Comment Not So Obvious (Score 1) 390
We don't have all the information here. The Level 3 post only talks about how much the hardware costs.
Level 3 very explicitly avoided mentioning services charges which Level 3 may (or may not) have been trying to get from Verizon. Note that Level 3 didn't explicitly say they would provide the extra connection bandwidth free of charge, only the hardware. I think there is more going on here than we know...
Of course, it could also be that Verizon is trying to get money from Level 3 because Level 3 was sending so much more traffic than Verizon. I am a very experienced network software designer and it is more expensive to receive IP traffic than to transmit it -- especially non-TCP traffic, because there is no flow control -- you need a lot of extra hardware capacity to handle bursts (buffering and CPU). From a technical standpoint, it makes a lot more sense for Level 3 to pay Verizon to handle the extra traffic.
BUT, compared to the cost of the entire network, the real cost of the peering is probably pretty insignificant for both parties. The only conclusion here is that they are probably both spinning the message by leaving out the unflattering information.