Mildly Infuriating
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Edit: wait, you might be right. As I understand, net neutrality is for the last mile ISPs, not the L1/L2 providers. So uh... what I explained below isn't relevant. Eh, I'll leave it in case people wanna learn stuff.
It was a bad explanation, assuming you had knowledge of network infrastructure things, but it does make sense. I'll explain things if you're interested.
Net neutrality is the idea that ISPs must treat all content providers equally. Your phone is not a content provider (most likely. You could run a web server on your phone, but... no). YouTube, Netflix, Facebook, TikTok, and your weird uncle's WordPress site are content providers. Without net neutrality, ISPs can say, "Hey YouTube, people request a ton of traffic from you on our network. Pay up or we'll slow down people's connections to you." The "neutrality" part means that ISPs must be neutral towards content providers, not discriminating against them for being high demand by consumers.
For the L1 and L2 part, that's the networking infrastructure. The connection to your home is just tiny cables. I don't recall how many layers there are, but it's just "last mile" infrastructure. The network infrastructure between regions of the country or across the ocean are giant, giant cables managed by internet service providers you've never heard of. They're the kind of providers that connect AT&T to Comcast. These are considered L1 or L2 providers. The data centers of giant companies, like Google for YouTube's case, often pay these L1 or L2 providers to plug directly into their data centers. Why? Those providers are using the biggest, fastest cables to ferry bits and bytes across the planet. You might be pulling gigs from YouTube, but YouTube is putting out... shit, I don't even know. Is there a terabyte connection? Maybe even petabyte? That sounds crazy. I dunno, I failed Google's interview question where they asked me to estimate how much storage does Google Drive use globally. Anyway, I hope that gives you an idea of what L1 and L2 providers are.
I'm not a network infrastructure guy, though. If someone who actually knows what they're talking about has corrections, I'd love to learn where I'm wrong
Net neutrality is about service to last mile customers, but it is based upon interconnection agreements across the L1 and L2 level.
ISP's pay for a connection to L1 and L2, so their users (who pay ISP's) can access content on those networks. Websites pay for a connection to L1 and L2 so their content can be available on those networks.
ISP's want to also charge websites for access into their networks of users, in spite of the fact their users already pay them for access to the website content. If some websites don't pay, then ISP's will provide a lower service to their users for those websites. Net neutrality says ISP's should not do this.
Differentiating between locally used data and hotspot data has nothing to do with this. Hotspot data is about the device the data is going to, not where the data is coming from, and typically (or at least traditionally, maybe not so anymore) a PC will use more data than a phone. A PC is more likely to have large multi-gigabyte downloads (eg games), although these days video streaming is perhaps the main bandwidth hog and is generally equal across all devices.
A home internet connection is expected to serve all devices in that home, while a mobile internet connection is expected to serve only that mobile device (excluding mobile broadband options, which serve multiple devices but are typically more expensive). The ISP's network is designed with this in mind.
It is more reasonable for an ISP to only provide data to the phone you're paying for than it is for them to throttle websites you already paid for. However, really both are kind of bullshit - usage limits in general are completely disproportionate to actual costs.