[2Gkashmiri]

Wait. The poster above said in point 1 to buy a line,1G, 10g depending on your upstream seller. Why do you need peering then?

If I have 1Gbps line for example and 10 users each are using equal amount 100% of time, it shouldn't matter they send the data to Alaska or Russia or Australia ? Or does it?

Do you buy the pipe and the data itself also?

[icedchai]

You don't "need" peering but it offloads your upstream (transit) links, which are generally much more expensive. In the old days, I worked for couple ISPs and we typically had 3 or 4 upstreams (generally UUNet, Sprint, MCI...) This was back when a T1 was still considered fast.