They're saying that the U.S. ISP companies have regional monopolies, and that net neutrality wouldn't be as much of an issue if there were substitute service providers per region.

This honestly isn't true, because if we had a marketplace for ISPs, most consumers would pick the cheapest option, which would probably be the one that subsidizes it's revenue from charging companies like Netflix. Some smaller companies that don't care about full market access wouldn't pay, and then you're at a tiered internet structure not unlike cable packages.

He's only saying it's a "red herring" because ISP monopolies and net neutrality are different issues.