Until now all of the talk of a two-tiered internet swirled around voice-over-IP (VOIP) vendors and Google’s ad revenue. It was difficult to wrap a mind around the idea that the internet would ever be anything other than a fulfillment of its original design—an open and neutral network. In a neutral network, carriers treat all data traveling on the network equally. A two-tiered strategy would allow carriers to prioritize their own data traffic—or that of the highest bidder—over that of their competitors. Network neutrality is what has allowed carriers to argue that they are common carriers rather than publishers. Network neutrality allows the best products to bubble to the top; common carrier status allows the telephone companies and internet service providers to disclaim any responsibility for content carried on their networks.
But carriers—mostly the Baby Bell and cable duopolies—are starting to venture into the realm of tiered service, such as offering prioritized VOIP service at a premium. The not-so-clear implication is that other, non-premium, traffic will be relegated to a lower priority of service on the network. Some carriers were starting to block VOIP traffic until the Federal Communications Commission (FCC) forced them to stop. Some providers deny they’re prioritizing certain traffic (or more accurately, assigning what they call parasitic traffic such as VOIP and BitTorrent lower priority on the network). Others admit they’re using “traffic shaping” techniques to prioritize certain data traffic on their networks.
There’s some indication that providers may be gearing up to charge different rates for different types of traffic, including servers. BellSouth’s Chief Technology Officer, William L. Smith, recently broached the topic by speculating that charging premiums to websites for prioritized traffic—Yahoo might pay a premium to have its pages load faster than Google’s, for example—might constitute a viable business model.