Wholesale IP Transit

Frequently Asked Questions

1. What is the difference between IP Transit and Peering?

IP transit and peering both facilitate the exchange of Internet traffic between networks, but differ in the nature of the relationship between the networks and traffic flow.

IP Transit: In IP transit, a network operator (the customer) pays another network operator (the provider) for access to the provider's network and for the privilege of transmitting data over it. The provider operates a backbone, providing a connection to the wider Internet.

Peering: Peering refers to agreement between two network operators to exchange traffic with each other directly, typically for free and with minimal third-party involvement. In many cases, a neutral peering exchange/fabric, also referred to as an “IX”, may facilitate the peering between two network operators. Peering usually involves network counterparties of a similar size, and both networks benefit from reduced transit costs and improved performance.

In summary, IP transit is a commercial Internet service with guaranteed capacity where one network provides Internet access to another, while peering is a mutually beneficial agreement between network operators to exchange traffic.

2. IP transit vs DIA - what is better?

This is something we’re often asked, but it is perhaps the wrong question. The two products are different solutions for different businesses, with different requirements.

DIA, or Dedicated Internet Access, is an alternative to broadband Internet, built for use by enterprise and business clients. Nexthop partners generally procure this service to resell to the partner’s customer base.

IP Transit is a wholesale only product, built to service the requirements of ISPs, carriers, cloud platform providers and other such entities that require bulk capacity, and bring their own IP address space.

In summary, the biggest difference really is DIA is an Internet connection for end users using the ISP's IP address. IP Transit is for an ISP to advertise their RIR allocated address space through BGP to the world via on or more IP transit providers (upstreams).

3. Why can’t I buy IP transit for my business and enjoy wholesale pricing?

IP transit requires that the customer has an AS number, adequate IP space, an understanding of BGP networking, equipment capable of ingesting the full Internet routing table and enough demand for capacity to warrant the cost and complexity of connecting to an IP Transit backbone. Most enterprises don’t have the scale of utilisation to warrant this, but for those that do, we can certainly provide an IP Transit service!

Enterprise and business clients are, overwhelmingly, better serviced with a DIA solution. This is simply because the product is designed to be consumed the way a business expects an Internet service to be delivered, meaning WAN IP addresses, routes to the Internet, and routing table requirements are all handled by Nexthop.

4. What is the IP transit cost?

The answer to this depends on how much capacity you need, how many ports, and where we need to interconnect with you. Pricing is billed on a per megabit (Mb - bandwidth, not data) basis, with allowances for burst traffic with a 95th percentile mechanism.

5. What is the difference between DIA and Broadband?

Broadband refers to high-speed Internet connections, allowing faster data transmission when compared to legacy dial-up services. Broadband is delivered through various technologies, including coaxial cable, fibre optic cable, satellite, and DSL, each with its own unique limitations. In general terms "broadband" refers to download speeds of 25 Mbps or higher.

Dedicated Internet Access (DIA) refers to private, direct connections to the Internet that is dedicated solely to an organization or an individual. Unlike broadband, which refers to shared connections, DIA services are dedicated, providing guaranteed bandwidth and much better performance and reliability. DIA is often used by businesses and organisations that require reliable and secure Internet connections for mission-critical applications and services. DIA is typically delivered through fibre optic cables, offering faster, more reliable speed when compared to broadband connections.

While both broadband and DIA are types of Internet connections, they differ in terms of speed, reliability, security, and the type of users they are intended for. Broadband is suitable for residential and small business use, while DIA is a dedicated and private Internet connection that is best suited for large organizations and businesses that require a secure and reliable Internet connection.