Peering Agreement What is a Peering Agreement? A peering agreement is a formal arrangement between two networks to exchange traffic directly, defining the terms and conditions of their collaboration. Explanation These agreements specify the technical and financial aspects of peering, including bandwidth usage, traffic sharing, and maintenance responsibilities. They are essential for fostering transparent and efficient partnerships. Practical Example of a Peering Agreement An internet exchange point facilitates peering agreements between ISPs to streamline traffic routing and improve regional connectivity.