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Answer Posted / manpreet singh
Peering is the arrangement of traffic exchange between
Internet service providers (ISPs). Larger ISPs with their
own backbone networks agree to allow traffic from other
large ISPs in exchange for traffic on their backbones. They
also exchange traffic with smaller ISPs so that they can
reach regional end points. Essentially, this is how a
number of individual network owners put the Internet
together. To do this, network owners and access providers,
the ISPs, work out agreements that describe the terms and
conditions to which both are subject. Bilateral peering is
an agreement between two parties. Multilateral peering is
an agreement between more than two parties.
Peering requires the exchange and updating of router
information between the peered ISPs, typically using the
Border Gateway Protocol (BGP). Peering parties interconnect
at network focal points such as the network access points
(NAP) in the United States and at regional switching
points. Initially, peering arrangements did not include an
exchange of money. More recently, however, some larger ISPs
have charged smaller ISPs for peering. Each major ISP
generally develops a peering policy that states the terms
and conditions under which it will peer with other networks
for various types of traffic.
Private peering is peering between parties that are
bypassing part of the public backbone network through which
most Internet traffic passes. In a regional area, some ISPs
exchange local peering arrangements instead of or in
addition to peering with a backbone ISP. In some cases,
peering charges include transit charges, or the actual line
access charge to the larger network. Properly speaking,
peering is simply the agreement to interconnect and
exchange routing information.
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