Telco story needs a rewrite

It's time the telco world faces some hard facts. Despite all the feel-good advertising of the past decade and the blitz that's about to come from the “new” AT&T, telcos still have an image problem. It's going to get a lot worse if they don't change their story lines on the issue of network neutrality.

In case you haven't been paying attention, voluntarily or otherwise, to the noise coming from Washington lately, net neutrality jumped from a simmering topic to the front burner after BellSouth suggested it will begin charging portals such as Google and Yahoo a premium for guaranteed bandwidth used to deliver streaming video and other products. The issue is picking up steam and is expected to get plenty of play inside the Beltway in the next few months. And this is where all carriers must start rehearsing.

Telcos are right to want compensation for the bandwidth used. In fact, they have the right not only to charge for the cost of the bandwidth, but also to include as much markup as the market will bear. After all, business is business. They're also right in the belief that content and services provided under their brands should be given high priority in the same way that grocery stores often feature their house brands.

Likewise, if content providers and aggregators want to be guaranteed that their subscribers are getting the best possible experience, they shouldn't be shocked that those that paid for and built the path into the home will want a little extra to smooth the way. If content providers want to finance alternative delivery methods, they're free to do that, and in fact, many are exploring alternatives.

Where the telco argument falls apart, though, is in the belief that lawmakers and regulators need to get involved. Carriers need to get in front of this issue, not through legislation and regulation, but through commercial agreements and unified voices with content providers. Opponents of the plans have made a smart political move by framing the debate as a First Amendment issue. Under their scenario, telcos not only provide preferential access to the Googles and Yahoos of the world, but also degrade “best-effort” service to the point that only the largest providers would have access to a suddenly limited broadband pipe.

Critics also argue that there is plenty of bandwidth to go around, based on carriers' own public statements, and that the only way non-affiliated programmers are impacted is through heavy-duty traffic shaping. Some carriers have been slapped once already for blocking Vonage calls. Telcos attempting to block or slow content from providers that don't pay a premium will be caught by watchdog groups, many of whom are casting BellSouth as an Orwellian overlord.

There is a middle ground on this issue, but it will require concessions from both sides. Carriers must rewrite the story line, dropping scenes with legislators and regulators, and focusing their message not on the premiums paid, but on the ability to offer all consumers a truly open experience.