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Last updated
July 6, 2026

BGP Peering: How Networks Exchange Traffic

Nicolas Rios
Nicolas Rios

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Two networks want to exchange traffic. They can pay a middleman to carry it, or they can connect and swap it directly. That direct arrangement is BGP peering, and it shapes the path every packet takes, including the AS paths you see in routing data. Here is how peering works, the two forms it takes, and how to read a network's peering footprint.

What is BGP peering?

BGP peering is an agreement between two autonomous systems to connect their networks and exchange routes using BGP. Each side announces its own prefixes, and usually its customers' prefixes, to the other. Traffic between the two networks then flows across the direct connection instead of through a paid intermediary.

Peering is typically settlement-free: neither side pays the other, because both benefit from shorter paths and lower transit bills. Each network involved is identified by its ASN, and the session between them is configured router to router.

Public vs private peering

Peering comes in two physical forms. Public peering happens at an internet exchange point, a shared switching fabric where one port lets you peer with many networks at once. It is the efficient way to pick up lots of smaller peers. Private peering is a dedicated cable or interconnect between exactly two networks, used when the traffic between them is heavy enough to justify its own link, for example between a large ISP and a streaming platform.

Most sizable networks do both: public peering for breadth, private peering for the handful of relationships that carry most of the volume. For how exchanges fit into the bigger picture, see Tier 1 networks, transit, and IXPs.

Peering vs transit: the difference that costs money

Peering exchanges only the two networks' own routes, for free. Transit is a paid service where a provider carries your traffic to the entire internet, including networks you have no relationship with. Every network needs a way to reach everywhere, so smaller operators buy transit, and larger ones replace as much of it as they can with peering.

You can read this economics in an AS path. A short path through a known exchange usually means peering; a path through a large carrier's ASN usually means someone paid for transit along the way.

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What is PeeringDB?

PeeringDB is the public directory where networks document their peering details: which exchanges they are present at, their traffic levels, their peering policy, and who to contact. Before two networks set up a session, one side almost always checks the other's PeeringDB entry first.

It is also a practical research tool for anyone analyzing traffic. Look up an ASN in PeeringDB and you can see how connected the network is, where it exchanges traffic, and how large it claims to be. Pair that with an ASN lookup on any IP in your logs, and you go from a bare number to a real picture of the operator behind it.

How peering shapes the AS path you see

Every peering decision changes the routes BGP prefers. When two networks peer, traffic between them stops flowing through intermediate ASNs, so AS paths get shorter. When a peering relationship breaks, paths suddenly lengthen and shift through transit providers, which you can watch happen in a looking glass.

For most teams the takeaway is simpler: the ASN an IP belongs to tells you whose network decisions govern that traffic. Abstract's IP Intelligence API returns that ASN, the operator's name, and its type for any address, so the routing world's structure becomes a usable signal in your own product.

Frequently Asked Questions

What is BGP peering?

BGP peering is an agreement between two autonomous systems to connect directly and exchange each other's routes using BGP, usually without payment. It gives both networks shorter paths and lower transit costs.

What is the difference between peering and transit?

Peering exchanges only the two networks' own routes, typically for free. Transit is a paid service where a provider carries your traffic to the whole internet. Networks peer where they can and buy transit for the rest.

What is PeeringDB used for?

PeeringDB is the public directory of networks' peering information: exchange presence, traffic levels, policies, and contacts. Networks use it to evaluate and arrange peering; analysts use it to understand who a network is.

Do you need your own ASN to peer?

Yes. BGP sessions are established between autonomous systems, so each side needs its own ASN and its own address space to announce. How networks get one is covered in how ASNs are assigned.

Is peering always free?

No. Settlement-free peering is the norm between networks of similar size, but when the relationship is unbalanced the larger side may charge for the connection, an arrangement usually called paid peering.

Nicolas Rios
Nicolas Rios

CEO at Abstract API

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