http://www.salon.com/tech/feature/2006/04/17/toll/print.html

The corporate toll on the Internet
Telecom giant AT&T plans to charge online businesses to speed their 
services through its DSL lines. Critics say the scheme violates every 
principle of the Internet, favors deep-pocketed companies, and is bound to 
limit what we see and hear online.

By Farhad Manjoo
Salon.com

Apr. 17, 2006



To say that AT&T was once the nation's largest phone company is a bit like 
describing the Pentagon as America's leading purchaser of guns and bullets. 
Until its government-imposed dissolution in 1984, AT&T, which provided a 
dial tone to the vast majority of Americans, enjoyed a market dominance 
unlike that of any corporation in modern history, rivaling only state 
monopolies -- think of the Soviet airline or the British East India Tea 
Company -- in size and scope. In commercials, the company encouraged us to 
reach out and touch someone; the reality was that for much of the 20th 
century, you had no choice but to let AT&T touch your loved ones for you.

Now -- after a series of acquisitions and re-acquisitions so tangled it 
would take Herodotus to adequately chronicle them -- AT&T is back, it's 
big, and according to consumer advocates and some of the nation's largest 
technology companies, AT&T wants to take over the Internet.

The critics -- including Apple, Amazon, eBay, Google, Microsoft and Yahoo 
-- point out that AT&T, along with Verizon and Comcast, its main rivals in 
the telecom business, will dominate the U.S. market for residential 
high-speed Internet service for the foreseeable future. Currently, that 
market is worth $20 billion, and according to the Federal Communications 
Commission, the major "incumbent" phone and cable companies -- such as AT&T 
-- control 98 percent of the business. Telecom industry critics say that 
these giants gained their power through years of deregulation and lax 
government oversight. Now many fear that the phone and cable firms, with 
their enormous market power, will hold enormous sway over what Americans do 
online.

Specifically, AT&T has hinted that it plans to charge Web companies a kind 
of toll to send data at the highest speeds down DSL lines into its 
subscribers' homes. The plan would make AT&T a gatekeeper of media in your 
home. Under the proposal, the tens of millions of people who get their 
Internet service from AT&T might only be able to access heavy-bandwidth 
applications -- such as audio, video and Internet phone service -- from the 
companies that have paid AT&T a fee. Meanwhile, firms that don't pay -- 
perhaps Google, Yahoo, Skype, YouTube, Salon, or anyone else -- would be 
forced to use a smaller and slower section of the AT&T network, what 
Internet pioneer Vint Cerf calls a "dirt road" on the Internet. AT&T's 
idea, its critics say, would shrink the vast playground of the Internet 
into something resembling the corporate strip mall of cable TV.

The fears have been deepened by AT&T's new heft. Early in March, AT&T 
announced that it will spend $67 billion to acquire BellSouth, the phone 
company that serves nine states in the Southeast. The merger will make AT&T 
the nation's largest telecom company, and the seventh-largest corporation 
of any kind. According to one study, the new AT&T will take in almost a 
quarter of all money American households spend on communications services. 
In addition to maintaining a near monopoly on local phone and DSL service 
in 22 states, the new AT&T would provide land-line long-distance service 
throughout the country; cellular coverage through its subsidiary Cingular, 
the nation's largest wireless carrier; and soon, even television broadcasts 
to millions of Americans.

The government is expected to approve the AT&T-BellSouth deal, but the 
merger has already prompted debate in Congress and at the FCC over how this 
new behemoth may control content online. Currently, there are few rules 
governing what broadband companies can do on their network lines; if AT&T 
wanted to, for instance, it could give you only slowed-down access to the 
iTunes store unless Apple paid it a cut of every song you buy.

To fight back, online companies like Apple and Amazon, along with Internet 
policy experts and engineers, are pushing the government to draw up a set 
of rules to ensure what they call "network neutrality." The rules, debated 
this past February in a Senate hearing, would force broadband companies to 
treat all data on the Internet equally, preventing them from charging 
content companies for priority delivery into your house. AT&T and other 
broadband companies oppose laws to restrict how they operate online -- the 
free market, they say, will ensure an even playing field. In 2005, phone 
companies poured nearly $30 million into lobbying to ensure that the 
telecom industry remains free of regulation.

