It's sort of ironic, since they have specifically sold the benefits of broadband ADSL as being able to watch movies, etc and now they complain people are actually doing that ;)
If the Telcos feel they can charge Google for carrying its bits, then perhaps they should pay all the newspapers, blogs, etc that are providing all their content to those telcos for free.
Over the last 20 years, Telcos have made humongous profits selling internet access to content that they didn't have any hand in producing. Meanwhile, the newspapers are going bust.
People keep talking about saving newspapers by introducing paywalls and such. There's already a paywall: it's the internet access monthly fee. Take the money out of there.
If the newspapers can't survive, (I for one still like reading my daily non-electronic paper), let them die.
ISPs should simply be a pipe. Nothing more, nothing less.
I just think that it's an uneasy "let's keep our eyes closed" arrangement to begin with. If the Telcos want to open their eyes instead, they might find they have a lot more to lose than to gain. Ditching Net Neutrality will cost them a whole lot more than it will gain them, as soon as content providers realise that actually, the providers should be paying them, not the other way around.
I mean, if Telefonica wants to block access to youtube, why should Google stop them? Fine. Block it. And lose 80% of your customers overnight. If Google wanted to play this game, they should be asking Telefonica to pay them money.
It's not a long step from this to having bloggers, newspapers, etc, organise in collectives that can charge telcos for "access to every newspaper on the web" or "every blog on the web".
In the UK you have a choice from a few hundred ISPs, so there is no real monopoly here.