
Peering arrangements
Peering arrangements are agreements between internet networks that allow them to connect and exchange data directly, rather than routing traffic through third-party networks. This mutual setup helps improve internet speed, reduce latency, and lower costs for both parties. Think of it like two neighboring utilities sharing a pipeline to deliver electricity more efficiently. Peering can be settlement-free (no money exchanged) or paid, depending on the traffic volume and agreement terms. These arrangements are essential for ensuring smooth, fast, and reliable internet connectivity across different networks.