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This question turned up a few hours ago over here [0]. Apparently some ISPs are perversely hostile to peering.

[0] https://news.ycombinator.com/item?id=22627764

They are incentivized to attempt to charge for paid peering. It’s not that perverse, unless you like the internet going fast more than you like money.

It's perverse because it's harmful to both Netflix and the ISP's customers. The only reason ISPs get away with it is because they hold a monopoly on their user's internet access. If ISPs were subject to competition it would be a no brainer to host a Netflix cache within their network.

Normally when both sides are truly peers, they have valuable traffic to offer to each other, so their mutual payments would mostly cancel out.

Likely some ISPs see themselves as offering more valuable traffic than their competitors striving to peer.

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