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What an IXP is—and what it is not
An IXP is an interconnection venue built around a shared Layer 2 network, commonly an Ethernet switching fabric. The operator runs that fabric, and participating networks connect their own routers to it. The IXP is infrastructure, not a single worldwide exchange company, an Internet service for individual users, or a guarantee that every connected network will exchange traffic with every other one.
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RIPE NCC uses a specific definition in its address-assignment guidance: a physical Layer 2 infrastructure operated by one entity to facilitate traffic exchange between ISPs. For that policy, its criteria include at least three connected ISPs and a clear, open policy for others to join. These are RIPE NCC address-policy criteria, not a universal legal definition or a requirement that applies everywhere. The IETF’s RFC 7947 describes IXPs more generally as providing IP interconnection facilities, typically over shared Layer 2 networking such as Ethernet.
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- Networks connect to the fabric. The IXP operator provides the shared switching platform; each participant connects its router to it.
- Participants establish peering arrangements. Each network chooses which other networks to exchange routes and traffic with, subject to its own policies and the exchange’s rules.
- Routers exchange reachability information using BGP. These announcements tell a participant which destinations can be reached through a peer. The participant’s router applies its routing policy to decide which routes to use.
- Traffic crosses the shared fabric. When a participant selects a route through another participant, its router sends the relevant traffic across the IXP connection. The fabric carries the packets; BGP supplies routing information.
That distinction matters: the exchange fabric provides the shared data-link connection, while BGP communicates route information. Neither connection to the fabric nor receipt of a route means a network must accept or use it.
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Bilateral peering and route-server peering
Participants can exchange routes through direct BGP sessions with selected networks, through a route server, or using both approaches. The methods differ mainly in how routes are distributed and how much session administration participants take on.
| Approach | How routes are shared | Operational implications | Control |
|---|---|---|---|
| Bilateral peering | Each pair of networks establishes a direct BGP session. | Participants manage their sessions with each peer. In an illustrative topology in IETF RFC 7948, four routers in a full mesh require six sessions; this is a topology example, not an empirical statistic. | Networks choose their peers and apply policy to each direct relationship. |
| Route server | Participants send route announcements to a shared route-distribution intermediary, which distributes them to other participating clients according to its configured policy. | Can reduce the number of individually managed sessions and simplify multilateral route exchange. | Each network retains its own routing-policy choices. RFC 7948 describes route distribution that preserves the BGP NEXT_HOP attribute. |
A route server distributes routing information; it does not forward participants’ user traffic between them. The participants’ routers exchange that traffic over the IXP fabric. A route server also does not force participants to exchange traffic: networks decide which routes to accept and use.
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Why networks use an IXP
Direct interconnection can let two networks exchange traffic without sending those routes through an upstream transit provider. RIPE Labs notes that this may shorten paths and potentially lower latency or costs. Those benefits depend on the routes available, the traffic involved, the participants’ networks, and their commercial arrangements; an IXP does not guarantee lower latency, lower costs, greater resilience, or that traffic stays local.
IXPs provide a shared place for networks such as internet service providers and content delivery networks to interconnect. The value of a connection depends on which networks are present and which peering relationships a participant establishes.
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What joining an IXP does not guarantee
- Not automatic connectivity to every participant: each network decides which peers to connect with and which routes to accept.
- Not automatic traffic exchange: being connected to the same fabric alone does not create a peering relationship.
- Not a route-forwarding service from the route server: a route server brokers route announcements; participant routers forward traffic.
- Not a guaranteed performance or cost improvement: outcomes vary with network topology, route choices, traffic, and business terms.
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