How networks exchange traffic.
WHAT TRANSIT IS
Paying a larger network to carry your traffic to the entire internet.
WHAT YOU RECEIVE
Reachability to everywhere, through that provider.
WHAT PEERING IS
Two networks exchanging traffic directly, usually for traffic between their own customers only.
WHAT SETTLEMENT-FREE MEANS
Neither pays the other.
WHEN THAT IS AGREED
When the exchange is roughly balanced and mutually beneficial.
WHAT PAID PEERING IS
A direct connection where one party pays, typically where the benefit is unequal.
WHY PEERING IS PREFERRED
Lower cost Lower latency, since the path is shorter Less dependence on third parties More control over the path
WHAT PEERING DOES NOT PROVIDE
Reachability beyond that network and its customers.
WHAT THAT MEANS
Peering supplements transit; it does not replace it.
WHAT TO ASK A HOSTING PROVIDER
How many transit providers they have Who they peer with Whether they are present at local exchanges
WHY THOSE QUESTIONS MATTER
They determine how quickly local visitors reach you, and how resilient the connection is.