Differences

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--- peering-toolbox:why-peer [2022/08/26 15:11] – [Access to Content] philip
+++ peering-toolbox:why-peer [2023/04/30 14:30] (current) – [Costs] philip
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 ===== Costs =====
+(UPDATED)
 The commercial part of the Internet is highly competitive with many network operators vying to provide the highest quality service to their end users at the lowest possible cost.
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 Peering has no traffic charges, and so the more peering an operator can achieve, the lower the cost of traffic charges paid for transit. This reduction in operating expenses (OpEx) means better value Internet access for customers, or more financial ability to invest in newer/bigger/better infrastructure for the network operator, or hiring more technically skilled staff, or a combination of all of these.
+**Note**: in some parts of the Internet it is actually cheaper to outsource peering by buying cheap transit. Quite often the operational overhead, the cost of ports and cross-connects, the IXP membership fee (not to mention paid peerings) makes the cost of peering quite often comparable with cheap transit. Here the operator has to weigh up the benefits of peering (discussed in the following sections) versus delegating all those to the cheap transit provider.
 ===== Latency =====