to as “Private peering”, as opposite to “Public peering” over a shared medium at an Internet Exchange point.

    Market: An area or country in which a company may conduct business. Typically represented by a group of states in the US or a country or group of countries in Europe and the rest of the world.

  3. Network Infrastructure & Operational Requirements

    1. Each party must operate a fully redundant network capable of handling a simultaneous single-node outage in each network without significantly affecting the performance of traffic being exchanged.
    2. Each party must establish and maintain interconnects of enough capacity to sufficiently support the exchanged amount of traffic, even in case of single link failures and at geographically dispersed locations to ensure robustness and mutually acceptable latency.
    3. The applicant shall operate a twenty-four hour, seven-day-a-week (24x7) Network Operations Centre (NOC)
    4. Peer shall have a reasonably low peak-to-average ratio and must not exceed a traffic ratio of 2:1 for traffic into TELE2 : out of TELE2, measured on a 95th percentile monthly basis.
    5. Existing peers whose egress to ingress ratio violates the above criteria are required to cooperate with TELE2 in implementing best-exit routing or other suitable measure to balance the cost of transporting traffic.
    6. The applicant shall, upon request, provide a readable hard or soft copy map of its network, showing detailed network topology and current operational IP capacity between the network nodes.
    7. TELE2 considers IPv4 and IPv6 as a whole.
    8. Publically exchanged traffic exceeding 10% of the total port capacity at a public Internet Exchange point shall be replaced by a PNI.
    9. To obtain a comprehensive and meaningful representation of the expected peering traffic exchange, TELE2 may require an applicant to submit to a four (4) week peering trial period at the applicant’s full expense. TELE2 will use the trial period to verify compliance with all applicable policy parameters. The exchange of peering test traffic shall take place at preprovisioned ports at certain TELE2 locations. If the applicant is a TELE2 transit customer, existing transit connections can be reconfigured as peering connections to support paid peering trial. TELE2 will not waive any related charges during the test period.
    10. Tele2 will not enter into a peering relationship with customers of existing peering partners.
    11. A party cannot, at the same time, be both a transit customer of TELE2 and a peering partner.
  4. Interconnection Requiremens

    • Pan-European Requirements

      1. Geographic scope: The applicant must be present and conduct business, including having a significant customer base, in at least three markets. It is expected that the applicant will originate a substantial amount of traffic from within each market.
      2. Cities - Central European market
        • Frankfurt
        Cities - Eastern European market
        • Riga
        • Tallinn
        • Vilnius
        Cities - Northern European market
        • Copenhagen
        • Malmoe
        • Stockholm
        Cities - Southeastern Europe
        • Zagreb
        Cities - Western European market
        • Amsterdam
        • London

      3. Interconnect capability: The applicant must interconnect and exchange traffic with TELE2 over a minimum of four interconnects in at least three diverse markets. Additional interconnects might be required to meet redundancy and latency requirements with regard to the respective networks footprint. Interconnection bandwidth must be at least 10Gbps at each interconnection point.
      4. Backbone capacity: The applicant must operate a backbone of 100Gbps or greater active bandwidth between eight (8) or more geographically dispersed cities.
      5. Traffic volume: The aggregated traffic sent to or received from AS1257 at peak time should be no lower than a two hourly average of 8Gbps.
    • Routing Requirements

    • Each applicant shall meet the following requirements with respect to routing:

      1. The applicant shall register routes and routing policy with a TELE2 recognised Internet routing registry, i.e. RIPE, ARIN, APNIC, or RADB. The applicant shall announce only those registered routes.
      2. The applicant shall not establish a route of last resort, i.e. default route, or any other static routes directed at TELE2.
      3. The applicant shall announce only its own and customer routes to TELE2 AS1257. It should not announce any routes from any of its other peers or upstreams. Likewise, the applicant shall only announce TELE2’s routes to itself and its customers.
      4. The applicant shall see to that the peering interconnection is always the best-preferred path between the both networks, unless otherwise is mutually agreed upon.
      5. The applicant shall announce the same routes at all interconnect points, unless otherwise is mutually agreed upon.
    • General Policy, Legal & Contractual Requirements

      1. This Policy may be modified, replaced, or discontinued by TELE2 at any time at TELE2’s sole discretion. Any such decision made by TELE2 concerning this Policy will be final, binding, and conclusive.
      2. Non-exclusivity. Any agreement about settlement free peering according to this Peering Policy shall not prohibit or restrain either party’s entry into any separate similar or dissimilar contract or agreement with one or more third parties.
      3. All applicants must be prepared to enter into TELE2’s standard written peering agreement to establish peering.
      4. The applicant agrees to abide by a Non Disclosure Agreement with TELE2, if such arrangement is regarded as necessary.
      5. Neither party will apply port, service, or other charges to the other party.
      6. Each party will bear its network cost. Expenditures for private interconnections will be shared between TELE2 and the applicant.
      7. All requests for settlement-free interconnection should be submitted to TELE2 via e-mail at