Peering versus Transit

What, providers not wanting to toast their backbone? When you are
connected to every major exchange and have a huge DS3 network, it cost
big bucks. We are building a small network and will be spending about
$250K a month on telco. Why should someone be able to just pay MFS $5700 a
month and make everybody transit bandwidth to him at just MAE-East?

I think Peter G's original point was that they are spending $8m/yr
(L5m/yr) connecting to just MAE-East. I'm not sure I agree with Peter
that constructing a network beyond that in the US is entirely redundant,
but it is surely illogical to class an $8m network in the same category
as just a $5700 network.

Alex Bligh
Xara Networks