In a healthy Internet environment, networks—like those that Internet service providers run—are connected to one another locally, usually through an Internet exchange point (IXP). This allows local Internet traffic to flow faster without traveling long distances and reduces potential points of failure, making the Internet more resilient.
The IXP is also a strategic location for content providers—like Google, Netflix, and Meta—to host servers where they can store local copies of the data people access the most. These are called content delivery networks (CDNs).
Having a CDN peering at an IXP means that all local Internet service providers connected there would have quick access to the movies, songs, social media posts, and other types of content people want, making the experience of streaming TV shows or flipping through social videos much more engaging.
However, as the cost of moving data internationally decreases due to increased traffic capacity, these content providers no longer see a need to have CDNs everywhere. They can save money and reduce management complexity by hosting their content in a regional hub and connecting internationally from there.
Meanwhile, content providers are also moving away from working with local IXPs and are instead making agreements with larger Internet service providers, offering them a direct connection to their international CDN.
But not all Internet service providers are big enough to get in on these agreements, which means those with less infrastructure or resources now need to take an extra step—going through larger Internet service providers—to reach the content they used to be able to access locally.
Those large Internet service providers, then, trying to maintain their market dominance, had to become what content providers call a virtual peering partner (VPP).
Private Peering and Virtual Peering
Private peering happens when two networks agree to interconnect directly without going through an IXP. This is a common arrangement. A virtual peering partner, however, is a bit different.
When an Internet service provider agrees to be a virtual peering partner to a content provider, it becomes the path that all other local networks that aren’t VPPs have to go through to get to the content their users need to access.
This new arrangement has encouraged service providers to favor peering with VPPs and neglecting IXPs, leading to a resilience trap.
It’s a Trap
The Internet is a network of thousands of globally distributed, interconnected networks. This is what makes it resilient and able to reach billions of people.
At a local level, when networks connect through a truly local IXP, this helps diversify global links and keep the networks on in case one of them fails. This shift to peering with VPPs comes with a claim that people will have access to better infrastructure, faster access to content, and more resilience. But this is a trap.
In the end, it erodes local infrastructure, creates international dependencies, and reduces resilience. And it doesn’t stop there: by partnering only with large operators, this shift encourages monopolies and risks making the Internet less open and more vulnerable to outages.
The Internet Society published a report on this issue and its many consequences, including how virtual and remote peering services create the illusion of local traffic while sending traffic thousands of kilometers away before it is exchanged between networks.
The good news is: we can stop it.
Saving the Resilient, Open Internet
The shift to virtual or remote peering is a decision that prioritizes direct content access and market dominance over technical excellence, reduced latency, and local network growth.
In the long run, these networks are risking their own operations. If your country were disconnected from the global subsea cables tomorrow, what percentage of your local government and banking services would stay online? For many, the answer is a sobering 0%.
To protect the resilient, open Internet, we need to address these peering trends not as business decisions, but as architectural shifts that affect us all. We must continue to strengthen the Internet’s foundations by:
- Prioritizing physical locality
- Advocating for inclusive peering policies
- Protecting IXP neutrality and community governance
- Rejecting mandates that distort the local peering environment
Looking at these trends, network operators have a choice. One path leads to a tiered Internet that is expensive, fragile, and easy to disrupt. The other path, the one we advocate for, leads to a decentralized, resilient, and locally rooted Internet.
Read the full report and learn more about protecting the resilient, open Internet.
Image © Nyani Quarmyne