Report: Google and Verizon to strike deal on 'tiered' internet

According to the New York Times, Google and Verizon are close to a deal whereby Verizon will prioritize Google's traffic.
Consumers could soon see a new, tiered system, which, like cable television, imposes higher costs for premium levels of service. Any agreement between Verizon and Google could also upend the efforts of the Federal Communications Commission to assert its authority over broadband service, which was severely restricted by a federal appeals court decision in April.
Adds submitter dw_funk: "Clearly, they waited until Cory Doctorow was on vacation before making this announcement." Say bye bye to net neutrality. [NYT via submitterator] Update: Or not! Yano writes in: "The NYT story is shit. The Google/Verizon agreement basically guarantees net neutrality for broadband and keeps the question of mobile open." [CNET] Update: Xeni pointed me to this Computerworld article, which reports that Google itself now says the NYT is full of it.