Peering Potrential

In principle, most international voice traffic is amenable to interconnection using some type of neutral peering federation.

The reason is that it is expensive and time-consuming to negotiate separate bilateral interconnection agreements with the ever-growing number of carriers.

If all one wanted to do was pass traffic back and forth between mobile networks, a company might have to negotiate more than 300 separate agreements.

The advantage peering federations provide is a simpler, faster way to create those business and technology agreements by joining a federated interconnection provider's community, much as Internet service providers peer with each other.

In principle, much interconnection now handled by bilateral agreements could shift, not to mention wholesale traffic, which generally isn't exchanged using a bilateral agreement because the cost of doing so is prohibitive.