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Internet Service Providers and Peering
Internet Peering remains one of the most important and effective ways for ISPs to improve the efficiency of their operation. Peering is defined as “a business relationship whereby ISPs reciprocally provide connectivity to each others’ customers”. ISPs seek peering relationships primarily for two reasons. First, peering decreases the reliance on and therefore the cost of purchased Internet transit. As the single greatest operating expense, ISPs seek to minimize these telecommunications costs. Second, peering lowers inter-Autonomous System (AS) traffic latency. Peering traffic exchanged direct between two peering ISPs is likely to take the lowest latency path.
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