The battle may sound wonky but its outcome could well determine the shape 
of tomorrow's media universe. Increasingly, we're all using the Internet 
for much more than surfing the Web; film, music, TV and phone companies are 
looking at the network as the primary channel for delivering media into our 
homes, and AT&T and other telecom firms are spending billions to deploy 
deliciously fast fiber-optic lines to handle the expected traffic. The 
regulatory tangle between broadband providers and Web companies over 
network neutrality reflects a more fundamental fight over precious 
communications real estate -- a battle for control of the lines that will 
serve as our main conduit for media in the future.

Each side predicts dire consequences if its opponents win. Jim Ciccone, 
AT&T's senior executive vice president for external affairs, says that if 
broadband service is regulated, AT&T won't be able to recoup its costs for 
building these new lines -- "and then we don't build the network." The Web 
firms say that if the big broadband companies are allowed to charge content 
firms for access to your house, we'll see the Internet go the way of other 
deregulated media -- just like TV and radio, where a small band of big 
companies used their wealth to swallow up consumer choice. If broadband 
companies get their way, says Jeff Chester of the Center for Digital 
Democracy, the Internet will one day feature nothing much more exciting 
than "the digital equivalent of endless episodes of 'I Love Lucy.'"

In 2003, when Internet policy experts first began discussing network 
neutrality, their primary worry was that broadband providers would strike 
deals with certain Web sites to block people's access to competing sites or 
services online. For instance, what if Comcast worked with Barnes and Noble 
so that every time a Comcast Internet user pointed his browser to 
Amazon.com, he was instead redirected to BN.com? FCC officials have frowned 
upon the possibility of ISPs blocking certain Web sites, but they have not 
regulated against it; Paul Misener, the vice president for global public 
policy at Amazon.com, argues that "under current rules," a company like 
AT&T "would be able to block us without punishment."

Although such actions are theoretically possible, most experts concede that 
broadband firms wouldn't do something as brazen as blocking customers from 
going anywhere on the Web; such actions would probably prompt immediate 
regulation. Now Amazon, eBay, Google, Yahoo and others argue that broadband 
firms like AT&T, Verizon and Comcast are looking to institute a more subtle 
kind of discrimination. They're looking to "prioritize content from some 
content companies over others," Misener says.

In fact, AT&T is not at all secret about its plans. In an interview with 
BusinessWeek magazine last year, Edward Whitacre, AT&T's CEO, took a hard 
line against Web companies that oppose paying for high-speed access to 
AT&T's customers. "What they would like to do is use my pipes free, but I 
ain't going to let them do that because we have spent this capital and we 
have to have a return on it," he said of Google and Microsoft. "Why should 
they be allowed to use my pipes? The Internet can't be free in that sense, 
because we and the cable companies have made an investment and for a Google 
or Yahoo or Vonage or anybody to expect to use these pipes [for] free is nuts!"

The pipes Whitacre is referring to are those his company is building under 
a plan it calls Project Lightspeed, a multibillion-dollar initiative to 
install high-capacity fiber-optic Internet lines into thousands of 
residential neighborhoods across AT&T's service area. The company expects 
to serve about 18 million households with fiber-optic lines by 2008; 
Verizon has similar plans to roll out fiber lines. The new pipes will 
dramatically improve Internet speeds to home customers. Today a typical DSL 
line downloads data at about 1 or 2 Mbps, and cable modems run about double 
that rate. Advanced fiber-optic systems will see download speeds of at 
least 25 to 30 Mbps. Today's DSL can barely download a single 
standard-quality video stream in real time. In tests AT&T recently ran in 
San Antonio, Project Lightspeed lines carried three standard-quality 
streams and one high-definition stream down the line simultaneously.

