Comment Re:Maybe I'm thick... (Score 1) 125
I'm already paying Comcast for a certain level of service (not that they actually provide anything close to what's advertised), but they'd also want someone like Netflix to pay to send their data to me (which is what *I'm* paying Comcast for). In a better functioning market, Comcast would have an incentive to get the fastest possible connection to Netflix so that I'm a happy Comcast customer with great connectivity to Netflix. Since they're a near monopoly (slower DSL is the only other option I have), they don't need to make me particularly happy, because I don't have a better option to get high-speed access to Netflix. Comcast knows that, and can hold my eyes hostage and ransom Netflix to get better connectivity to me.
To more specifically address your question, let's assume that Comcast upgrades their network so that they now have sufficient bandwidth to me that Netflix can stream 1080P, and I as a customer pay for a connection sufficient to stream 1080P. Netflix pays for connections sufficient to stream to me in 1080P. What the ISPs want to do is refuse to actually provide the connectivity that they're obviously capable of, and that their customer has paid for, unless Netflix also pays them to carry the data *to the ISP's subscriber*.
As for the "climate of openness and innovation," lets say I want to start a competing video streaming service. Netflix has been making money for a while, and can afford to pay residential ISPs for better access to their subscribers. If I can't afford to do that, I can't stream in 1080P, and my service never gets off the ground, even if I've paid for sufficient uplink capacity, and my subscribers have paid the ISP for sufficient downstream capacity. If I don't pay my subscribers' ISPs for faster access, I can't send data to them at a rate that both they and I have paid our respective network providers for. The ISP must have the capacity if they're able to sell me that "faster" access, so if I don't pay they must be slowing my data down.
Maybe the ISPs will never throttle below the data rates they're providing in 2011, but they should have incentive to build out their networks to provide higher capacity for things like Blu-Ray quality streaming video. If they do build such capacity (and as a customer I should expect them to try) but won't transmit non-paid data at that rate, they are making everything else slower than it would otherwise be. I'm paying them for best effort, and expect their best effort to keep getting better.
When an ISP says they want to charge higher fees for faster/better access to their networks, what they really mean is that they want to charge higher fees for faster/better access to their subscribers (who requested that data, and paid the ISP to receive it). If they actually had to compete for business, they'd be the ones wanting to pay for faster/better access to the sites/services that their customers wanted to get to.