Peering is the connection of one network operator to another network operator to exchange traffic originated by each network operator.

The vast majority of peering does not attract traffic charges - it is known as “settlement-free peering”.

Peering takes place in two forms:

1. Private peering
2. Public peering

Private peering is where there is a private connection between the two network operators for the purpose of exchanging traffic.

The physical interconnect is owned jointly by the two operators, and can range from a simple fibre or copper cross-connect in a datacentre, to a long haul link (fibre optic or wireless) between each operators data centre.

The two operators who are peering with each other manage the link, the traffic levels, and what routes are reachable by the other operator.

Private refers to that the link is entirely a business relationship between the two operators - there is no third party involved in conducting this interconnect.

Public peering takes place at a public peering point, commonly known as an Internet Exchange Point (IXP).

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