Lack of competition and transparency in the last mile is the essential problem, but the Comcast/Time Warner merger doesn't really change the status quo there (unless someone makes a significant change a condition of the merger). The blueprint of a solution is the pre-2005 regulation of DSL by ILECs: make cable providers (or at least comcast), ILECs, and anyone else with a natural monopoly offer line-sharing on reasonable terms, and watch ISPs spring up (or re-emerge) with competitive offers and better routing than the incumbents. Bonus points if wholesale pricing is required to be at least as low as retail pricing, unlike in the DSL times.