Internet Exchange Points reduce Internet prices and increase Internet speed


Internet Exchange Points reduce  Internet prices and increase Internet speed

“More than 55 Internet exchange points – also known as IXPs – installed in Latin America and the Caribbean have allowed bringing content closer to end users and led to a reduction in rates while allowing an increase in speed,” said Ariel Graizer, president of Cabase and LAC IX, the Latin American and Caribbean Internet IXP Association (

LAC IX’s members are traffic exchange point operators, joined by adhering members who contribute to the development of traffic in the region.

IXPs improve Internet speed for end users and the availability of wholesale bandwidth, so “a major improvement is perceived in terms of quality and end users benefit from a reduction in costs,” added Graizer.

The region is home to more than 55 Internet exchange points, led by Brazil and Argentina with more than 20 each, while the remaining countries have one, two or even three IXPs.

An Internet exchange point is physical infrastructure through which Internet service providers (ISPs) exchange Internet traffic between their networks. According to Graizer, IXPs benefit access and content providers, but the major beneficiaries are the people in each region who connect to such operators and content providers.

By way of an example, he recalled the first experience of Cabase (Argentina) installing an exchange point between Neuquén and the telephone service provider for San Martin de los Andes, in the middle of the Andes in the Argentine Patagonia, 400 kilometers from Neuquén. “When the IXP started operating, the monthly wholesale cost was 1,200 dollars per megabit. Today, this cost is less than 20 dollars, a major price reduction. Likewise, broadband bandwidth has also improved, as back then they were paying 1,200 dollars for just 20 megabits and today they have almost 4 gigabits,” noted Graizer. This IXP resulted in a substantial improvement of Internet quality and availability.

Graizer admitted that for Latin American and Caribbean IXPs IPv6 traffic is still significantly lower than IPv4 traffic, though he noted that IPv6 traffic is growing. “As more content is made available over IPv6, more traffic will be generated,” commented the president of LAC IX. “While not at the speed we’d like, the trend continues to grow,” he added.

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