Consumer groups target "double dipping"

Bolstered by a survey that shows consumers want to keep the Internet open and the backing of Federal Communications Commissioner Michael Copps, a trio of consumer organizations today called on the U.S. Congress and the FCC to act more decisively to protect Internet neutrality.

Specifically, the Consumer Federation of America, the Consumers' Union and the Free Press targeted what they called "double dipping" or service provider plans to sell premium access at premium prices. At a press event today in Washington, the three groups also unveiled a survey showing growing importance of the Internet to average Americans and growing concern that its openness might be damaged by commercial interests.

BellSouth has specifically come under fire for saying publicly it might offer the Googles, Yahoos and AOLs of the world the opportunity to deliver content to users much faster, at a higher price.

"There needs to be a prohibition on discriminatory pricing for content providers," said Jeannine Kenney, senior policy analyst for the Consumers Union. "If a content service provider has to pay for high speed access when the consumer is already paying for that access, you can be assured that start-ups won't be able to get off the ground, we won't have innovation, and we will lose competition. This is the same thing as asking a sender and a receiver to pay to get an overnight FedEx package--it's double dipping."

"What's at stake here is the future of the Internet," said Ben Scott, policy director of the Free Press. If bigger companies had been able to buy better Internet access 10 years ago, companies such as Yahoo!, eBay and Google probably wouldn't exist today, he said. In addition, it is likely that content providers will turn around and pass on the extra fees to their customers, who already are paying for high-speed access.

Consumer groups are particularly concerned that, as cable and telephone companies become a high-speed duopoly, they will form a cartel with other large operators that will stifle Internet start-ups and reduce consumer options, said Mark Cooper, CFA executive director.

Copps opened the press conference by agreeing that "the more concentrated our facilities providers are," the greater the danger that "Internet gatekeepers" will restrict access and destroy the openness of the Internet.

The survey announced at today's press event showed consumers in large numbers want an open Internet, with just over half saying Congress should take action to preserve Internet neutrality. Just under half --42%--said they didn't think private companies would act to protect Internet openness.