3 Key Benefits of Internet Exchanges

As an infrastructure where various digital players — internet service providers, carrier providers, content providers, etc. — can connect and exchange traffic, internet exchanges (IXs) have become an important part of the global internet ecosystem. According to the IXP Database (IXPDB), as of January 2021, there were 630 registered IXs across the globe — among them, 140 are located in the Asia-Pacific region. In Indonesia, the number of internet exchanges have been constantly growing — all owned by a number of established providers, including neuCentrIX Internet Exchange (NCIX).

So, what makes IXs important? IXs are essential for today’s businesses because they offer three major benefits.

OPEX Savings for Better Profitability

One of the main benefits of IXs is reduced operating costs. Without an IX, connections have to be made directly from one ISP (or an upstream ISP) to another, even internationally. ISPs usually charge per megabit for data transferred, so this type of connection can be costly and potentially add up as the traffic increases. Because an IX provides a direct interconnection between its members, traffic stays local. As a result, members can easily exchange content at a lower price, allowing them to save costs without lowering their service quality. Moreover, the costs of maintaining the physical infrastructure and associated services will also be shared among the members of an IX, allowing these members to lower their operating expenses. Lower operating costs mean more money for more important posts which allow businesses to gain more revenue.

Reduced Latency for Better User Experience

Latency refers to the time it takes for data to travel from one point to another in a network, meaning that the longer the distance data has to travel, the higher the latency. IXs’ ability to localize traffic and shorten the distance data should travel from its source to its destination results in reduced latency and improved round-trip time. Lower latency means faster page loading time as well as minimal lags and interruptions which equal a significant improvement of user experience. Moreover, depending on where it’s located, an IX may increase the speed in areas where long-distance connections aren’t very developed.

Stronger Local Internet Connectivity for Better Local Communities

Another reason why IXs are important is the way their presence helps strengthen local Internet connectivity. The reduced latency and improved data round-trip time as a result of IXs abilities allow for better access speed and reliability. Because of these capabilities, IXs are vital for the development of the local internet ecosystem in two ways: stimulating more business innovations and opportunities, and improving competitiveness. Stable and fast connections attract various services that will benefit from them, such as carriers, operators, service providers, and content providers. If these services are localized, bandwidth requirements are improved and allow the speed and reliability of the Internet access for local users to improve as well. The rise of digital consumption works as a motivation for more providers to produce and deliver more relevant content and applications for local consumers. All things considered, the whole process makes the internet more socially and economically beneficial to local communities.

These benefits are the reasons why more businesses today should become a member of an IX. As a part of Telkom Indonesia, NCIX offers not only these advantages but also other quality and capacity which can only be provided by one of the country’s leading digital telecommunications companies. That is why NCIX is the most reliable solution for your internet exchange needs.