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What Is Peering? A Clear Definition and Why It Matters

Peering is a foundational concept in how the Internet works—but what does it actually mean?

In networking, peering refers to the voluntary interconnection of two or more Internet networks to exchange traffic directly, without relying on intermediary transit providers. This direct exchange improves performance, reduces latency, lowers costs, and enhances network resilience. Most peering arrangements are settlement-free, meaning no money changes hands between the networks involved.

 

Why Is Peering Important?

When networks do not peer, data often travels long distances through third-party transit providers, which can slow down connections and increase costs. Peering allows networks to route traffic locally and efficiently, resulting in faster, more reliable Internet experiences for users. [internetsociety.org]

Imagine sending a letter to a friend across town, but it first travels across the country and back. That’s what happens when networks don’t peer. With peering, the data stays local—just like the letter should.

 

How Peering Works

Peering has served as the primary method of exchanging internet traffic between networks for decades.

Connecting to an Internet Exchange allows you to establish peering with hundreds of other networks across a single physical port. Members can setup or remove bilateral peering sessions with networks without the need to reprovision circuits or order additional cross connects.

There are two main types of peering:

  • Public Peering: Multiple networks connect through a shared IXP platform.
  • Private Peering: Two networks connect directly via dedicated infrastructure.

At LINX, members can choose between bilateral peering (direct agreements with specific networks) or multilateral peering using LINX’s Route Servers, which simplify the process by enabling connections to many networks through a single BGP session. [linx.net]

 

Benefits of Peering

LINX offers peering services across the UK, US, and Africa, enabling members to:

  • Reduce latency and improve performance
  • Lower transit costs
  • Enhance network security and control of your network traffic
  • Connect to multiple networks via a single cross connect
  • Peer remotely through global carrier partners, no PoP, no problem

 

Peering vs. Transit: What’s the Difference?

IP transit is a service provided by Internet Service Providers (ISPs) or network carriers that allows a customer network to access the broader Internet. Essentially, it’s a paid arrangement where the transit provider agrees to carry traffic to and from the rest of the Internet on behalf of the customer. Unlike peering, which is typically settlement-free and involves the exchange of traffic between networks of similar size or reach, IP transit gives networks full global connectivity via the provider’s upstream routes.

Peering, on the other hand, is a mutual agreement to exchange traffic directly, often without fees. While transit offers global reach, peering provides cost-effective, high-performance local connectivity. [kentik.com]

 

Book a free consultation to see if peering is for you

 

 

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