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A Tier 2 network is an internet provider, technically an autonomous system, that peers with some networks but also buys IP transit to reach the parts of the internet it can’t reach through peering alone. In the conventional model, it typically buys that transit from Tier 1 providers and may peer with other Tier 2 networks. The label describes how a network is interconnected. It doesn’t measure size, speed or quality.
The terms behind the definition
Autonomous system (AS)
An AS is a network, or a group of IP networks, run under one administrative authority with a common routing policy. Arcep, the French telecom regulator, defines it in these terms in its interconnection publication. Tier labels are applied to autonomous systems, not to whole companies.
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Peering
In peering, two networks exchange traffic between themselves and their own customers. Peering does not give either party onward access to every network the other can reach. It can be settlement-free or paid. The Internet Society and the European Commission both describe it this way.
Transit
In transit, a customer pays an upstream network to carry its traffic to destinations beyond that upstream’s own customers. Through the upstream’s own peering and transit relationships, this can give broad or global reach.
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Tier 2
A Tier 2 network combines both: it peers where that is practical and buys transit for everything else. The European Commission describes Tier 2 providers as supplementing their own reach by purchasing transit rights from Tier 1 providers.
Tier 1, Tier 2 and Tier 3 compared
| Conventional label | How it reaches the internet | Typical role |
|---|---|---|
| Tier 1 | Reaches the whole internet through peering, without buying transit (traditional definition). | Backbone and transit provider. |
| Tier 2 | Peers with some networks and buys transit, commonly from Tier 1 providers, for the rest. | Often a regional or national carrier or wholesale provider. It may resell connectivity onward. |
| Tier 3 | Mostly buys upstream transit and focuses on serving end users. | Retail or local access provider. |
The three-tier description is reproduced in the UN Digital Economy Report, which cites a workshop presentation as its source. The Internet Peering Playbook gives practitioner context for the Tier 2 role.
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A simple example
Picture a regional carrier. It exchanges traffic directly with several neighboring networks, which is peering. Those links cover a share of the destinations its customers want. For everything else, it pays a Tier 1 provider for transit. That mix of peering and purchased transit is what makes it Tier 2.
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Limits of the Tier 2 label
- It isn’t a ranking. A Tier 2 network can be large and well connected. The label says nothing about speed, reliability or customer service.
- It isn’t a formal status. No certification or standard assigns it. In a merger decision, the European Commission said it had considered separating Tier 1 and Tier 2 transit providers into distinct markets but left the question open in earlier decisions. So the labels work as market shorthand, not regulatory categories.
- It simplifies real relationships. Providers often play mixed roles, and interconnection deals are commercial and change over time. An ITU terminology report notes that alternative peering structures can challenge the traditional hierarchy. That report was marked as prepublished when surfaced, so its wording may change.
- It depends on the relationship. A network may act as a customer in one deal and a provider in another. One label can’t capture all of them.
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