>Both concerns are more "real," more rooted in actual observable practice, than the specter raised by the pro-NN people of a tiered, pay-for-pay internet. You

>Both concerns are more "real," more rooted in actual observable practice, than the specter raised by the pro-NN people of a tiered, pay-for-pay internet. You mean because neither of those have happened at all, and ISPs were already charging companies for pay-for-play? Its well documented that several ISPs were throttling Netflix for months before netflix folded and agreed to pay additional fees. That happened. thats real life. Thats more of a real concern than any of your hypotheticals. >In reality, the operating margin of Verizon's wireline division is 2-3%.[1] Nice cherry picking, meanwhile Comcast reports over 40% operating margin each year. >Cable Communications Segment — Operating Costs and Expenses We continue to focus on controlling the growth of expenses. Our operating margin (operating income before depreciation and amortization as a percentage of revenue) for 2011, 2010 and 2009 was 41.1%, 40.4% and 40.1%, respectively.[1] So where was that lack of incentive again? because 40% operating margin sounds fantastic to me >Since it doesn't cost appreciably less to offer basic cable than more expensive packages, this sets an important constraint on the economics of the network Source? Do you know how much cable companies pay each cable channel to carry them? Are you qualified to evaluate the cost differential to the provider of basic cable vs other packages? >And build-out restrictions, preventing upstart competitors from stealing away lucrative tracts of incumbents' service areas, are already stifling competition I agree here, this is why google has been rolling out fiber in the way they have, they are finding municipalities willing to overlook buildout requirements >The HN crowd acts like NN is being added on top of an otherwise pristine regulatory regime, but in reality it's just one more straw on a giant pile of hay. I dont know where you got that opinion, I've seen little other than criticism of the current status quo. >I'd be fine with, for example, the U.K. approach Do you have a link that kind of explains their approach? I'd be interested to learn more about it and http://en.wikipedia.org/wiki/Internet_in_the_United_Kingdom#Broadband http://en.wikipedia.org/wiki/Internet_in_the_United_Kingdom#... isnt doing a particularly great job [1] http://www.sec.gov/Archives/edgar/data/1166691/000119312512073905/d262998d10k.htm http://www.sec.gov/Archives/edgar/data/1166691/0001193125120...