It is large Tier I carriers like AT&T and Bell South. Chances are, your ISP "leases" a data pipe from one of the large Telcos. They would use this Large Data Pipe (a DS3, OC3, OC12 circuit) to connect your market to one of the Large Public Data Exchange points located in places like NY City, Washington, DC, San Jose, Atlanta, GA and Miami, FL.

The TELCO wants to charge EXTRA to bring GOOGLE and other "Content Providers" data to the Public Data Exchange point.

it is the large Telco's belief that since they own the lines, they have a right to prioritize the data flowing down those lines.

This, of course, ruins the current business model of places like Google and Blizzard and yahoo and will most definately drive up the cost of using the internet to individual users, resulting in pay per use subscription policies for things that have been traditionally ad based revenue generators.

Quite literally, this is the very last bastion of the free and open internet, and it's the large telco's that are doing this, not the ISP's.