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What is ISP Peering?

ISP peering is when two internet service providers (ISPs) agree to connect their networks directly and exchange traffic between their customers without paying a third-party transit provider.

Instead of sending data through an upstream provider, two ISPs create a direct pathway. This usually happens at shared facilities called Internet Exchange Points (IXPs).

There are two main types of peering: public and private.

  • Public peering happens at an IXP, where multiple ISPs connect to the same shared infrastructure. It’s efficient for connecting many networks at once.
  • Private peering is a dedicated, direct connection between two ISPs, used when traffic volume is high (such as between large networks).

Peering is important because it lowers latency, therefore providing faster connections. It also reduces costs and leads to better performance as the ISPs have more control. Large networks (often called Tier 1 providers) rely heavily on peering to exchange traffic globally without paying for transit.