Here are the some of the business benefits of IXPs
1. Lower Transit Costs
Transit fees are one of the largest costs for most ISPs: a peering relationship at lower cost can make a big difference to the bottom line.
2. Lower latency
Customers of peered ISPs experience lower latency than if they had to pass through several relays of transit providers for local traffic.
3. Increased usage revenues
Lower latency encourages greater bandwidth use. For ISPs who bill according to usage, this means greater revenues.
4. More and better services
Peering effectively makes more bandwidth available for the same cost this encourages ISPs to introduce new value-added services.
5. Increased customer satisfaction
Because of all the above!
Moreover, other technical and economic benefits for the local Internet community:
- By keeping local traffic local and avoiding international links, local operators reap substantial cost savings and thereby extend such savings to the local users community.
- Significantly improve local Internet performance Better user experience.
- Internet Exchange is not limited to fixed data or traditional ISPs; it can serve a very diverse and unique mix of IP communities; including international carriers, mobile operators, content providers, Voice over IP parties, application providers, hosting companies, TV broadcasters and other related businesses overall economic achievement.
- In cases of disasters and complete blackouts from global Internet connectivity, the IXP provides for local traffic exchange high availability.
- Establish a strong platform for other country level services such CTLD name servers further independence and resiliency.