What Are IP Transit Services? | Pricing & Costs | Neos Networks

What are IP Transit services & what do they cost?

  • Neos Networks

What is an IP transit service?

Internet transit connects Internet Service Providers (ISPs) to access larger networks. IP Transit offers a reliable, high-performance and cost-effective solution based on a multi-homed and Border Gateway Protocol (BGP) enabled platforms.

It allows operators with their own Autonomous System Number (ASN) to benefit from resilient, scalable, high-performance BGP connectivity directly to the Internet.

Learn more in our IP Transit brochure.

How does IP transit work?

An IP transit service involves paying a provider for access to their network, which opens up reliable, high-speed access to the rest of the internet.

To set this configuration up, your network will normally be connected to the transit provider’s network using a physical link like a fibre optic cable or a wireless connection. Through the BGP, your transit provider will then circulate your business’ IP addresses to the rest of the internet.

From then on, the transit provider’s network will carry both outgoing and incoming communications from/to a device on your network to/from a device on the internet.

IP transit vs transport

While IP transit refers to connecting ISPs to wider networks, IP transport is about the physical transmission of data between networks. It is concerned with the frameworks of protocols needed to pass through these numerous networks, prioritising security throughout.

Of course, another consideration is that data cannot be sent and received in its entirety. It must be broken down and sent in smaller parcels, with bandwidth restricting how much can be sent at any one time. The physical medium of transmission – whether it’s co-axial cables, a twisted-pair cable, or fibre optics – dictates the bandwidth and therefore, the speed of IP transport.

IP transit pricing

Depending upon the provider, pricing for IP transit services is based on usage, is tiered or comes with flat-rate billing.

Metered usage is measured per megabit-per-second (Mbps). It employs the 95th percentile billing methodology, so called because the top 5% of usage is not billed. The method takes a measurement every five minutes to determine the billed usage.

The best pricing plan for your business will depend upon your usage. If you anticipate large amounts of traffic over a prolonged period, a flat rate plan would be best for your business, since you’ll be charged for the speed of your connection rather than the bandwidth used.

Tiered pricing, on the other hand, is based on using a certain bandwidth. If you were to use more bandwidth, you would move up to the next tier, which would come with another flat rate.

IP transit vs peering

IP peering is when two ISPs agree to a mutual exchange of data, without any charge. Since the amount of data shared is usually equal from both sides, both benefit equally, which is why there is no fee.

This is unlike IP transit, where one organisation pays another one to connect to its ISP. The organisation being paid is upstream of the one paying, meaning that it’s higher up in the ISP hierarchy and can offer access to the entire internet.

IP transit vs DIA

Dedicated Internet Access (DIA) is exactly what it sounds like: your own connection to the internet. Because the connection belongs to you alone, you will always get the bandwidth you’ve paid for, with no traffic to reduce this.

Using IP transit, however, means using an indirect connection to the internet, usually through several different interconnections. As a result, your service will be affected by traffic.

While having DIA is generally more costly, it is more reliable and secure, and better suited to handling a larger number of users and larger amounts of data.


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Business Internet FAQs

Take a look at our FAQs for business Internet

  • What is Managed DIA?

    Managed Dedicated Internet Access (DIA) provides the customer with a private connection to the internet where both the router and circuit are monitored and maintained on the customer’s behalf. Service providers will provision IP addresses for the customer and configure these upon a router. Once live, they will pro-actively monitor the service and keep software versions up-to-date.

    Learn more about DIA


  • Does your business need DIA?

    If you're looking for high performing internet access that's consistent and dedicated to your business, then DIA should be considered. It offers fast upload and download speeds and quality of service. Plus with speeds up to 10Gbps, you can rest assured that you have the capacity requirements to support a growing business.

  • What are the differences between Managed DIA and wires-only DIA?

    Wires-only DIA includes the provision of IP addresses, but the customer is responsible for providing a router and configuring the IP addresses on the router. The customer is also responsible for the maintenance and management of that router and software upon it. For Managed DIA, the service provider will provide the pre-configured router, monitor the circuit, router and maintain the router and software.


  • What is a leased line connection?


    A leased line is a private telecommunications network path used by businesses to connect geographically distant offices. A leased line is a dedicated fixed-bandwidth data connection that enables Internet connections, links devices and servers in different corporate offices, carries voice traffic and allows staff to connect remotely through a VPN.

  • What are the advantages and disadvantages of leased line connections?


    With an uncontended connection that goes directly into your building, you are guaranteed high symmetric speeds. The benefits of leased line are better connectivity and equally fast upload and download speeds. However, leased line connections require investment. They have longer set-up times and are more expensive than Asymmetric Digital Subscriber Line (ADSL) connections.

  • What is an IP Transit service?


    Internet Transit connects Internet Service Providers (ISPs) to access larger networks. IP Transit offers a reliable, high-performance and cost-effective solution based on a multi-homed and Border Gateway Protocol (BGP) enabled platforms.

  • How much does Dedicated Internet Access cost?

    As connectivity continues to improve, tariffs for dedicated internet access have come down significantly in recent years. Businesses can now benefit from dedicated connections for hundreds of pounds per month, rather than the four-figure sums of the past. Of course, prices will depend upon the speed of the connection you require. 

    We offer fibre circuit access across the UK, at speeds ranging from 10Mbps to 10Gbps, as well as Ethernet over FTTC/P access options that support a range of lower bandwidths, from 80/20Mbps to 1000/220Mbps. Your bandwidth is scalable, so you can step it up or down as your business needs change, regardless of data usage. Also, by using a large number of points of presence (PoPs) and multiple access providers, we keep connection costs lower.

  • What’s the importance of a dedicated internet connection?

    Today more than ever, a reliable internet connection is vital to the smooth running of most businesses. A fast connection can increase the productivity of your employees, while a poor-quality connection that regularly drops out can bring a halt to work and cause frustration among your personnel. A Dedicated Internet connection will ensure that the speed and reliability of your connection won’t be affected by other local users, through the avoidance of the public internet, keeping your operations going, no matter what.

    There are various transport options for dedicated connections, including Full Fibre Ethernet, Fibre to the Premise and Fibre to the Cabinet (FTTP and FTTC), Ethernet over Fibre to the Premise (EoFTTP) and Ethernet over Fibre the Cabinet (EoFTTC) and Ethernet First Mile. However, they all have these characteristics in common:

    • Guaranteed bandwidth
    • Synchronous download and upload speeds
    • Low latency, with minimal delays in data transmission
    • Better throughput, allowing more data to be transferred faster
  • What is the different between DIA and broadband connectivity?

    When it comes to DIA versus broadband, both hold similarities. So why take one over the other? The main difference between the two services is that, when taking a DIA connection, the service is dedicated to your business alone. This means you're not sharing your connectivity with other users in the area and so will benefit from lower latencies and less contention on the line. In addition, capacities are typically higher for DIA services. Ideal for those looking to flex their connectivity as their business grows.

    Learn more about DIA vs business broadband