[outages] Problem between Level3 (TW Telecom) and ATT near Los Angeles?

[ML]

I've noticed an increase in latency and packet loss between two 
locations near the Los Angeles area.  One has a TW Telecom fiber based 
connection and the other an ATT DSL line.
The latency between two location used to be ~30ms and now is about 
~60ms.  Based on mtrs (See below) I'd say the ATT DSL line is the 
culprit for the packet loss issue.  If the traceroutes rDNS is accurate 
it seems TW Telecom use Level3 to reach ATT (as expected). However it 
seems that Level3 goes to Dallas to reach ATT.  That seems strange.  I 
would assume Level3 and ATT would peered in Los Angeles.

Level3 looking glass confirms that 107.128.0.0/12 is learned in Dallas 
from ATT from the point of view of Level3's LA router.

MTRs:

http://pastebin.com/eg3AUhAn