Peering

Peering is a network arrangement in which independent networks exchange traffic directly, rather than through intermediary operators. This direct interconnection aims to improve performance, reduce latency, and lower transit costs by giving networks greater control over routing.

Peering can take several forms. Settlement-free peering exchanges traffic without payment, typically at an Internet Exchange Point using a public fabric. Paid peering involves compensation based on traffic volumes or capacity. Transit is a paid service for access to another network’s reach. Private peering is a direct interconnection between two networks, often via a dedicated fiber link in a data center.

Public peering at IXPs connects many networks through shared switches, sometimes with route servers to simplify configuration. Private peering provides higher bandwidth and lower latency for large exchanges, suitable for major networks or content providers.

Policy and economics shape peering. Networks negotiate terms, select peers, and may require traffic balance, minimums, or geographic presence. Peering can reduce transit costs and improve performance, but disputes may occur if traffic is perceived as unbalanced or if terms change.

Implementation relies on routing protocols such as BGP to exchange reachability and determine paths. Peering is a core element of Internet infrastructure, contributing to redundancy by diversifying paths and reducing reliance on any single provider.