It’s a bit difficult finding out whether this is truth or rumor or something inbetween.

This is known.
Kellogg, Brown, & Root is a contractor for the US military that supplies military personnel overseas with water, food, housing, mail services and internet.
Apparently this is a division of a company called Halliburton.

There are rumours online that this company will be curtailing or cutting off internet access to soldiers in Iraq.

Electrolite
Milblogger
Kathyrn Cramer
Citizen Smash
BBC
Milblogger

British and coalition troops, and US troops in Baghdad have different internet providers.
There have been reports in the UK about prisoner abuse, but not like we’ve seen from the US.
Does the UK Ministry of Defense have different rules for personnel regarding internet and digital camera use?