Bell South and AT&T announced Tuesday plans to offer an Internet fast lane, setting aside a segment of DSL broadband lines that would guarantee fluid delivery of movies, games and other broadband content. Neither company has said how much it plans to charge for the service.
The idea behind a “two-tiered” Internet has been batted about by telephone and cable company lobbyists since December, much to the chagrin of many large content properties like Google, Yahoo and MSN. On one hand, the telephone and cable companies argue they have the right to make certain websites function better than others because they laid the cable for the users’ link to cyberspace. On the other hand, existing content providers say the move would destroy equal opportunity on the Internet, forcing companies to pay the extra fee if they want their broadband content to be competitive.
“They’re looking to create a two-tiered system,” telecom analyst Jenn Freedman told XBiz. “Think of it like the difference between basic and premium cable packages, only on a much larger scale.”
Bell South and AT&T have argued the move is a means to earn back the billions spent setting up broadband services — as well as manage the burgeoning growth of video-on-demand — and that the system would keep prices lower for the average consumer.
But Google's policy counsel, Alan Davidson, said the end result would give them too much control.
“Our concern is that carriers are being given the power to control what consumers do and see online,” he said.
Google can afford the premium fees, Davidson added, but many cannot, meaning innovative new companies might be seriously constrained.
The two-tiered debate is expected to kick off in Washington at a Senate Commerce Committee hearing today.
