Theoretical question: What if ISP-X had only one dedicated connection behind it, and subsequently was 1/100,000 the size of NSP-Y. ISP-X's only connection was a single content provider: Yahoo.

How do we resolve the settlement issues in this model? Why should the ISP-X pay NSP-Y to deliver valuable content to its consumers (dialup and dedicated)?

At the network level, Content Providers bear the cost of providing content on the Internet. They must find another way to recoup this cost, and/or pass it on to the consumers of that content. This should *NOT*, and never be a networking issue.

As diagrammed (with Internet / CableTV models referenced)

The CableTV model does not apply at all to the Internet, it is entirely different technology. CableTV you have finite bandwidth, which is broadcast. CableCo must choose what content to carry, and users get all that content. In this essence the CableCo is the content reseller. The Internet is not broadcast, ISP's are not content resellers, they provide network access, the user can choose the content, and can establish a relationship directly with the content provider. Routing IP packets are all NSP's should be concerned with, and insuring the cost of routing those packets is recovered -- what is contained within them, and the relationships between the two end nodes is irrelevant (excepting the AUP). Matt