An Internet Exchange (IE) allows networks to exchange local Internet traffic, providing high-bandwidth and reducing the average delivery cost. Users located in the same city can exchange local traffic, without having to cross international borders, while greatly reducing latency.
The primary advantages of an IE include:
Cost – traffic passing through an exchange is usually not required to pay a toll fee
Latency – if traffic is local the data is not required to travel to other cities or countries
Bandwidth – speed is most noticeable in regions that have underperforming long-distance connections due to limited routes to the Internet
When selecting an Internet Service Provider (ISP) in your region it might be a good idea to perform a quick background check and see if they’re on the IE.