Well, perhaps if you were as big as Google you could. I don't know enough about the economics of scale. But you'd have to be doing some serious volume at the local internet exchanges.
By the way, I was kind of thinking out loud because I'm in the same position:
http://www.alexa.com/data/details/traffic_details/rocksolida...
Bandwidth is averaging above 1mb per person (and growing - the new games are bigger than Stunt Pilot and people play more the more we have), which is probably quite a bit less than justin.tv, but still costly. I definitely won't leave the US for bandwidth, but I'll probably end up with a mixture of baseline servers, gigabyte per month servers and a mirror of static content ready on S3 (as well as a static version of the site), just in case too many of my servers go down at once or we get a massive traffic spike.
Maybe then I'll get a story on TC about how I've created a "CDN", and hey, I wouldn't email them saying remove the story, it's innaccurate. :)
Bandwidth from a company like Alpha Red works out to about 3 cents/gigabyte if you buy it in 50 megabit per second chunks, or 6 cents/gigabyte if you buy it in 4tb per month chunks.
S3 is 18 cents/gigabyte.
Megabit per second is cheaper if you can keep it at 50% utilization, so baseline bandwidth is actually quite cheap. You'd be crazy to be that bandwidth intensive and pay 18 cents/gig for all your traffic. It adds up quickly.