Comment Because they can? (Score 1) 181
You pretty much answered your own question in the summary.
That is the position the large ISPs are taking (on the surface, anyway): we have the only lines the customer can use because we "own" that area, they can't switch, it's us or nothing.
The way I look at it, however is that if I were to peer directly with Netflix and/or host a Netflix cache (even at my own expense in the data center), prospective subscribers (the ones who care, who are also most likely the ones will pay the most) are going to subscribe to my ISP over my competition because we can use it as a selling point: "Hey, your Netflix will never buffer and it will come through at HD quality" - and if we added the bonus that "Hey, Netflix traffic won't count towards your cap" (if a cap is imposed) the customer is going to think the service is the bees knees... then word of mouth happens.
And all of this I think makes yet another great case for open/common infrastructure (not even municipalities running their own ISPs but companies who own distribution networks simply making the infrastructure available and saying to ISPs "here it is, have at it").
Imagine if the existing providers were forced to split in to infra/retail divisions and sell access to the infra at fair and equal wholesale prices to any ISP, thus allowing companies like Google or Sonic.net or any of the other smaller ISPs all around the country to be able to offer services over any infrastructure they could get access to!
Imagine if Comcast, TWC, AT&T, Verizon and so on all of a sudden had to actually compete on quality/customer service etc?
The large ISPs would of course need to be really forced - kicking, screaming and probably throwing tantrums along the way - but I would love to see something like this in America.