Peering exchange have revolutionized the ISP industry by providing better user experience, increased redundancy, network resilience and lower IP transit cost to mention just a few of its many benefits. Bandwidth is the range within a band of frequencies or wavelengths; it is also defined as the amount of data that can be transmitted in a fixed amount of time.

Data is sent over a network from a source and is received by a node at its destination. Imagine that each side of the transmission has a modem with a different data rate; this will not be a good combination for efficient communication as both ends have different data transfer rates, which ultimately causes delays in communication. Peering takes advantage of that unused bandwidth by allowing businesses to share it; this diminishes the amount of miles along the ISP provider’s infrastructure, lowering latency and reducing bandwidth cost.