Actually, let me revise that. The fact that Verizon is a Tier 1 provider does have an effect -- it's the motive for Verizon's anti-competitive behavior.
The traditional arrangement is that you have a last mile provider in each region and a collection of Tier 1 providers who they pay to provide transit between them. If a last mile provider is also a Tier 1 network then the relationship is different. Rather than a monopoly last mile network shopping for a transit provider and the transit providers all competing with and peering with each other, you have a large monopoly last mile provider who doesn't need a transit provider and is in competition with the other transit providers.
The situation changes from one where Standard Oil is buying trucks from Ford and Chevy to one where Standard Oil starts making their own trucks and can charge prohibitively high prices for fuel to Ford and Chevy customers to destroy their business and force customers to buy the monopolist's trucks.
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Actually, let me revise that. The fact that Verizon is a Tier 1 provider does have an effect -- it's the motive for Verizon's anti-competitive behavior.
The traditional arrangement is that you have a last mile provider in each region and a collection of Tier 1 providers who they pay to provide transit between them. If a last mile provider is also a Tier 1 network then the relationship is different. Rather than a monopoly last mile network shopping for a transit provider and the transit providers all competing with and peering with each other, you have a large monopoly last mile provider who doesn't need a transit provider and is in competition with the other transit providers.
The situation changes from one where Standard Oil is buying trucks from Ford and Chevy to one where Standard Oil starts making their own trucks and can charge prohibitively high prices for fuel to Ford and Chevy customers to destroy their business and force customers to buy the monopolist's trucks.