IP Transit: The High-Speed Global Backbone
In 2026, IP Transit—the service that allows a network to "reach the rest of the Internet"—is defined by ultra-low pricing in competitive hubs and a shift toward "Committed Data Rates" (CDR).
Pricing Compression: In 2026, IP Transit in major hubs like Northern Virginia or Frankfurt has dropped to $0.03 – $0.10 per Mbps for 100 Gbps commits. However, in developing regions with limited fiber, prices can still exceed $1.00 per Mbps, highlighting the "Infrastructure Gap."
The 95th Percentile Standard: Most 2026 billing still follows the "95th Percentile" model. Traffic is sampled every five minutes, and the top 5% of usage spikes are ignored, ensuring that a short-lived DDoS attack or a viral traffic spike doesn't result in a massive, unpayable bill for the customer.
Tier-1 Dominance: The global internet remains a hierarchy. Tier-1 providers (Lumen, Cogent, GTT) are the "Lords of the Backbone," who peer with each other for free and sell "Transit" to everyone else, ensuring that a single connection from a local ISP can reach every corner of the global network.