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Superhighway toll booths have an ally: Cisco

In the growing debate over whether companies that send a steady stream of big video and other files over the Internet should pay extra for filling the pipeline, there is one group that has kept relatively quiet -- until now. Network companies such as Cisco Systems stand to reap billions if the government lets phone and cable companies divide Internet access into different tiers, an idea vehemently opposed by consumer advocates and firms like Google and Yahoo that distribute content around the globe.

Companies such as AT&T and Comcast want to charge Web sites more to guarantee quality transfers of high-bandwidth traffic -- such as video and phone calls. This, in turn, could affect how cheaply television-over-the-Internet prices may be, or affect the cost of Internet phone calling plans. While it's unclear exactly how much money networking companies could make modulating the Internet, the phone and cable companies that buy their equipment stand to gain an estimated $10.7 billion in extra revenue by charging for different tiers of service, according to a report by Light Reading industry analysts.

The Mercury News

Posted by | Mon, May 29, 2006 - 09:09 AM