And yes, AWS' rates are highway robbery. If you assume $1500/mo for a 10 Gbps port from a transit provider, you're looking at $0.0005/GB with a saturated link. At a 25% utilization factor, still only $0.002/GB. AWS is almost 50 times that. And I guarantee AWS gets a far better rate for transit than list price, so their profit margin must be through the roof.
Which makes sense, but even their rates for traffic between AWS regions are still exorbitant. $0.10/GB for transfer to the rest of the Internet somewhat discourages integration of non-Amazon services (though you can still easily integrate with any service where most of your bandwidth is inbound to AWS), but their rates for bandwidth between regions are still in the $0.01-0.02/GB range, which discourages replication and cross-region services.
If their inter-region bandwidth pricing was substantially lower, it'd be much easier to build replicated, highly available services atop AWS. As it is, the current pricing encourages keeping everything within a region, which works for some kinds of services but not others.
This aligns with their “you should be in multiple AZs” sales strategy, because self-hosted and third-party services can’t replicate data between AZs without expensive bandwidth costs, while their own managed services (ElastiCache, RDS, etc) can offer replication between zones for free.
In general it seems like Europe has the most internet of anywhere - other places generally pay to connect to Europe, Europe doesn't pay to connect to them.
