Answer to Question #320245 in Computer Networks for Bismark Akyen

Question

1.      Why will two ISPs at the same level of the hierarchy often peer with each other? How does an IXP earn money?

Answer 1

Two ISPs at the same level of the hierarchy often peer with each other to send and receive traffic directly and avoid paying to the intermediate ISP provider. If two ISP's do not peer with each other, then they need an intermediate ISP provider to send traffic to each other.

IXP can earn money by charging each ISP that connects to it. The IXP charges each ISP based on the amount of traffic sent to or received from the IXP.