House considers 2-tier Internet

A debate over the pricing of Internet services has evolved into a hotly contested issue in Congress. Major technology companies and an alliance of grass-roots organizations are squaring off against telecommunications giants over legislation with broad ramifications for the future of the Internet.

The battle could move to the House floor as early as today when lawmakers take up a massive overhaul of telecommunications law that would allow major cable and telephone companies to charge extra fees to businesses that want access to premium Internet services, effectively creating a two-tiered Internet.

Google Inc., Microsoft Corp., eBay Inc., and other major providers of Internet content that would be forced to pay millions in new fees are fighting the proposal, as is a coalition of groups from MoveOn.org to the Christian Coalition. They warn that a shift from equal access for all to the Internet could stymie innovation because small businesses won't be able to afford premium prices.

``The floor battle will be heated, and very emotional," said Jessica Zufolo, a senior director at Medley Global Advisors LLC, an independent equity research company in Washington. ``There's a lot of tension on this bill in the House."

At stake is the concept of ``network neutrality" -- the idea that all Internet data are treated the same. This is how the Internet works today, and many powerful interests want to keep it that way.

But the telecom companies want Google, Microsoft, and other Internet companies to pay extra for the right to send their data over the premium networks the telecoms are spending billions to build.

Network neutrality has dominated debate over the telecommunications reform act. The proposal being brought to the House floor supports the telecom companies ' effort to charge extra fees for access to premium Internet services, but there is bipartisan support for amendments that would bar such fees.

Google co founder and president Sergey Brin worked the halls of Congress on Tuesday urging support for network neutrality laws. Meg Whitman , chief executive of the giant Internet auction house eBay Inc., sent e-mails to a million eBay users, urging them to support network neutrality by writing to their members of Congress. A host of nonprofit groups, ranging from the left-wing MoveOn.org to the right-wing Christian Coalition, have launched Save The Internet, a website (www.savetheinternet.com) that's collected nearly 800,000 signatures on an Internet petition backing network neutrality laws.

The battle over network neutrality has transcended party lines . The telecommunications reform act was drawn up by Texas GOP Representative Joe Barton, chairman of the House Energy and Commerce Committee, and co sponsored by Illinois Democratic Representative Bobby Rush. A rival bill written by Wisconsin GOP Representative James Sensenbrenner would make premium Internet fees a violation of federal antitrust law. Another bill to outlaw premium Internet fees has been filed by Representative Edward Markey, a Malden Democrat.

Tod Cohen, deputy general counsel for eBay, warned that if premium fees are permitted, small online firms will be priced out of the premium Internet market. ``This has an enormous impact on small businesses," said Cohen.

Non profit groups also say they'll never be able to afford the fees. ``Independent local media will not be able to pay the toll," said Josh Silver, executive director of Free Press, a media watchdog group based in Northampton. ``By doing that, you take away the revolution of the Internet."

But Link Hoewing, vice president for internet and technology policy at Verizon, said a premium service would let his company recover the $2 billion it has spent on running high-capacity fiber-optic cables to millions of homes. ``Offering other things on these connections, in addition to Internet services, is essential to making these connections profitable," Hoewing said.

Hiawatha Bray can be reached at bray@globe.com.