Wish I'd read this and the wiki before I went off in the other 'save the internet' thread.
I have a dim view of 'free market economics'. I don't trust it, really. In theory, competition is healthy. In theory, companies will work to improve their services or lower costs to remain competitive.
In reality, the companies look at each other, and make a deal. They agree to coexist or merge, creating a situation where improvements and lower costs are not driving factors, and where any new competitors can be easily crushed or acquired.
After that, there is very little that the free market can do.
Greed seems to be much more compelling than morality.
Also, consider the effects of advertising. if you have a large company with an artificially high price for its services, it will have better advertisments and be able to operate (briefly) at cut-throat competitive rates (aka, first 3 months free!) to keep the majority of internet users (the uninformed) from looking elsewhere.
Not conducive to business.
Yes, I know. I'm exceedingly cynical and jumping straight to worst-case scenario.
But I seriously have a hard time believing that businesses in command of something as powerful as the internet would make themselves completely honest and fair if they were given the powers to discriminate based on payment.
And I still have no clue how this'd work when foreign ISPs come into play.
Will the nice, high-speed network be world-wide? Or, will you still run into problems if there's heavy activity in the UK, South Korea, or Japan?
Isn't this really just saying "Only America-America connections will benefit from legislating discriminatory networks, despite the 'World' in 'WWW'"?
It's not the worst thing that could happen to the internet, but it's a bad idea. The current system appears to be fine. If the american telecomms are in trouble, they won't disappear. If they go belly up, the users won't be able to connect, so free-market thinking suggests that the pricing and services will change to cope with the problems through technology and business rather than using law as a weapon against the American consumers.