Function Internet exchange point

the main building of london internet exchange (linx)

the primary purpose of ixp allow networks interconnect directly, via exchange, rather through 1 or more third-party networks. advantages of direct interconnection numerous, primary reasons cost, latency, , bandwidth.

traffic passing through exchange typically not billed party, whereas traffic isp s upstream provider is. direct interconnection, located in same city both networks, avoids need data travel other cities (potentially on other continents) 1 network another, reducing latency.

the third advantage, speed, noticeable in areas have poorly developed long-distance connections. isps in these regions might have pay between 10 or 100 times more data transport isps in north america, europe or japan. therefore, these isps typically have slower, more limited connections rest of internet. however, connection local ixp may allow them transfer data without limit, , without cost, vastly improving bandwidth between customers of 2 adjacent isps.