IP Transit Pricing

IP Transit Pricing

IP transit is priced per Mbps of committed bandwidth, usually billed at the 95th percentile. At 1–10 Gbps commits in major data centers it commonly runs well under $1 per Mbps per month, and the rate falls steeply as the commit grows.

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How is IP transit priced?

A transit quote has several parts, and the per-Mbps rate is only one of them. Compare all of them side by side:

Line itemWhat it is
CommitThe bandwidth you pay for every month, whether you use it or not
Per-Mbps rateThe price of each committed Mbps; falls as the commit grows
BurstUsage above the commit, often billed at the same or a higher rate
Port feeA charge for the 1G, 10G or 100G port, sometimes waived at larger commits
Cross-connectThe data center's monthly fee for the cable between your cage and the carrier
Term12–36 months; longer terms lower the rate

What is 95th percentile billing?

95th percentile billing measures your usage every five minutes, discards the top 5% of samples for the month, and bills on the highest remaining value. Short spikes don't raise your bill; sustained peaks do.

What drives the per-Mbps rate?

How do you get a better transit price?

  1. Pull 90 days of usage so you can set a commit that matches your real 95th percentile.
  2. List every carrier on-net in your data center, and ask each for the same commit, port and term.
  3. Get prices at two commit levels; the next tier up is sometimes close in total cost.
  4. Add cross-connect and port fees to every quote before comparing.
  5. For redundancy, buy from two carriers rather than paying a premium for one.

Frequently asked questions

How much does IP transit cost per Mbps?

At 1–10 Gbps commits in major data centers, IP transit commonly runs well under $1 per Mbps per month, with rates falling as the commit grows. Small commits and less-connected locations cost more.

What's the difference between IP transit and DIA?

Both deliver internet access. IP transit is sold in data centers to networks running BGP, priced per Mbps on a commit. DIA is delivered to an office or building at a fixed monthly price for a set bandwidth.

Do I need my own IP addresses for transit?

Not necessarily. Many buyers announce their own address space over BGP, but carriers can also assign IP blocks.

Is it really free to use Discover Communications?

Yes. The carrier you choose pays us, so you get competing quotes at no extra cost.

Get competing transit quotes

Tell us the data center, the commit and the port size. We'll quote every carrier on-net there.

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