Rohan covers the two major issues on net neutrality well:
The side of Net Neutrality I like is the one about not discriminating among destinations. If I place a VoIP call, my ISP should not be able to prevent my using Vonage (or to permit it only if I pay more) just because it has its own VoIP product. Such discrimination allows a carrier to take advantage of its near-monopoly situation in order to boost its other non-monopoly business, and should be prohibited. A non-Internet example: I subscribe to cable TV, and when the cable company, which also has media interests, bought a sports channel from another media company it decided to make it a “basic cable” offering that every cable customer would have to pay for, including people like me who never watch it. The cable company had never forced on its subscribers a longer established and much more popular sports channel that it did not own; this action was taken only when it benefitted the cable company’s media division. This is the kind of discrimination I would like to see prevented. If a carrier offers value-added services like VoIP, that’s fine with me, but it should not be permitted to discriminate between its own services and those of others.
The side of Net Neutrality that I’m not so keen on is the one relating to “traffic shaping”. Here the ISP gives lower priority to certain types of packets in order to keep the rest of the packets moving smartly. In particular, it gives lower priority to BitTorrent packets. BitTorrent is a peer-to-peer system for distributing large files, and is very good at that: GNU/Linux distributions have been spread this way, for instance. Unfortunately, the vast majority of BitTorrent traffic consists of audio and video distributed illegally, such as movies recorded by a video camera smuggled into a movie theatre. Movie files are huge, and BitTorrent traffic now constitutes a large percentage of all Internet traffic. Net Neutrality advocates say that this traffic should get equal priority. I don’t agree. If my ISP uses traffic shaping to slow down BitTorrent, that’s just fine with me. Yes, that unfortunately slows down “legitimate” torrents as well, but I’d rather pay that price than have the entire Internet slow to a crawl.
For the record, I don't think ISP should be able to discriminate between packets from different sources (without losing common carrier privileges) and should be able to traffic shape. The first means they cannot deliver a "superior" product, say video, by downgrading competitors. The second says the little geek next door can't ruin everyone else's Internet experience on the Internet by spending all day downloading movies.
If then (for example), Rogers wants to offer a "video downloading" package with all the bandwidth our hypothetical neighbor needs, they cannot make it a "Roger's Video Only" deal.
