Where do internet providers get the internet they’re providing?
In: Technology
Typically, ISP’s of similar sizes in the same area connect their networks together reciprocally (peering). Smaller ISP’s connect to bigger ISP’s as customers (if you have a small ISP, your ISP is essentially re-selling Internet connectivity it buys from one or more other ISP’s).
Alice owns a big ISP with 5 million customers. Bob owns another big ISP with 7 million customers.
Alice says, “Hey Bob, let’s connect our networks together. That way your customers’ computers can talk to my customers’ computers, and vice versa.”
Bob says, “Okay! Sounds like a win-win to me.” And then both companies have a few technicians go out to a bunch of different places all over the two companies’ common service area, install some equipment, run some cables, configure some software, and so on. When they’re done, the two networks can “talk” to each other.
Now suppose Charlie comes along, he owns a small ISP with 50,000 customers. Charlie says “Hey Bob, let’s connect our networks together.” Bob says “Nah you’re too small. This benefits you more than it benefits me. You have to pay me $50,000 a month if you want to connect your network to my network.” Charlie says “Okay, I guess I have no choice” and starts paying Bob $50,000 a month.
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