To put numbers to the relativity, for a somewhat smaller datacenter in Central Europe with a 100Gbit/s connection, the running Cost of transit is somewhere around 0.00004€ per GB, on a theoretically fully sustained connection(not realistic, also with no redundancy or hardware).
Peering is basically free(after initial buildout) with around 3k€ per 100Gbit/s (https://www.ams-ix.net/ams/pricing). This all excludes cost of investment for initial buildout and hardware.
On a scale on amazons level this becomes even cheaper, since operating your own network is cheaper than buying transit.
Hetzner charges 1,19€ per TB, amazon 90$(on the first 10 TB). So amazon probably doesnt really care about the price differences per region and went with a mixed calculation, since their margins are so absurdly huge.
also, major parts of the cost are in hardware and staffing/development, of which amazon has way more, due to the demands of SDN.
Bandwith cost highly depends on the scale and target network. Cloudflare has a good blogpost on relative bandwith cost: https://blog.cloudflare.com/bandwidth-costs-around-the-world...
To put numbers to the relativity, for a somewhat smaller datacenter in Central Europe with a 100Gbit/s connection, the running Cost of transit is somewhere around 0.00004€ per GB, on a theoretically fully sustained connection(not realistic, also with no redundancy or hardware). Peering is basically free(after initial buildout) with around 3k€ per 100Gbit/s (https://www.ams-ix.net/ams/pricing). This all excludes cost of investment for initial buildout and hardware. On a scale on amazons level this becomes even cheaper, since operating your own network is cheaper than buying transit.
Hetzner charges 1,19€ per TB, amazon 90$(on the first 10 TB). So amazon probably doesnt really care about the price differences per region and went with a mixed calculation, since their margins are so absurdly huge.
also, major parts of the cost are in hardware and staffing/development, of which amazon has way more, due to the demands of SDN.