Significant reduction on telecommunication costs

Introduction

IXP enables autonomous systems exchange through peering. Peering is known as a method of
exchange between two networks free of charge, although in some cases there are peering contracts
including fees. Public peering is established when three or more clients decide to connect their
networks through one point. This public intersonnection point is called an Internet eXchange Point –
IXP. The part with which the autonomous system, hereinafter referred to as the AS, will establish
peering using an IXP depends on the IXP peering rule. Certain IXPs enable peering between all
participants, while others leave the option for the participants to decide with which client they will
peer. Establishing peering relation with other ISPs (or content provider) is usually due to reduction of
interconnection costs. Generally speaking, an IXP does not interfere with relations between
participants.