Peering agreements are typically between two networks of comparable size. In the case of a regional ISP wanting to connect to the internet, they would paying f

Peering agreements are typically between two networks of comparable size. In the case of a regional ISP wanting to connect to the internet, they would paying for access to one or more Tier 1 or Tier 2 providers and possibly participating in an IXP. There is much more competition in these markets and plenty of ISPs (e.g. CenturyLink) are also Teir 1 providers in markets where they do not act as an ISP.