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IP transit is a form by which wholesale Internet bandwidth is sold (or in the case of Melbourne Wireless provided) to Internet service providers (ISPs) and content providers. Pricing is typically offered on a per megabit per second per month basis (Mbit/s/Month) and requires the purchaser to commit to a minimum volume of bandwidth. Pricing for the bandwidth can be reduced significantly by purchasing larger volumes or extending the contract term.

Modern IP transit agreements typically provide service level guarantees to almost all of the major Internet Exchange Points within a continental geography such as North America. These service level agreements still provide only best-effort delivery since they do not guarantee service from the Internet Exchange Point to the final

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Version 1 (current) modified Sun, 26 Oct 2008 12:03:32 +1100 by bevans
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