eli5: Where do Telcos and ISPs get the data bundles that they sell to us?

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And also the call packages too?

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4 Answers

Anonymous 0 Comments

There are different types of ISP. Your ISP probably has its own ISP that it connects to.

A Tier 1 ISP runs the critical communications infrastructure, also called the backbones. These are the companies that run lines of fibre optic cables within the country, across countries, under the sea etc. They are big enough to have peering agreements with other Tier 1 ISPs, meaning they cooperate to carry each others data without payment. But since their business is wholesale bandwidth, they won’t really deal with small companies or residential users.

A Tier 2 ISP isn’t as powerful, they have their own infrastructure, and may peer with other Tier 2 ISPs. But they aren’t big enough to peer with Tier 1 ISPs, they have to pay for that bandwidth.

A Tier 3 ISP has no infrastructure, they only purchase bandwidth from a Tier 1 or 2 provider.

This is the terminology used for internet/data networks, but there is equivalent concepts for telephony services.

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