It's possible to only pay the lower end of that range for a 2Gb 90th percentile commit on a 10Gb connection out of most major markets. Cogent pricing fluctuates wildly depending on your ability to negotiate.
Ignore the whole song and dance when they have to bring in a VP into the call to specially approve the pricing they're trying to pitch to you at. Those are standard transit sales tactics. Or avoid Cogent's sales entirely by working with a reseller.
Speaking with the VP to Negotiate for transit prices? Sounds like a pita. AWS knows that you're an engineer who just wants to write code and has made that as frictionless as possible.
This goes back to my first point in that going into the DC requires staff with very different skill sets. It's not that it's not worth it, but there's a lot of costs involved part from the per-hour instance cost.
He's paying 2-3x market (although 2Gbps isn't huge). Cogent is pretty much bargain-basement, too.
I wish the industry would stop quoting prices they way we do (USD/Mbps, so e.g. $1.20/Mbps); Gbps is probably the right unit now, and it may make more sense to invert.
But there are lots of terms involved in a transit contract; unless you're buying tens of gigs, crossconnect, port cost, commit, etc. may be more meaningful than per-Mbps cost. And pricing often depends greatly on exactly where in a city you're buying (at IX, carrier neutral facility, etc. will be cheapest; off net building or monopoly building will be most expensive) -- and of course Cogent transit vs., say, Level(3) transit are only superficially the same.
