Telcos Propose 2-Tier Internet

cshirky writes "Boston.com is reporting that 'AT&T Inc. and BellSouth Corp. are lobbying Capitol Hill for the right to create a two-tiered Internet, where the telecom carriers' own Internet services would be transmitted faster and more efficiently than those of their competitors.' The telcos basic fear, of course, is that the end to end design of the net (PDF version) will erode the telcos ability to use service charges to generate revenue for delivering video and voice; the proposed solution is to break end-to-end in order to protect pricing leverage over the users." We reported on this at the beginning of the month, when it was just speculation. Not any more.

Comments

Re:Time for another breakup?

[xs650]

So the last ones standing are AT&T and SBC. And they will merge very soon,

It already happened on November 21st of this year.

http://www.schwabpt.com/downloads/support/T_SBC_21 Nov05v3.pdf

"Important Information about the new AT&T Inc. The AT&T Corp. ("AT&T") and SBC Communications Inc. ("SBC") merger completed effective November 21, 2005. The newly formed company is known as AT&T Inc. Initially AT&T shares will be exchanged for SBC shares under the 'SBC' ticker symbol. On December 1st, 2005, the newly formed company will take back the symbol 'T'"

Re:Why ask Congress?

[pthisis]

Because the wires wouldn't have gotten run without eminent domain.

Prove this. The original telegraphy and radiotelegraphy was created without government funding or mandate.

Absolutely untrue. The original telegraph companies had government-backed eminent domain powers. Further, they often relied on railroad landed (acquired through eminent domain). There were constant battles between the two; see, for instance, Western Union Tel Co v. Pennsylvania R Co, 195 U.S. 594 (1904), available at: http://caselaw.lp.findlaw.com/scripts/getcase.pl?c ourt=us&vol=195&invol=594

The Pennsylvania statute (mentioned in that ruling) granting eminent domain to the telegraph company was absolutely typical, and telegraph companies in the US relied on such mandates. Normally such power was granted to a single company, giving it a monopoly in the state or region.