I would suggest that you don't understand the effect this is going to have on ISP's. They will be facing higher costs and they'll have to recoup that investment somehow.
@Vlad: As usual the American press has treated the situation in the Netherlands as a sort of utopia. On the short term it won't make much of a difference. Investments in bandwidth were ongoing because the "pie" is still growing. Some politicians are saying that net neutrality has something to do with that, but this is unconditional nonsense. For example, mobile internet bandwidth demands already outstrips the tempo at which mobile operators can invest in infrastructure, so for the time being it's a zero sum game between government and telcos. Sherri may be right that costs will go down but this will only continue on the short term while planned investments are still ongoing and the total size of the "pie" is still growing (the number of subscribers is increasing).
The effect it will have on the mid-term however is unclear. KPN who is both a telco, delivering infrastructure, and an ISP said that they would look into charging internet users an additional fee for VOIP services like Skype. Their core business is still fixed switched telephony and revenues are dropping steadily as VOIP becomes more popular and bandwidth allows for stable good quality connections. Vodafone, a mobile operator had, IIRC blocked the use of VOIP all together because it conflicted with their core business, which is cellular telephony. What net neutrality in the Netherlands intended to do it uncouple the conflict of interest between the telco service and the role of ISP. KPN and Vodafone see VOIP as a bigger threat to their business than growing demand for streaming video, although the latter will eventually start to hurt them as the market matures.
The effect in the Netherlands in the long term will probably mean that operators offering data services and operators offering telephony services will find themselves at odds with their own business model. What's good for the Vodafone "machine to machine" unit , for example (encouraging the use of VOIP) is diametrically opposed to the interests of their cellular business (discouraging the use of VOIP). It will certainly lead to telcos changing their pricing model to a "fixed price" model in order to compete with VOIP (at the moment pricing is per minute) but more importantly It may lead to companies wanting--or needing--to split up so they can compete with themselves more freely. Net neutrality will increase this pressure to split up because different business units will no longer be able to use traffic shaping or differentiation as part of the overall model to optimize what is good for the company as a whole.... Possibly to the detriment of their customers.
In the extreme long term we may see traditional switched fixed wire telephony disappear all together. In the Netherlands this is already happening. KPN is losing ground on their fixed wire business at an astonishing rate. Companies like UPC have already started offering VOIP service in combination with broad band internet as their primary telephony offering. For the cable companies net neutrality is mixed blessing because on the one hand KPN will not be able to hinder the further development of VOIP but cable companies will end up with new challenges with managing the local loop because the bandwidth throttling they rely on to avoid service degradation could be construed as a crime. For telcos it will mean lower revenues. For ISP's it will mean higher costs. For the telco/ISP's like KPN, it will mean both. For customers it will mean higher overall costs as the market matures.
All in all, what I see is that net neutrality is forcing the market down a path that I believe they would have had to take organically anyway.... Is forcing the issue while the market is still developing is going to improve anything for end users? There isn't any apparent monopoly or cartel forming going on here that needed a hammer blow..... so why? why now?
I don't see a need other than to give content providers a free lunch.
R..