Networking with competitors

Recently, a friend mentioned to me about how he spent time on a regular basis networking with his competitors.  I was surprised by this, but when I questioned deeper, he explained that:

1)  It is a great way to discuss in general terms the challenges or opportunities you are facing (without revealing anything confidential).

2) Sometimes you may refer each other business if it is not in your area of expertise or you have over flow

3)  There may be back office practices where you can assist each other , without feeling as if you are giving someone a competitive advantage.

4)  There is probably enough business out there for everyone, so it will probably not hurt to simply have a dialogue.

I have just begun my experiment , so stay tuned and I will keep you appraised of the results.