PSINet gets ultimatum from C&W

NEWS Cable and Wireless (C&W) is threatening to axe its free peering agreement with cash-strapped PSINet unless the troubled ISP drums up more traffic within the next 60 days. Connections between the telco and PSINet's network have only just been restored after C&W severed the link because the ISP failed to meet traffic quotas. The squabble left thousands of customers without email and web access for up to four days last week. The connection was restored late on Tuesday, but now the clock is ticking for PSINet. Failure to deliver the required volume of traffic will mean the ISP will have to cough up peering fees. A spokesman for C&W UK said: "We have been in ongoing discussions with PSINet, but it is up to them to come to a resolution within 60 days. If not, we will have to negotiate a new deal." The incident highlights the lack of regulation in the internet access market, an issue that could seriously hamper long-term growth, according to Ovum analyst John Delaney. While the move to fee-based peering agreements is becoming the norm, an unregulated market could allow top tier companies such as C&W to monopolise what is a rapidly shrinking sector, he said. "There are IP backbone providers in the market that are exercising power that is detrimental to the market. In the long-term they will actually depress rather than accelerate growth," he argued. The outages are just the latest in a long tale of woe for PSINet. The company filed for bankruptcy protection last week, and was recently delisted from the Nasdaq index.