In July 2007, Verizon helped form the P4P Working Group, which aims to cut the impact of P2P applications upon its network. Peer-to-peer apps work by downloading portions of a particular file from all over the world, which can mean that a particular packet of data traverses a great deal of Verizon's fiber. P4P actually works to push the file's packets from within the ISP's network, avoiding paying for the extra bandwidth needed to reach an Internet backbone.

In a traditional P2P network, if a Verizon customer downloads a file, only 6.3 percent of the data will come from another Verizon customer in the same city, said Doug Pasko, senior technologist at the company, in the Associated Press report Friday. In the "P4P" trial, 58 percent of the data came from nearby Verizon users, vastly reducing the company's cost of carrying the traffic.

The AP story also correctly notes that the P4P technology does nothing to affect the number of inbound and outbound connections; while this isn't as significant a direct FiOS connection, it still is the sticking point for cable operators like Comcast or Cox, which use a shared "party line" cable system that serves dozens of homes.

What this will mean for the ongoing net neutrality battles is anybody's guess. It is worth noting, however, that Verizon Wireless specifically forbids peer-to-peer applications on its network, while the other side of the house apparently is a bit more neutral. In total, it's quite consistent with the "appropriate and necessary" comment referenced above.

It is possible that such a technology will help split off Verizon from the cable providers in the ongoing net neutrality battles. Such a split would certainly weaken any sort of ISP alliance. Would that be enough to effectively make net neutrality the law of the land?