What will customers do with all this broadband capacity? As the phone 
companies envision it, we'll use it to watch a lot of TV. Both Verizon and 
AT&T are betting heavily on a technology called IPTV, a service that 
delivers television signals into people's homes over the new fiber-optic 
Internet lines. According to the phone companies, IPTV will be a boon to 
consumers, delivering high-quality video and advanced services like TV 
shows "on demand," and providing much-needed competition to cable companies.

What's not clear, though, is what else -- besides watching TV -- customers 
will be allowed to do with the new lines. This is the heart of the fight 
over network neutrality. If you subscribe to AT&T's Project Lightspeed 
service, will you be able to use the 30 Mbps line coming into your house 
for, say, downloading high-definition movies from Apple, high-definition 
home videos from YouTube, or some other bandwidth-heavy application we 
haven't yet dreamed of? Or, instead, will AT&T reserve the line for its own 
TV service and for data from other companies that pay a fee -- thereby 
making AT&T the arbiter of content in your home?

At the moment, phone companies are cagey about their plans. What they will 
say is they're not going to stop their customers from getting to any site 
or service on the Internet. "Let me be clear: AT&T will not block anyone's 
access to the public Internet, nor will we degrade anyone's quality of 
service," Whitacre said in a speech to a trade conference in Las Vegas 
recently. "Period. End of story." But just because AT&T won't block people 
from accessing Google's videos doesn't mean it will give Google's videos 
the same status on the broadband pipe as other content -- meaning that 
while AT&T's TV service may come in at high-definition quality, those from 
competing firms might only run at standard-definition.

Indeed, AT&T and other network operators are building their networks in a 
way that would make it possible to split up network traffic into various 
lanes -- fast, slow, medium -- and then to decide what kind of data, and 
whose data, goes where, based on who's paid what. Broadband companies argue 
that engineering their networks in this way will benefit customers in two 
ways. First, they say, splitting up the Internet into several lanes will 
generally improve its efficiency -- the network will simply run better if 
it's more logically managed.

The phone companies' second argument concerns cost. If AT&T builds a 
blindingly fast new Internet line to your house but only allows some firms 
-- firms that pay -- to get the fastest service, it can significantly 
offset the costs of the build-out. And that's good for you, AT&T says, 
because if the company can charge the likes of Apple and Google to pay for 
the line, it doesn't have to charge you. "I think what we're saying is 
friendly to the consumer," Ciccone says. "If we're building the capacity, 
what we're doing is trying to defray some of the cost from consumers to the 
business end of this."

AT&T's critics don't buy this claim. They argue that by slicing up the 
Internet into different lanes, broadband companies are violating one of the 
basic network design principles responsible for the Internet's rise and 
amazing success. They add, too, that there's no proof that AT&T's plan 
would result in reduced broadband costs for home customers. Instead, 
consumers could lose out in a big way. If AT&T's plan comes to pass, the 
dynamic Internet, where innovation rules and where content companies rise 
and fall on their own merit, would shrivel. By exploiting the weaknesses in 
current laws, telecom firms would gain an extraordinarily lucrative stake 
in the new media universe. In the same way that a corporation like Clear 
Channel controls the radio airwaves, companies like AT&T could become 
kingmakers in the online world, granting priority to content from which 
they stand to profit most. Britney Spears, anyone?

To understand why critics worry about the future of the Internet in the 
absence of what they call network neutrality, it helps to look at the 
underlying philosophy of the ubiquitous network. Engineers are fond of 
describing the Internet as a "dumb network," a designation that's meant to 
be a compliment. Unlike other large communications systems -- phone or 
cable networks -- the Internet was designed without a specific application 
in mind. The engineers who built the network didn't really know what it 
would be used for, so they kept it profoundly simple, making sure that the 
network performed very few functions of its own. Where other networks use a 
kind of "intelligence" to define what is and what isn't allowed on a 
system, the various machines that make up the Internet don't usually 
examine or act upon data; they just push it where it needs to go.

