Peering is becoming a real touchy issue. Most of the larger providers don't really want to peer with anyone else because they can't really handle the extra traffic, or they are afraid of peering with a company that doesn't have the technical staff that is truly knowledgable about backbone routing.
With the major peering points getting more accessable to smaller providers, this becomes even more evident. And to be truthful, it can be understood. Their have been quite a ISP's get temporarily shutdown at one of the MAE's because of "errors" in routing procedures.
No names mentioned, but for example about changing peering requirements. One of the larger providers said they required three meet points + 2-3 private interconnects at DS-3 or higher... when we said that we could do that by the end of November, they said, "Really?.. that is going to cost both companies a large sum in hardware and DS-3 local loop fees." They changed their requirements to be just three meet points.
If you look at the monthly cost of buying a DS-3 from MCI, Sprint, UUNet, AGIS, or PSI, it is much cheaper to get a connection to a MAE, and trying to get peering.
Eric
But you're talking about getting connections to 3 exchange points and the "stuff" in between. I would say costs might be roughly even. But what about when you add in the network engineering, monitoring, and maintenance you need when you run your own network? Have you checked out market price on clueful network people who dance with BGP? The cost comparison might look different then... Avi