So Netflix should pay Verizon $1/month/customer. And pass that cost on to the Verizon subscribers...
How quickly would this change Verizon's policy?
As a customer of an ISP, I pay for access to servers on the internet. My ISP charges me for a level of bandwidth. If they are the bottleneck slowing down my connection to the services I want to access, they should fix it, and give me what I'm paying them for.
My contract says I'm paying for access to the Internet. Access to the Internet involves transmitting data outwards, and receiving data inwards. So yes, I am paying them to transmit L3's traffic.
No it's not. You pay to send to them, and to receive data people send to you. You don't pay for your ISP to transit data from whoever is sending you data.
For example, you want to download something off a Server in Germany. Your ISP is responsible for getting your initial message to the server. But it's not responsible for taking that information in Germany and carrying to back to the US for you. The Server's ISP has to carry it to the USA and then dump it off at your local ISP.
Now your ISP and the Server ISP may have a peering point in Germany, but they might not. But either way, your ISP isn't under any obligation to pay for transit of data being sent to you. That's just not how it works. And that definitely isn't what is in your agreement with your ISP.
How quickly would this change Verizon's policy?
As a customer of an ISP, I pay for access to servers on the internet. My ISP charges me for a level of bandwidth. If they are the bottleneck slowing down my connection to the services I want to access, they should fix it, and give me what I'm paying them for.