Peerings

The term “peering” refers to the joining of computer networks of equal rank for the purpose of exchanging data, e.g., between two Internet access providers.

Data is exchanged in a cost-neutral manner (without mutual payment claims) between providers of (usually) the same size, regardless of the origin of the data packets. For this purpose, a so-called “peering agreement” is usually concluded, which contractually regulates the mutual use.

However, it is quite possible for a large provider (Tier 1) to exchange data with a smaller provider (Tier 2), either because it can benefit from this itself or because it can charge the smaller partner money for its services (paid peering).

Regular indirect data transfer between providers of different sizes, on the other hand, is often billed according to data volume / bandwidth and is called transit.

 

Why Peerings?

Peerings at a public Internet exchange, such as the Rheintal IX, enable Internet service providers, network service providers and content providers to exchange their data traffic with each other on a free-of-charge basis.

The exchange of data traffic via a regional Internet Exchange, such as the Rheintal IX, offers the advantage of low latency times as well as the saving of own, cost-intensive fiber optic connections to larger Internet account points such as Frankfurt, Zurich or Vienna.

As an Internet Service Provider, your customers and users benefit from fast and regional connections.

 

Technology

Data exchange between providers usually takes place via peering points (PP) or Internet exchanges (IX) (also called Internet nodes), to which a large number (several hundred) of other subscribers can be connected.

The number of possible peering agreements at an Internet node grows with the square of the number of connected subscribers. A table representing all peering agreements is therefore referred to as a peering matrix (n*(n-1) possible entries). Routing information is exchanged via the Border Gateway Protocol (BGP).

Source: http://en.wikipedia.org/wiki/Peering