Get Ready for Internet Toll Roads

Sci-Tech Today
Jun. 30, 2006

"Without a clear policy preserving the neutrality of the Internet and without tough sanctions against those who would discriminate, the Internet will be forever changed for the worse," said Senator Ron Wyden (D-Ore.).

An amendment to require network neutrality -- the idea that all content moving across the Internet would not be prioritized for delivery on the basis of fees -- was defeated Wednesday in a U.S. Senate committee.

In an 11-11 vote, the Senate Committee on Commerce, Science, and Technology failed to attach the network-neutrality amendment to a bill that would remove certain barriers for telephone companies to sell TV services. The vote in favor of attaching the amendment included all the Democratic Senators plus Sen. Olympia Snowe (R-Maine).

The main bill, dealing with broadband, TV, and other telecommunications matters, passed the Committee on a 15-7 vote. It includes a provision that allows the Federal Communications Committee to fine phone and cable companies if they try to block access to legal content or services on the Net.

A similar bill, which also does not include a requirement for network neutrality, has passed the House of Representatives.

Wyden To Filibuster?

The 11-11 vote means that network-neutrality amendment will not be added to the bill as it moves to the Senate floor to be debated. However, in another development yesterday, Senator Ron Wyden (D-Ore.) has indicated that he is prepared to filibuster the entire bill unless a provision for network neutrality is included.

"Without a clear policy preserving the neutrality of the Internet and without tough sanctions against those who would discriminate, the Internet will be forever changed for the worse," Wyden said in a statement.

"A Verizon Communications executive has called for an 'end to Google's free lunch,'" he said. "A Bell South executive has said that he wants the Internet to be turned into a 'pay-for-performance marketplace.'"

Under Senate rules, a Senator may filibuster by speaking without limit on a given measure, thus blocking a vote. Sixty votes in the Senate would be required to end a filibuster.

But Senator Ted Stevens (R-Ala.), who sponsored the main bill and chairs the Committee, has acknowledged he does not yet have 60 votes. It is expected that the bill will not reach the Senate floor until September at the earliest.

Telco Contradiction

Industry observers, by and large, are pointing to the many complications associated with the network-neutrality issue.

"The telcos' main argument against net neutrality," said Brian Washburn, an analyst with Current Analysis, "addresses mostly VoIP phone service, but also TV. Killing net neutrality could mean that telcos would have more control over competing TV services."

He noted that cable companies already offer a higher-priority service for VoIP calls.

"But the contradiction, especially for the telcos, is that they want common carrier status, which means they're not responsible for the content they carry," he said. "But they also say they want to prioritize some traffic, getting into issues of prioritizing content as well as applications. And then it would seem they could be held accountable for content."

Toll Roads

Senator Stevens maintains that imposing a "heavy-handed regulation" before there is a demonstrated need is wrong. His bill calls for the elimination of most state and local regulation of cell phone and TV service.

A key provision would allow phone companies to offer the equivalent of TV cable service by obtaining national franchises, rather than by obtaining licenses for each locality.

Proponents of network neutrality believe that, unless net neutrality is required, telecommunications companies will be able to charge different rates for different kinds of Internet content. Network neutrality would specifically prohibit these kinds of "toll roads."

A coalition of consumer groups and major Internet companies, including Google, Yahoo, and Microsoft, have fought to require nonpreferential treatment of content.