The smallest meaningful bit of information on the Internet is called a 
"packet"; anything you send or receive on the network, from an e-mail to an 
iTunes song, is composed of many packets. On the Internet, all packets are 
equal. Any one packet hurtling over the pipe to my house is treated more or 
less the same way as any other packet, regardless of where it comes from or 
what kind of information -- video, voice or just text -- it represents. If 
I were to download a large Microsoft Word e-mail attachment at the same 
time that I were to stream a funny clip from Salon's Video Dog, the 
Internet won't make any effort to give the video clip more space on my line 
than the document, even if I may want it to. If the connection is too slow 
to accommodate both files at the same time, my video might slow down and 
sputter as the Word file hogs up the line -- to the network, bits are bits, 
and a video is no more important than a Word file.

The notion that the Internet shouldn't perform special functions on network 
data is known as the "end-to-end principle." The idea, first outlined by 
computer scientists Jerome Saltzer, David Clark, and David Reed in 1984, is 
widely seen as a key to the network's success. It is precisely because the 
Internet doesn't have any intelligence of its own that it's been so useful 
for so many different kinds of things; the network works consistently and 
evenly for everyone, and, therefore, everyone is free to add their own 
brand of intelligence to it.

Today's largest broadband firms, though, aren't accustomed to running dumb 
networks built on the end-to-end principle. AT&T ran the phone network at 
its own behest -- and the company usually benefited from it. Historically, 
in the telecom industry, "there's been this instinct toward control," says 
Tim Wu, a law professor at Columbia and a co-author of "Who Controls the 
Internet?" At firms like AT&T and Verizon, both of which have roots in the 
monopolistic old AT&T, there's now an effort afoot to reengineer parts of 
the Internet by introducing more intelligence to manage and control data.

One firm that has been a vocal proponent of prioritizing data is Cisco, the 
giant network equipment company whose products currently power much of the 
Internet. "We think that as people use their broadband connections more 
intensively, the need to manage traffic is going to increase," says Jeff 
Campbell, director of government affairs at Cisco. The company has designed 
an array of products that allows service providers like AT&T and Verizon to 
scrutinize everything on their networks extremely closely. One Cisco 
brochure (PDF) touts a system called the Cisco Service Control Engine, 
which is described as "a deep packet inspection engine that helps enable 
service providers to identify, classify, monitor, and control traffic" on 
the network. "Deep packet inspection" refers to the practice of looking at 
each slice of data on the network and determining exactly what kind of 
information it is -- whether it's part of an e-mail message, or a bit of a 
video file you're trading over Bittorrent, or perhaps a New York Times news 
story on the Web.

After examining each packet and deciding which user asked for it, where 
it's coming from, and what application it's meant for, the Cisco system 
allows network operators to assign various network privileges to the data. 
During a time of network congestion, data that is "delay-sensitive" -- like 
part of a voice phone call or a streaming video -- can be moved along the 
network in a hurry, while packets that represent less urgent data -- 
peer-to-peer file transfers, or downloads of e-mail attachments -- might be 
put on a slow lane. In this sort of network, were I to download a video 
file and a Word file at the same time, the network would notice it, and may 
decide to slow down the Word file so that the video file plays smoothly.

Many Web entrepreneurs and network policy experts think that giving 
priority to some traffic is good for the Internet. In February, Mark Cuban, 
the billionaire media entrepreneur and sports-team owner, posted a rant on 
his blog decrying the current state of network traffic management, and 
calling on broadband firms to offer high-speed service for some kinds of 
data. "There are some basic facts about the Internet that remind me of 
driving on the 405 in Los Angeles," Cuban wrote. "Traffic jams happen. 
There is no end in sight for those traffic jams. The traffic jams are worse 
at certain times of the day. Whether it's the 405 or the Internet." If we 
use carpool lanes to allow some cars to bypass traffic on our freeways, 
Cuban asked, why not add HOV lanes to the Internet, so that media that 
needs fast service can get to its destination more quickly?

