The National Commission of Markets and Competition (CNMC) has published a comprehensive report on the state of IP interconnection in Spain, a crucial area for understanding how Internet traffic flows within the country. The study examines concepts such as peering (both public and private), IP transit, Internet Exchange Points (IXPs), Autonomous Systems (AS), and on-net CDNs, along with detailed traffic volumes and geographic distribution of connections.
According to the report, approximately 78.87% of interconnections are free peering, highlighting the significance of agreements between operators without monetary exchange. Conversely, 20.19% are established through transit, and only 0.94% are paid peering, which is much less common in Spain.
However, the number of interconnections doesn’t always reflect the volume of data transmitted. In terms of traffic, about 55.95% of the total is routed via transit, compared to 43.25% through free peering, and 0.80% via paid peering. This distribution is partly due to major Spanish operators—such as Telefónica through Telxius or Orange with OpenTransit—using specialized subsidiaries to manage international transit.
The CNMC also details the distribution of interconnections by provinces. Madrid hosts the vast majority, as expected, being the country’s main telecom hub and home to most neutral points and critical interconnection infrastructure. Other provinces play a more limited role, though diversification is increasing with the deployment of regional networks and new data centers.
Within peering traffic, about 80.85% is private peering, while 19.15% occurs at public exchange points like DE-CIX Madrid or ESPANIX. This confirms that, although IXPs are relevant, large bilateral agreements between operators remain the cornerstone of national interconnection.
The report estimates that the four main Spanish operators handle an aggregate inbound traffic of 30.85 Tbit/s and outbound traffic of 6.31 Tbit/s. Specifically, inbound traffic includes 12.41 Tbit/s via peering and 18.45 Tbit/s through transit, while outbound figures are 3.48 Tbit/s and 2.83 Tbit/s, respectively. Operators categorized as “others” manage smaller volumes—about 3.40 Tbit/s inbound and 960 Gbit/s outbound—most of which also go through peering.
A particularly revealing part of the report covers on-net Content Delivery Networks (CDNs) hosted within operator networks. Excluding proprietary audiovisual services, the maximum capacity of on-net CDNs for content delivery to users reaches 15.27 Tbit/s, with 2.52 Tbit/s dedicated to content filling. Smaller operators have considerably lower capacities, around 360 Gbit/s maximum, with 53 Gbit/s for filling, reflecting the increasing importance of hosting content as close as possible to end-users to reduce latency and international transit costs.
The report also clarifies key concepts such as free peering, paid peering, IP transit, Autonomous Systems (AS), and IXPs, emphasizing their roles within the evolving ecosystem.
Published at a pivotal moment, the CNMC’s report highlights growth in data centers across Spain, increasing traffic from AI and video applications, and Madrid’s emergence as Southern Europe’s digital hub. The concentration of traffic, dominance of transit over peering, and the importance of CDNs paint a mature but challenged ecosystem, needing further diversification and resilience.
Frequently Asked Questions (FAQ):
– What is Internet peering?
It’s an agreement between operators to exchange traffic directly, without intermediaries. It can be free or paid.
– Why does transit carry more traffic than peering in Spain?
Because large operators use specialized subsidiaries to manage international transit, which concentrates more traffic in this mode.
– What role does Madrid play in interconnection?
Madrid hosts most interconnections and traffic volumes, serving as the country’s digital hub and home to many neutral points and major data centers.
– What are on-net CDNs and why are they important?
They are content delivery servers within ISP networks that enable faster and more efficient delivery of video, gaming, and other digital services with lower latency.