Mongolia

The case of Mongolia demonstrates that ISP cooperation with tacit support from governmental authorities can lead to the rapid and successful establishment of an IXP in a developing country. In January 2001, a group of leading Mongolian network operators met in Ulaanbaatar to explore the creation of a national IXP. At the time, all Mongolian ISPs were interconnected via providers in the United States or Hong Kong. As a consequence, satellite latencies amounted to a minimum of 650 milliseconds (over half a second) for each packet of data in each direction. Costs were needlessly high and not surprisingly, very few Mongolian Internet business services were hosted within Mongolia.

By 2001, this situation had created sufficient incentive for Mongolia's three leading Internet providers to agree to develop an independent exchange. Within 3 months of initiating the project, the three ISP members launched MIX in April 2001. By March 2002, the MIX had six ISP members with steadily increasing traffic between them. Local latency was initially reduced to less than 10 milliseconds per transaction (compared with a minimum of 1300 milliseconds in the pre-MIX days).