Cuban is a co-founder of HDNet, a high-definition cable and satellite TV 
network, and has a particular interest in seeing the Internet give special 
treatment to certain files. In fact, the new Internet schemes are 
specifically designed to boost audio and video on the network. If your Word 
file slows down for a half-second during download, you're not going to 
notice it; but if your Internet phone call has a half-second interruption, 
it would annoy you to no end.

Opponents of neutrality regulations say other applications currently being 
designed for the Internet will only work well if the network is improved. 
For instance, imagine if you were watching an Internet TV broadcast of a 
basketball game that allowed you to switch to different camera angles 
during the game. That program would be only useful, says Campbell of Cisco, 
if the camera angles appeared instantly, not seconds after you switched. 
Other advocates point to new medical diagnostic devices with which 
hospitals can monitor the status of patients at home; in that situation, it 
would seem obvious to give such traffic priority.

"I guess we could leave the Internet in the dark ages and leave everything 
as an unprioritized, unorganized mass where all bits are treated the same," 
says Campbell. "But we think good network management technology will 
improve overall performance and consumers will have a better experience in 
the long term."

Despite Cisco's position, there is fractious division among network 
engineers on whether prioritizing certain time-sensitive traffic would 
actually improve network performance. Introducing intelligence into the 
Internet also introduces complexity, and that can reduce how well the 
network works. Indeed, one of the main reasons scientists first espoused 
the end-to-end principle is to make networks efficient; it seemed obvious 
that analyzing each packet that passes over the Internet would add some 
computational demands to the system.

Gary Bachula, vice president for external affairs of Internet2, a nonprofit 
project by universities and corporations to build an extremely fast and 
large network, argues that managing online traffic just doesn't work very 
well. At the February Senate hearing, he testified that when Internet2 
began setting up its large network, called Abilene, "our engineers started 
with the assumption that we should find technical ways of prioritizing 
certain kinds of bits, such as streaming video, or video conferencing, in 
order to assure that they arrive without delay. As it developed, though, 
all of our research and practical experience supported the conclusion that 
it was far more cost effective to simply provide more bandwidth. With 
enough bandwidth in the network, there is no congestion and video bits do 
not need preferential treatment."

Today, Bachula continued, "our Abilene network does not give preferential 
treatment to anyone's bits, but our users routinely experiment with 
streaming HDTV, hold thousands of high-quality two-way videoconferences 
simultaneously, and transfer huge files of scientific data around the globe 
without loss of packets."

Not only is adding intelligence to a network not very useful, Bachula 
pointed out, it's not very cheap. A system that splits data into various 
lanes of traffic requires expensive equipment, both within the network and 
at people's homes. Right now, broadband companies are spending a great deal 
on things like set-top boxes, phone routers and other equipment for their 
advanced services. "Simple is cheaper," Bachula said. "Complex is costly" 
-- a cost that may well be passed on to customers.

Expensive as they may be, the new network schemes will allow for myriad 
moneymaking opportunities. The new technology will allow AT&T and company 
to reserve the fast lane for the highest bidders. And AT&T says such a plan 
is perfectly fair. "It costs a lot to maintain and operate a network," says 
Ciccone of AT&T. "You don't pay for that by offering a raw pipe. We didn't 
build a copper line network a hundred years ago so people could do whatever 
they want on it. We offered a phone service. And you don't build networks 
so that somebody else can necessarily use them for free. We have the 
capability through dedicated lines of service for offering a high-quality 
product. There's a service there. We should be able to offer that in the 
market."

Ciccone is particularly galled by the fact that those who are the most 
opposed to AT&T's plans are enormous firms -- such as Google -- that want 
to make money by offering video services online. "This really is just 
coming from a couple companies who have plans to stream movies," he says. 
"They hide behind the guise of the innovator in the garage who's building 
the next big Google. That's a lot of hooey because the little guy is not 
streaming movies. This is about the companies that want to stream movies, 
and they want to not just compete with us but with cable companies in doing 
so. What disturbs them is that we're building network capacity to be able 
to accommodate ourselves with a very high-quality product, and the Googles 
won't be able to deliver the same quality."

