In computer networking, peering is a process in which two networks connect and exchange traffic. Basically is when one internet network connects to another directly, enabling a faster throughput and exchange of information. No additional charges are incurred and no third-party network is required. To set up peering with another network, you need to negotiate an agreement with that network and work to set up the connection between the two. There are many types of peered connections; public peering Setting up public peering via an Internet exchange (IXP) or exchange points – using one or more Ethernet switches that are collocated. Private peering involves 2 networks with routers in the same building, and a direct point-to-point cable between them. Partial peering is the setting up of partial or regional peering so that network traffic is only exchanged in one area of the globe. While paid peering is partial transit that involves arranging for one network to pay the other to participate in the arrangement. Benefits include lower costs, greater control, larger bandwidth capacity, better network ranking and more.

You can also find many requirements to establish peering as well as many types of peering agreements, but the truth is that more and more internet service providers are now using this strategy to reduce network costs, increase redundancy and improve performance.