Tier 2 Network What is a Tier 2 Network? A Tier 2 network is an internet service provider (ISP) that purchases IP transit from Tier 1 networks while also engaging in peering agreements with other networks to improve connectivity. Explanation Tier 2 networks act as intermediaries between Tier 1 providers and end users. They balance purchasing IP transit and peering to optimise costs and performance. Practical Example of a Tier 2 Network A regional ISP operates as a Tier 2 network, purchasing transit from a Tier 1 provider while maintaining peering agreements with local networks.