Earlier quoted context omitted.
> See this circa 1999 article about peering and settlement on the internet The purpose of the arrangement you're pointing to is so that transit providers (e.g. Level 3 or Cogent) could distinguish other transit providers from transit customers whose traffic was characteristically asymmetric. The reason transit providers care more about upload bandwidth than download bandwidth is that customer ISPs can easily offer we…
Please remember that Verizon is also a Tier 1 transit provider! They own (via Verizon Business) the old MCI/Worldcom/UUnet backbone that was one of the largest transit providers. Level3 and Verizon are both transit providers.
Importantly, there is no other way to reach those customers. If you need to get traffic from New York to San Francisco you can use Level 3 or Cogent or Verizon or any of a dozen others. If you need to get traffic to a particular household which is a Verizon subscriber, there is no path other than Verizon.