There is an interesting unbalance because Comcast has so much leverage by owning the last mile, they can push around Tier 1 providers. I'd like to fix that, mostly by creating a public policy around municipally owned Layer 1 infrastructure between customers in their cities and a city exchange building. Conceptually it would be no different than the city owning the sewers and outsourcing the water treatment plant to a…
Sorry to be dense, but it is not quite clear to me how ownership of the last mile affords such leverage. It would seem that if you need to buy bandwidth for end users, you would be negotiating transit like anyone else - I'm clearly missing something.
It would sure seem that way, but the recent Comcast-Netflix deal shows that it isn't necessarily that way; big ISPs can exert enough pressure on content distributors to get the distributors to effectively pay the transit costs.