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Level 3, Cogent Settle Peering Spat. 2005-10-28, HostMan.biz Level 3 (level3.com) and Cogent Communications (cogentco.com) said on Friday that they had agreed to a new peering arrangement, ending a nearly month-long dispute. Earlier this month Level 3 cut its network off from Cogent because it was unhappy with their peering arrangement. Like most tier-1 service providers, Level 3 and Cogent exchange traffic freely, but Level 3 had become dissatisfied with the arrangement because it believed it was carrying more of the burden - in effect subsidizing Cogent's business. Likely influenced by an unhappy customer base, Level 3 re-connected to Cogent after a few days, but said it would disconnect again on November 9 if the two parties did not renegotiate a new peering arrangement. The new deal announced on Friday allows for the continued free exchange of Internet traffic. However, there are commitments regarding the characteristics and volume of traffic and compensatory provisions are in place if certain obligations are not met. The new arrangement also includes terms that protect customers in the event the agreement is violated or terminated. As a result of the agreement, Level 3 will not proceed with its stated intention of disconnecting from Cogent on November 9.

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