Editing Internet exchange point (section)

==Function==
[[File:TelehouseDocklands.jpg|thumb|left|Initial location of the [[London Internet Exchange]] (LINX): [[Telehouse Europe|Telehouse Docklands]]]]

The primary purpose of an IXP is to allow networks to interconnect directly, via the exchange, rather than going through one or more third-party networks. The primary advantages of direct interconnection are cost, [[Network latency |latency]], and [[Bandwidth (computing)|bandwidth]].<ref name=prescriptive-policy-guide />

Traffic passing through an exchange is typically not billed by any party, whereas traffic to an ISP's [[upstream (networking)|upstream]] provider is.<ref>{{cite book |author1=Ryan, Patrick S. |author2=Gerson, Jason |title=A Primer on Internet Exchange Points for Policymakers and Non-Engineers |date=11 August 2012 |publisher=Social Science Research Network (SSRN) |ssrn=2128103}}</ref>  The direct interconnection, often located in the same city as both networks, avoids the need for data to travel to other cities—and potentially on other continents—to get from one network to another, thus reducing latency.<ref name=oecd-market-developments>{{cite journal |last1=Woodcock |first1=Bill |author-link=Bill Woodcock |last2=Weller |first2=Dennis |title=Internet Traffic Exchange: Market Developments and Policy Challenges |publisher=[[OECD]] |journal=Digital Economy Papers |series=OECD Digital Economy Papers |date=January 29, 2013 |doi=10.1787/5k918gpt130q-en |url=http://www.oecd-ilibrary.org/science-and-technology/internet-traffic-exchange_5k918gpt130q-en |access-date=10 August 2021 |archive-date=10 August 2021 |archive-url=https://web.archive.org/web/20210810194458/https://www.oecd-ilibrary.org/science-and-technology/internet-traffic-exchange_5k918gpt130q-en |url-status=live |doi-access=free }}</ref>

The third advantage, speed, is most noticeable in areas that have poorly developed long-distance connections. ISPs in regions with poor connections might have to pay between 10 or 100 times more for data transport than ISPs in North America, Europe, or Japan. Therefore, these ISPs typically have slower, more limited connections to the rest of the Internet. However, a connection to a local IXP may allow them to transfer data without limit, and without cost, vastly improving the bandwidth between customers of such adjacent ISPs.<ref name=oecd-market-developments />

Internet Exchange Points (IXPs) are public locations where several networks are connected to each other.<ref>{{cite book | url=https://books.google.com/books?id=IM-Y2W0RIF0C&dq=tier+1+peering&pg=PA293 | title=Network Routing: Algorithms, Protocols, and Architectures | date=19 July 2010 | publisher=Elsevier | isbn=978-0-08-047497-7 }}</ref><ref>{{cite book | url=https://books.google.com/books?id=IM-Y2W0RIF0C&dq=internet+exchange+point+tier+1&pg=PA291 | isbn=978-0-08-047497-7 | title=Network Routing: Algorithms, Protocols, and Architectures | date=19 July 2010 | publisher=Elsevier }}</ref> Public peering is done at IXPs, while private peering can be done with direct links between networks.<ref>{{cite book | url=https://books.google.com/books?id=vXZODwAAQBAJ&dq=tier+1+peering&pg=PA156 | title=Information Network Engineering | date=20 July 2015 | publisher=株式会社 オーム社 | isbn=978-4-274-99991-8 }}</ref><ref name="Springer">{{cite book | url=https://books.google.com/books?id=MgDQDwAAQBAJ&dq=tier+1+peering&pg=PA88 | title=Internet Computing: Principles of Distributed Systems and Emerging Internet-Based Technologies | isbn=978-3-030-34957-8 | last1=Sunyaev | first1=Ali | date=12 February 2020 | publisher=Springer }}</ref>