In a move that takes internet closer to being fee based, an amendment that would have barred telcoms from charging extra fees was defeated.

One Step Closer to a Fee-Based Internet – –

A Republican-controlled House committee yesterday rejected a measure by  U.S. Rep. Edward Markey (D-Malden) that would have barred  telecommunication companies from socking Web sites with extra fees based  on bandwidth usage.Markey's so-called "Internet neutrality" amendment was defeated on a 34-22 vote by members of the House Energy and Commerce Committee.

The rationale from the telcoms:

"It's (Internet) a solution in search of a problem," said Brian Dietz, a  spokesman for the National Cable and Telecommunications Association. The  Internet has developed without laws dictating pricing — and any such  measures will "stifle innovation and investment," he said.

Many diverse bedfellows have come together to show their concern about this direction, including Google.

Among others, Google has expressed concern that firms such as AT&T might  start charging extra fees on heavy bandwidth users. Bloggers have complained they, too, might end up having to spend money to maintain sites if a  two-tiered system is implemented.

Relevance to Bankwatch:
Generally this direction seems to lead towards high bandwidth use, so file downloading of movies, and music could be first hit. Banks are in that category, in the areas of push to talk, chat, and customer file sharing. A worrying trend to watch. Expect other directions than high bandwidth usage, as Telcoms seek additional revenue streams.

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