Because of the issue of costs of IPLs this is exactly the International
version of not peering with you unless you got to multiple exchange
points in the US (a la, MCI/Sprint, etc.)
Local peering at no charge is almost always to both parties
benifit. (assuming the traffic off-loading compares
favorably to the cost of setting up the peering.)
But I've said this before in many different ways.
Also as market share in other localaties (i.e. UK) increases
greater % of local traffic stays local, reducing the % cost
and need for international private lines, thus working
to elimiate the "subsidy".
Obivously the whole issue of internaional settlements and peering
policy is about where US based NAP/MAE peering was two
years ago. With perhaps some benifit of the learning/bloodshed
in the US.