Technology companies do say they fear AT&T's network won't provide a level 
playing field, and that AT&T's competitors won't be able to deliver videos 
that work as well as AT&T's content. Networks have finite space, and it is 
a fact of network engineering that when some data is given a priority on 
the network, other data will be pushed aside. At the Senate hearing, 
Stanford Law professor and Internet policy expert Lawrence Lessig argued 
that this will put companies or individuals that can't pay for high-quality 
service at an enormous disadvantage, "reducing application or content 
competition on the Internet." In the past year, streaming-video Web sites 
have proliferated on the Internet, and some of the most popular services 
have come from start-ups like YouTube. Under AT&T's plan, flush firms like 
Google would be able to pay for all the space on the line, leaving the 
smaller guys out of luck. The Internet has long been a meritocracy, where 
smart and creative companies can act quickly and beat out established 
players. That wouldn't be so on AT&T's Internet.

Broadband operators respond by declaring they will offer high-speed 
services to all companies, big or small, and anybody will be able to pay 
for a spot in the fast lane. "Generally companies shy away from doing 
exclusive deals," says AT&T's Ciccone. "You don't say I'm only going to 
provide telephone service to only one bank." But as Amazon's Misener points 
out, "This is a zero-sum game. If you prioritize anyone's content you 
necessarily degrade someone else's. That's how it works." When you convert 
one lane on a freeway into a toll lane, it's true that you make traffic 
better for cars that can pay. But you also make traffic worse for cars that 
cannot.

Indeed, that's what makes AT&T's plan so lucrative. The company can't offer 
fast service to everyone. If it did offer all companies access to the fast 
lane for a low fee, the lane would soon become congested and nobody would 
have an incentive to pay. To make the most money, the network operators may 
charge just a few firms huge sums to ride on the pipe. This means that one 
or two companies could lock in a preferred position on the network.

And AT&T's own services could benefit greatly from the new plan. For 
instance, AT&T offers a voice-over-the-Internet phone plan called 
CallVantage that competes with Skype, a free service owned by eBay. "Let's 
say there's a certain amount of revenue in voice services, maybe $125 
billion in voice," explains Wu. If AT&T determines that letting Skype onto 
the fast lane will cause it to lose customers and, thus, revenue, it could 
decide to only let Skype ride the slow lanes. "If you're going to lose $10 
billion to Skype by letting them on, why give them that money?" Wu says 
that under current regulations, this practice would be perfectly legal.

While such deals may be legal, AT&T says, they would be bad for business. 
If a broadband company didn't allow a popular service like Skype a spot in 
the fast lane, consumers would choose a different provider. "If you do make 
dumb decisions, your customers go somewhere else," Ciccone says. "Nobody 
wants to offer half a service with only special deals or arrangements for 
something of that nature. You're competing against other companies that may 
do it differently."

But if you don't like your Internet provider, would you really be able to 
go elsewhere? Cerf, who is now Google's chief Internet "evangelist," 
pointed out in the Senate hearing that only 53 percent of Americans now 
have a choice between cable modem and DSL high-speed Internet service at 
home. According to the FCC, 28 percent of Americans have only one of these 
options for broadband Internet access, and 19 percent have no option at all.

Moreover, phone and cable companies have been trying to reduce competition 
in the broadband business even further. They convinced the FCC to allow 
them to prohibit rival Internet service providers -- such as Earthlink -- 
from offering high-speed net access on phone- and cable-company-owned 
lines. (Phone and cable companies do lease their lines to independent ISPs 
like Earthlink, but under current rules they can decline to do so at any 
time.) AT&T, Verizon and Comcast have also pushed hard to stop cities 
across the country from launching free or low-cost municipal wireless 
Internet systems.

