Of course the missing item in that calculation is the last mile. Netflix could set up a cage at each landing point and the savings would be nearly 99%. And that adequately explains why international transit is  rarely the biggest cost issue (obviously there are corner cases around the world where this is indeed the biggest issue). The biggest part of the cost in the infrastructure (systems, staff, maintenance) is from PoP to customer.<p>Having said that some ISPs (especially ones that own the infrastructure) have a habit of increasing prices (if they can from limited competition; i.e. roll out costs are high so not too many companies roll out to a region) and&#x2F;or leaving customers to rot on old infrastructure (in order to maximise return on sunk cost; makes the CFO happy).<p>EDIT: clarification.