An excellent discussion of net neutrality issues that proposes a third solution is here, originally published in The New Atlantis. Quote:
It is worth noting that the concerns that animate the network neutrality debate are in no small part driven by the relative lack of broadband competition and the low levels of available bandwidth in the United States. Unlike some other nations, such as France and Japan, which employed a “line-sharing” model that lets multiple DSL competitors use the incumbent’s infrastructure, the United States pursued a different strategy. The issue of net neutrality is largely moot in these other nations because consumers enjoy both a greater level of competition and more bandwidth than in the United States. In essence, the network neutrality rules now being discussed reflect a short-term solution in the absence of a longer-term imperative: more robust competition in broadband markets and the building of higher speed, best-efforts data pipes.
For a long-term solution, policymakers should focus on promoting the entry of new providers into the broadband marketplace, particularly those using wireless spectrum, and adopting policies to boost the bandwidth of best-efforts broadband connections. And while we await the slow salutary effects of such reforms, policymakers should endorse a sensible approach on net neutrality—one that protects consumers, promotes innovation, and patrols against anti-competitive behavior.