Why It Pays to Buy IP Transit Instead of Building Your Own International IP Network
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Overview: An Internet Service Provider wishing to provide international Internet connectivity to end-users is faced with a difficult decision as to, should they build their own IP network and peer with other ISPs, or buy the global IP Transit service. IP Transit is a way of outsourcing the production and operation of the end-user Internet service. In recent years, there has been a tendency among ISPs to abandon the IP Transit service in favor of solutions based on extending own network capacity and signing peering agreements with other ISPs. The change has been driven mainly by low capacity prices, particularly in key markets such as the U.S. and Western Europe.