IP transit, short for Internet Protocol transit, is a service that allows one network to

connect to and use the global internet by routing its traffic through another network. In
essence, it provides a way for smaller or regional internet service providers (ISPs), data
centers, or businesses to gain access to the larger global internet infrastructure.

Here's how IP transit works:

1. Transit Provider: The network that provides IP transit service is known as the
"transit provider." This provider typically has a robust, high-capacity network
infrastructure and numerous peering agreements with other ISPs and networks
worldwide. They have connections to multiple internet exchange points (IXPs)
and a vast network of routers and data centers.
2. Customer Network: The entity seeking IP transit is the "customer network." This
can be an ISP, a data center, a business, or any organization that requires internet
connectivity. The customer network connects to the transit provider's network,
often at a data center or a network access point.
3. BGP Routing: The Border Gateway Protocol (BGP) is used to exchange routing
information between the customer's network and the transit provider's network.
BGP helps determine the best path for data to travel from the customer network
to its destination on the global internet. The transit provider announces its IP
prefixes (routes) to the customer network and vice versa.
4. Traffic Exchange: Once the BGP routing is configured, traffic from the customer
network is sent to the transit provider's network. The transit provider's network is
responsible for forwarding this traffic to its destination on the internet, using its
network infrastructure and peering agreements. Conversely, incoming internet
traffic destined for the customer network is delivered through the transit
provider.
5. Service Agreement: IP transit is typically provided under a service agreement or
contract, which outlines the terms, conditions, pricing, and service level
agreements (SLAs) governing the use of the transit service. The cost of IP transit
is usually based on factors such as the volume of data transferred, the number of
IP addresses used, and the speed of the connection.

IP transit is an essential service for networks that do not have their own global internet
infrastructure but still need reliable and high-speed internet connectivity. It enables
them to access the internet and reach users, content, and services hosted anywhere in
the world through the infrastructure of a transit provider.