IP Peering What is IP Peering? IP peering is a mutual agreement between two networks to exchange traffic directly without relying on third-party networks, improving performance and reducing costs. Explanation Peering eliminates the need for data to pass through intermediary networks, lowering latency and enhancing speed. It is commonly used by ISPs, content providers, and data centres. Practical Example of IP Peering A streaming service establishes IP peering with multiple ISPs to ensure faster content delivery and improved user experience.