I'm guessing you didn't read the article, or skimmed it (I've often been guilty of skimmage).
One obvious question to ask is whether ISPs refusing to upgrade peering connections could violate net neutrality laws. The Federal Communications Commission's (FCC) Open Internet Order prevents ISPs from blocking content or unreasonably discriminating against third-party traffic. ISPs that sell their own video services while simultaneously degrading other video traffic might seem to be violating the principles of net neutrality, but they're likely not violating the letter of the law.
The FCC's Open Internet Order makes only one reference to peering: "We do not intend our rules to affect existing arrangements for network interconnection, including existing paid peering arrangements."
Susan Crawford, a former tech policy advisor to President Obama and author of Captive Audience: The Telecom Industry & Monopoly Power in the New Gilded Age, told Ars via e-mail that this exception for network interconnection agreements including paid peering "is an enormous problem. If we focus only on discrimination vis a vis users' access to applications, we're missing a huge part of the story. Network operators in the US are now sufficiently powerful that they can pinch traffic farther upstream as well as pinch traffic in the last mile." [...]
"We'll be in line with our hand out if Comcast is getting paid [by Netflix] and Time Warner is getting paid," Jacoby said. "But there are network neutrality implications, there are a lot of questions I'd want to see answered before just going and shaking them down. What threat do we have? We're going to make service bad for our customers? We're not going to do that. Some of the other cable companies are willing to do that, but we're not going to. Being the little guy, that's the competitive position, and that's the differentiation."
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