Generally, the Internet appears as a global set of interconnected networks that exchange data and information. IP Transit is essential to tier these networks together. If you own a business that requires a capable Internet connection, you probably know about the final results of IP Transit. Understanding the core of IP Transit gives you more insights into how your business receives access to the Internet network. Today, we`ll introduce you to what IP Transit services are, and how do IP Transit providers work.
Definition of IP Transit
IP Transit is defined as a service where an ISP, or Internet service provider, enables traffic to pass through networks to reach its destination. If you want to receive access to any Internet routes, a connection to all autonomous systems is required. Users can not usually perform this task, so the services of an ISP are vital since providers operate a solution to reach any Internet network. Many users might not know that when they send or receive information on the Internet, they should pass across several networks to get the point. IP Transit is important to ensure better capacity for an Internet connection, too.
Tiers of IP Transit providers
1. Tier 1
Tier 1 providers offer broad global coverage by acting with each other and forming the so-called backbone of the Internet. There are around six Tier 1 networks that tie in the whole global Internet network. While these providers peer with each other, they can also require a fee for access to their network. Tier 1 providers, like AT&T and Level3, can direct a request to any point in the world.
2. Tier 2
Tier 2 providers ensure more extensive networks and access to multiple data centers and facilities. Like Tier 1 providers, Tier 2 providers also peer with each other to avoid payments for access to a Tier 1 network and expand the area of their data delivery. The most well-known Tier 2 providers are Netflix and Amazon.
3. Tier 3
Tier 3 providers are considered local vendors with a small client base. These providers commonly buy not large portions of IP Transit in Tier 2 providers. It is more relevant for them to omit higher costs in Tier 1 providers.
IP Transit prices
The costs for IP Transit mainly depend on the providers themselves and are based on the direct usage. There is tiered using or the bills with flat-rate. If your business requires large traffic amounts for an extended period, it would be better to get a flat-rate plan. This way, you will be charged for the connecting speeds instead of the utilized bandwidth. On the other hand, tiered pricing depends on the use of bandwidth. The prices will be dependent on the region of your location, as well.