IXPs, typically, are physical locations where different networks connect to exchange internet traffic via common switching infrastructure. They are responsible for interconnecting internet service providers (ISPs), content delivery networks (CDNs) such as Cloudfare, Akamai, over-the-top (OTT) players such as Netflix, Amazon Prime, DNS root servers, national and international telco networks and even social media networks like Instagram.
As per the Internet Society, India ranks number 2 in Asia on the IXP count metric. But it lags in penetration terms compared to Finland, Singapore, Australia and the UK. For instance, Finland and Singapore have 12.5 and 22 IXPs per 10 million people, respectively, whereas India has only 0.23 IXPs per 10 million people, according to Extreme Infocom.
Companies such as Extreme Infocom and DE-CIX India, though, have earmarked investments in the local IXP space. Experts see the sector initially fetching ₹10-15 crore in the next 2-3 years, but expect investments to jump 10-fold if regulatory hurdles are removed.
In the last two years, the number of peering members have nearly doubled from 550 in 2020 to 885 now, and the combined data carrying capacity of IXPs has grown from 10 Tbps to 25 Tbps, Internet Society data showed.
Accordingly, IXP players are doubling down on investments to catch this growth trajectory.”If regulatory hurdles are resolved, then (potential) investments could be 10 times the initial aforesaid figures (read: ₹ 10-15 crore),” said Raunak Maheshwari, executive director at Extreme Infocom, India’s leading IXP player, which has earmarked an investment of ₹5 crore by 2025.Another company, DE-CIX India has announced a dedicated data centre interconnect service, which will allow enterprises to interconnect data centres and multi-cloud environments. The company aims to increase investments by 75% and double its turnover in 24 months.
“DE-CIX India holds a national long distance (NLD) licence that enables us to provide comprehensive, end-to-end management solutions to our customers without relying on external assistance, ensuring greater efficiency, control and cost-effectiveness,” said Sudhir Kunder, chief business officer at DE-CIX India, which operates in 36 points of presence (PoPs) across five cities, handling data throughput of 11Tbps.
Over the next two years, the company plans to increase its PoP footprint by 50%. By entering the enterprise space through partnerships with system integrators and alliance partners, DE-CIX India is broadening its services portfolio.
Extreme Infocom’s Maheshwari, in turn, said with citizens continuing to demand more data, it is essential to bring data storage, such as data centres and CDN networks, closer to the service providers’ networks and consumers.
