Senate deals blow to Net neutrality

By Declan McCullagh
News.com

http://news.com.com/Senate+deals+blow+to+Net+neutrality/2100-1028_3-6089197.html

Story last modified Wed Jun 28 19:41:11 PDT 2006



WASHINGTON--A U.S. Senate panel narrowly rejected strict Net neutrality 
rules on Wednesday, dealing a grave setback to companies like eBay, Google 
and Amazon.com that had made enacting them a top political priority this year.

By an 11-11 tie, the Senate Commerce Committee failed to approve a 
Democrat-backed amendment that would have ensured all Internet traffic is 
treated the same no matter what its "source" or "destination" might be. A 
majority was needed for the amendment to succeed.

This vote complicates Internet companies' efforts to convince Congress of 
the desirability of extensive new regulations, especially after the House 
of Representatives definitively rejected the concept in a 269-152 vote on 
June 8.

Republican committee members attacked the idea of inserting Net neutrality 
regulations in a massive telecommunications bill, echoing comments from 
broadband providers like AT&T and Verizon, which warned the rules were 
premature and unnecessary. Alaska's Ted Stevens, the committee chairman, 
accused his colleagues of "imposing a heavy-handed regulation before 
there's a demonstrated need."

What's more, Republicans warned, adding the regulations would imperil the 
final passage of the broader telecommunications bill, which is the most 
extensive set of changes since 1996. "This is absolutely a poison pill," 
said Nevada Republican John Ensign.

Democrats had rallied behind an amendment, adapted from a standalone bill 
they offered in May, which would have barred network operators from 
discriminating "in the carriage and treatment of Internet traffic based on 
the source, destination or ownership of such traffic." That could have 
prevented Verizon from inking deals to offer high-definition video and 
prioritizing that on its network, for instance.

Without new rules prohibiting such practices, "we're giving two entities, 
the Bells and cable, the power to be able to cut deals, and that will 
change the relationship of entrepreneurs to the Internet and to the 
financial marketplace," said John Kerry, the Massachusetts Democrat.

The concept of network neutrality, which generally means that all Internet 
sites must be treated equally, has drawn a list of high-profile backers, 
from actress Alyssa Milano to Vint Cerf, one of the technical pioneers of 
the Internet. It's also led to a political rift between big Internet 
companies such as Google and Yahoo that back it--and telecom companies that 
oppose what they view as onerous new federal regulations.

By a 12-10 vote, senators also rejected a second amendment that was 
broader. The amendment, proposed by Hawaii Democrat Daniel Inouye, included 
not just Net neutrality anti-discrimination language but also addressed 
topics such as video franchising and universal service.

Then, by a 15-7 vote, senators voted to send the broader telecommunications 
bill--called the Communications, Consumer's Choice, and Broadband 
Deployment Act--to the full Senate for a vote. Its fate there is hardly 
assured, though a Net neutrality amendment is likely to be offered in any 
floor vote.

In a statement after the votes, Verizon urged the Senate to act swiftly on 
the bill, claiming that delays in boosting video competition will cost 
consumers billions of dollars a year in higher cable bills.

But Sen. Ron Wyden, an Oregon Democrat, said Wednesday that he would seek 
to prevent a floor vote on the telecommunications bill because it did not 
include extensive Net neutrality regulations. "I will object to any further 
action on this telecommunications bill until it includes a strong net 
neutrality provisions that will truly benefit consumers and small 
business," Wyden said, a promise that has teeth because the Senate often 
works through unanimous consent.

The Republican-backed bill does include some Net neutrality regulations. It 
would, for instance, create an "Internet consumer bill of rights" to be 
policed by the Federal Communications Commission. That would permit 
punishment of network operators who interfere with their subscribers' 
ability to access and post any lawful content they please, to use any Web 
page, search engine or application (including voice and video programs), 
and to connect legal devices to the network.

Stevens defended those rules against Democrats who charged they were not 
extensive enough. If companies like Google, Microsoft and Amazon got their 
way, Stevens warned, "our costs for individual access to the (Internet) 
will double."

All the Republican committee members except Olympia Snowe of Maine voted 
against the more regulatory Net neutrality amendment. All the Democrats 
voted for it. The amendment was sponsored by Snowe and Byron Dorgan, a 
Democrat from North Dakota.


================================
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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