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Internet Exchange Points (IXPs)

An Internet eXchange Point (IXP) is a network facility that enables the interconnection of more than two independent Autonomous Systems (AS), primarily for the purpose of facilitating the exchange of Internet traffic. IXPs have been a key element of the Internet architecture and their importance as the ideal location for Content Delivery Networks (CDN) wishing to bring content closer to their customers has enhanced this position. IXPs have witnessed increased traffic levels as a result of delivering video from these CDNs. IXPs

operate; as independent regional IXPs, as interlinked IXPs using commercial links or as interlinked IXPs using owned links. In developing countries it is clear that the development of IXPs in regions cannot be commercially justified as in similar population centres across developed countries. This leaves the developing country citizens from regional areas at a disadvantage in terms of future Internet services.

Source : https://ieeexplore.ieee.org/document/8417378

How IXPs Work 

For an IXP to work it needs: a switch, routers, servers, a neutral locations, appropriate power sources, cooling, security, and technical experts to run and manage the IXP.

What’s The Business Case

IXPs provide an alternative to the expense of sending domestic Internet traffic abroad, 

only to have to return that traffic via an expensive international link. Basically, IXPs help keep local traffic local and help with cheaper, better, faster local Internet traffic exchange. 

The cost and quality of service that IXPs make can help ISPs and content delivery networks see the benefit of supporting IXPs. 

Source : https://www.internetsociety.org/issues/ixps/