peering charges.

Settlements also open another can of worms. Take for example:

Provider 1 peers with Sprint (example). Provider 1 sends/receives 10/mb
avg. to Sprint.

Sprint peers with Provider 1. Sprint sends/receives 5/mb avg to Provider
1 so Provider 1 pays a settlement to Sprint.

Next month Provider 1 artificially inflates his utilization with Sprint by
continually ftp'ing, etc. to offset the differance.

Why would this be any harder to believe than pointing default? And much
harder to diagnose, IMO.

Pipes are filled for no reason.