In this marketplace, if your DSL or cable modem provider begins to favor 
some content over others, you will have very little recourse. Even if you 
could choose another provider, doing so isn't easy. "It's not like there 
are two supermarkets in town and if you don't like one you can go to the 
other," Amazon's Misener says. He adds that "every economic theory we know 
suggests that when there's a duopoly" -- in this case between cable 
broadband and phone broadband -- "there will be tacit collusion in the 
market." So even if you could choose between broadband or cable service, 
eventually, like radio stations in any metro area, you will find they all 
sound the same. Or think about your cable lineup. When your provider 
doesn't carry the TV network you like, what choice do you have? Almost none.

At the moment, there are very few regulations that outline what broadband 
companies can and cannot do with content on their lines. So far, the FCC 
has only been willing to outline some principles to which firms should 
adhere. In a speech in Boulder, Colo., in February 2004, Michael Powell, 
the former FCC head, said that he didn't see the need for regulation. 
Instead, he set out a list of "Internet freedoms" that he "challenged the 
broadband network industry to preserve." Specifically, Powell called on 
high-speed network providers to allow their customers to access any legal 
content on the Internet, use any legal applications, and plug in any 
devices to their networks. The FCC later outlined these principles in a 
"policy statement," and imposed these conditions on Verizon and AT&T as 
temporary conditions of the mergers the companies underwent last year.

But while these "freedoms" allow customers access to any services, they 
don't outline whether AT&T can give some content priority on the network. 
In addition, there is a debate about whether Powell's "challenge" is 
enforceable at all. Last year, when one small North Carolina ISP began 
blocking Internet voice calls on its network, the FCC quickly stepped in 
and fined the firm. Telecom firms say the incident proves that the FCC has 
enough authority to block egregious behavior. But AT&T's Ciccone also 
acknowledges that adhering to the FCC's vision is a "voluntary commitment. 
It's not a rule or a regulation of the FCC. They laid out the broadband 
principles and our compliance is purely a voluntary act on our part."

Wu explains the issue this way: "Right now it's like the ghost of Michael 
Powell has his finger in the dike" protecting us against the worst behavior 
of big companies. But if you were starting a new service on the Internet, 
"do you want to bet your business on the ghost of Michael Powell?"

Today, as numerous proposals for reforming telecom law float around 
Congress, broadband firms are fighting hard against a neutral network, and 
apparently winning. (AT&T may certainly be on the government's good side, 
as it has been secretly allowing the National Security Agency to monitor 
its phone and Internet lines, according to a retired AT&T technician, as 
reported by Wired News.) In a party-line vote last week, Republicans on a 
House subcommittee defeated one neutrality proposal. According to many 
observers, another bill in the Senate, offered by Democratic Sen. Ron Wyden 
of Oregon, faces similar dim prospects. In addition to lobbying, broadband 
firms have launched a campaign aimed at urging Americans to join their 
fight. Large telecom firms back a "coalition" called Hands Off the 
Internet, which argues that instituting network neutrality amounts to 
government "regulation" of the Internet. On its Web site, the group -- 
which is funded by, among other companies, AT&T, and is headed by former 
Bill Clinton press secretary Mike McCurry -- beseeches, "Join us and say NO 
to government regulation of the Internet!"

Opponents say that regulation is the only way to save the Internet from the 
likes of AT&T. "They would have the pipe split between the public Internet 
-- which might get 1 Mbps speeds -- and a toll lane on the rest of the 100 
Mbps pipe they're laying," Tod Cohen, the director of government affairs at 
eBay, says of the AT&T's plans. By "public Internet," Cohen is referring to 
today's Internet, the Internet of Google, Blogger, Skype, YouTube and 
Flickr, services that came out of nowhere and are now indispensable. 
"They're saying, 'We'll leave the public Internet to be like the 
public-access station. But if you want to be on one of the fast channels, 
you have to pay.'"

Consumer advocate Chester sees a dark future for the Internet if big 
companies like AT&T gain unregulated control. "I think the public requires 
a serious national debate about what this means and what it's going to look 
like," he says. "There's a basic assumption that the Internet is going to 
remain forever open and diverse and affordable. I'm saying we should be 
cautious. We should really understand what these proposals mean for the 
kind of diverse voices we would want to see online."


================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
antunes at uh dot edu



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