The Digital Economy Act requires ISP to send out letters and then technically hamper subscribers suspected of breaking copyright law.

The BIS revealed that the costs of this process will be paid by 75% by right-holders and 25% by ISP’s.

ORG seem to think this will costs ISP’s around £120 million. [1]

If this is the case, ISP’s are going to be looking at ways to avoid this costs, or to recoup it.

The obvious way to avoid paying this 25% cost will be to stop subscribers accessing copyright content in the first place. I guess this is why the BIS has gone down the 25% route. To force the ISP’s down the path of breaking net neutrality principles in order to avoid putting prices up and losing customers.

ISP’s will not just absorb such a loss, they will either pass it on some way or try to avoid it by blocking traffic types. Or maybe this will force them down the tiered internet route like some ISP’s have already considered. Using the additional income from subscribers willing to pay for faster/prioritised access to cover the costs of hunting down copyright infringer’s.

Either way, i think this will just push ISP’s towards a dangerous path.