Re:The worst case scenario: (Score 1)

BS eventually implements a tiered QOS policy. Google responds by saying, "fine. You charge us for the pipes, we'll charge you for the content that makes them useful." Cue the lawyers, who huddle up, then spit out a cross-licensing agreement such that BS pays Google exactly what they charge Google for the pipes. Google goes away happy; nothing has effectively changed. BS goes away not particularly happy with Google, but in a position where they absolutely can demand a net positive cash flow from content providers with less market clout than Google.

Actually, here's where it would be different. BS would do what it has been perfectly comfortable with for a long time...adding a 'surcharge' at the bottom of the bill...call it the "Google Surcharge." This way, their rates are still competitive and it looks to the customer that Google is charging them and not BellSouth goofing around. Meanwhile, BS keeps the money Google is giving them and pays Google with the customer's money.

Clever