*IS* there a common sense number or an equation (better) anyone has worked out to figure whether building a backbone (national/international) to peering points (i.e. extending an existing, operational service network) to improve/add peering vs continuing to buy transit?
If you are assuming that this is not about performance then surely this is a very simple thing to work out?
Cost of transit T = cost of transit/committed Mbs Cost of peering P = (cost of: circuits+routers+colo+nap)/Mbs of actual traffic
If P>T go and push your network out to the peering point it will save you money.
Now.. at present your problem is that T is very low, and certainly lower than P unless you are moving quite a lot of traffic.. 1Gb is a lot of traffic, so all you need to do is to figure out the costs in getting to a NAP and how much traffic you can shift.
[skip] You are forgetting: salaries depreciation leases IRU financing expenses ... etc etc etc Alex