Farzaneh Badiei and Angie Orejuela
When individuals want to use services on the Internet—for example, browse a website or send an email—various networks handle these requests. The requests go through networks in the form of packets, and that makes up what we call Internet traffic. Network operators are in charge of carrying this traffic. Through Internet peering, networks agree on helping one another to handle the traffic.
Economic sanctions can potentially impact actors involved with Internet peering. In this blog, we outline the potential impact of sanctions on Internet peering and the various actors involved. This piece is a work in progress, and as a part of the SancNet project, we are always open to feedback, corrections, and additions. A link to an online form for feedback can be found here and in the concluding remarks of this blog.
Revocation of membership from Internet Exchange Points/De-peering
When specific sanctions apply to individuals with formal roles in telecommunication services (for example, the CEO of a telecom operator), the Internet Exchange Point subject to the sanctions regime in question, will have to terminate the network operator’s membership. This can have the following consequences:
- De-peering has consistently been recognized as an extreme step, as it means customers might not reach specific sites on the Internet. (Werbach, Kevin. “Only connect.” Berkeley Tech. LJ 22 (2007): 1233.)
- If the network operator is large and serves smaller network operators, those network operators are also affected. This will affect the quality of access and create latency. Some argue (as reported in Russian state-owned media) that it does not impact their services. Such network operators claim they can have access to global traffic through Asia. But there are restrictions. For example, it is difficult to peer with Chinese operators due to their domestic restrictions on Internet traffic.
- Network operators that are sanctioned might carry Internet traffic of other non-sanctioned countries. In such a case, the sanctions (and revocation of membership from IXPs) can affect other network operators based in other countries.
- When revocation of membership from a well-established Internet Exchange Point happens, the individual members of that exchange point will likely stop peering with the sanctioned network bilaterally.
Peering and Sanctions in the US and EU
In the US, the Office of Foreign Assets Control (OFAC), in its FAQ, has clarified that sanctions in case of peering do not apply to the Cuban telecommunication operator. This is because of a specific regulation that authorizes “the exportation, reexportation, directly, or indirectly to Cuba of services incident to the exchange of communications over the Internet.” (31 CFR (Electronic Code of Federal Regulation) § 515.578 Exportation, reexportation, and importation of certain internet-based services; importation of software.)
For peering and transit in the EU, some advocated an “Internet carve-out” from EU 269/2014 that would blunt the effects on the Internet. The council adopted an amendment decision and inserted Article 6c, which provides that
“Article 2 shall not apply to funds or economic resources that are strictly necessary for the provision of electronic communication services by Union telecommunication operators, for the provision of associated facilities and services necessary for the operation, maintenance and security of such electronic communication services, in Russia, in Ukraine, in the Union, between Russia and the Union, and between Ukraine and the Union, and for data centre services in the Union.”
While some interpretations might make this amendment applicable to peering, other perspectives might differ. Legal counsels might argue that this Internet carve-out is not specific enough to include all the services, including transit and peering. Also, because peering usually involves many jurisdictions, providing carve-outs for just one or two countries (like the case of Cuba) or even a region does not solve the problem.
Cache Servers
Cache servers are a means by which much of the most popular content available on the Internet is always “close” in a network sense. These services enable the web, in particular, to satisfy enormous demands. Cache servers do not necessarily serve a peering function, but they are essential for cloud providers and peering locations, as well as for the quality of access to the Internet. They are even sometimes critical for having meaningful access to the Internet. A cache server temporarily stores information on a local network, making browsing faster. Cache servers are usually installed in data centers, ISPs, and peering locations. Trade restrictions, export, and import controls, and sanctions could impact the availability of these servers. There were two reported cases of Google shutting down its caching servers in two Russian ISPs. Google (reportedly) stated that the reason was a change in legal practices and compliance with sanctions. There are reports about Cache servers being unavailable in Afghanistan as well.
The Transborder Effect of Sanctions
Sanction regimes are designed in a way that could impact and apply to third parties that are not in sanctioned and sanctioning jurisdiction. This can especially apply to network operators that are located in areas with neighboring sanctioned countries.
Concluding Remarks
These are only a few preliminary and potential findings about the effect of sanctions on the operation of Internet Exchange Points and the provision of peering. If you would like to reach out and tell us about the problems you have faced, please do so by filling in this form. You can remain anonymous.
