Peering basics: Public vs. private peering

When we make Leaseweb Service Status announcements, we often mention our peering connections. We assume that the readers of those messages technically understand peering. But as they say, assumption is the mother of all mistakes. Sometimes it’s good to start with the basics of things. In this blog, we’ll take a closer look at peering and examine the differences between public and private peering. 

What is peering?

So, what is peering? In its most simple form, it is defined as the interconnection of two different networks so they can exchange traffic between them. This means the traffic goes directly from one network to the other, allowing them to reach each other’s customers. As this is mutually beneficial for those involved, the network owners usually don’t charge each other to peer.  

Now, I should note that having many peering connections doesn’t mean that you are able reach the whole internet – you only reach the networks (and their customers) you peer with. This is why a quality network should also be connected to at least two transit providers (preferably tier 1 networks). However, transit providers charge a sizable fee, making peering a cost-effective alternative. 

Read More: To peer or not to peer – reflections about IP Interconnection from the Global Peering Forum 14 in Montreal 

Public vs. Private Peering

There are two types of peering – public and private: 

  1. Public peering is performed across a shared network called an Internet Exchange Point (IX or IXP). Through an Internet Exchange you can connect to many other peers using one or more physical connections, thereby optimizing the cost per peer when sending traffic to many different networks. Internet Exchanges often charge a port and/or member fee to keep their infrastructure intact. 
  1. Private peering is performed by creating a direct physical connection (usually consisting of one or more 10GE fibers) between two networks. The connection is made from only one network to another, for which you pay a set fee to the owner of the infrastructure that is used (such as a data center). This makes private peering a sensible option when you need to send large volumes of traffic to one specific network, as the cost per megabit goes down when more traffic is exchanged. 

Because of the way these types of peering are designed, each offers several (dis)advantages: 

Public Peering Private Peering
  • Efficient usage of ports
  • Hundreds of peers available at the larger IXs
  • Easy to administrate
  • New peers added instantly on a daily basis
  • Guaranteed capacity
  • Easy to monitor
  • More reliable than public peering
  • More secure than public peering
  • Port and/or member fees for the IX
  • Only cost-effective for large volumes of traffic
  • Takes more time to setup new peering connections


When you’re a network engineer, you’re constantly looking for fast and reliable ways to ensure data reaches its destination. As peering is a cost-effective solution for this fascinating puzzle, usually enabling us to offer you bandwidth at low prices. There are also other advantages to peering, which we will look at in the next peering blog. In the meantime, if you have any questions, don’t hesitate to drop me a line in the comments below. 

Read more: Network economics: more bandwidth for your buck 

Editor’s note: This blog post was originally published on 24 October 2012 and was updated on 1 November 2022.

  1. Andreas
    March 3, 2013 at 15:10

    Thanks for those highly interesting articles!
    How does public peering work in detail?
    Lets say I want to peer with 30 other small networks at an IX.
    So I pay a monthly fee to the IX, and geht a switchport in return.
    Then what?
    Do I automaticly peer with all other networks at that IX, all sharing the bandwidth of my port?
    Or do I have to put a 48 port switch in the IX somewhere, connect the uplinkport to my ‘IX-port’, and run 30 cables to the switches of my peering partners and ask all of them individually if they want to peer with me? Again all sharing the bandwidth of my IX-port?
    Are VLANs used somehow to reduce cable clutter?

    How does it work exactly?

  2. Grzegorz Janoszka (Network Design Engineer))
    Grzegorz Janoszka (Network Design Engineer))
    March 4, 2013 at 13:43

    An Internet Exchange is a big layer2 network. You get a switchport and an IP address from an Internet Exchange range. The rest is done using BGP. You can create BGP sessions to other members of the IX. With the help of route-servers, which are present at most exchanges, you don’t have to configure BGP sessions with all members. Most of them can be reached by just having sessions to route-servers.

    It might happen that not everyone wants to peer with you, but the majority will probably be willing.

  3. ogrzewanie
    May 2, 2014 at 11:16

    This is really interesting, You’re an overly skilled blogger.

    I’ve joined your rss feed and sit up for looking for extra of your
    magnificent post. Also, I’ve shared your site in my social networks

  4. sidd
    September 23, 2014 at 18:46

    Hi Grzegorz–

    Thanks for the article. Can you explain little more about the public and private perrings with an example. At our company we purchased a 45mbps circuit from an ISP and pay monthly charges to them- to connect to internet- will that be considered as Private peering or public peering.

  5. Rafal
    March 17, 2017 at 18:19


    In your case is not peering. Your company is a client/customer and you purchase ISP is your uplink provider that provides you with access to entire Internet.

    Peering is more about providing access to own network. So two compares A and B establish peering so company B have access to company B’s network and vice-versa. But Company A can’t reach entire Internet via company B.

    If you need internet access you need at least one uplink provider. And you pay to him a fee that covers ports infrastructure but also cost of taking your traffic to any place in the globe trough (multiple) upper-tire ISP (like ATT or Level3).
    Plus you may like to have multiple peers, which cost you only a port depreciation (amortyzacja). By doing so you reduce traffic that goes to uplink provider, so you need lower speed with him –> lower cosy of uplink.

    To give you a sense of cost savings, LINX allows you to connect to shared LAN at 1Gbps for free! (You have to pay 1200GBP/year for LINX membership. So ~500PLN/month for 1Gbps)

  6. iamthewold
    April 30, 2017 at 22:43


    I know you commented almost 3 years ago, but that would not be regarded as peering. You are paying for an internet connection, which goes through your ISP. Your ISP is then peering with others, in whatever way they have decided to peer.


  7. Laxmidhar Barik
    Laxmidhar Barik
    August 24, 2018 at 18:36

    What is the minimum bandwidth utilization is required for an ISP to establish the private peering. And how much costing it would be????

  8. Cableinternet-deals
    September 24, 2018 at 9:28

    You created some clear points there. I looked online for the topic matter and identified most guys will consent
    with your website.

  9. Internetserviceproviders
    September 25, 2018 at 7:49

    A lot of times it’s challenging to get that perfect balance between usability and visual appearance.

Leave a Reply

Your email address will not be published. Required fields are marked *