[Taniwha]

But this is about what your ISP does to your packets between when they receive them an d when they pass them to you - it would only be interstate if your ISP processed your packets in a different state (maybe your fiber crosses into another state)

[chipotle_coyote]

My ISP is Comcast. Their network is nationwide. They actually run major IP backbones. There's an excellent chance that packets destined for me are entering their network in a different state than the one I reside in.

It's huge, national providers like Comcast and Time Warner that are sparking the majority of concerns around net neutrality. On a practical level, nobody is super worried about predatory behavior from, say, Cruzio, an independent ISP serving Santa Cruz County.