Good Morning Tech

The Federal Communications Commission cancelled its stakeholder discussions on Thursday, one day after reports that Google and Verizon have reached an agreement that would allow carriers to charge higher fees for providing faster access to some content. Sources familiar with the discussions said stakeholders remained stuck on key issues such as paid prioritization and whether the rules should apply to wireless services. FCC chief of staff Edward Lazarus said the talks had failed to generate a framework for net neutrality rules, but the Commission will keep all options on the table.

Any such regulation would likely first require the FCC move forward with its proposal to re-classify broadband as a telecom service. That proposal has drawn resistance from lawmakers, but Genachowski appears to have the votes necessary for the Commission to move forward.

The Google-Verizon deal

Sources told Hillicon Valley that the Google-Verizon deal would not apply to Verizon's wireless networks and would open the door to ISPs charging more for "managed services" which are not considered part of regular broadband Internet access but make use of the same pipe. Both companies declined to comment on the discussions and denied aspects of the story as reported by the New York Times.

Net neutrality advocates fear the two sides will team up to pitch their compromise to lawmakers as a baseline for any public policy regarding the management of Internet traffic. Gigi Sohn, president of Public Knowledge, called the reported deal a "business agreement between two corporate behemoths" and said it was by definition "not net neutrality."

Sohn accused Google of shifting its definition of net neutrality in favor of its corporate interests; the search giant responded that it "has always and will continue to support an open Internet." Google CEO Eric Schmidt said Wednesday that it would be acceptable for carriers to treat certain classes of content such as video or VoIP differently, so long as they don't allow third parties to pay for their content to be prioritized.

Genachowski said Thursday that "Any outcome, any deal that doesn't preserve the freedom and openness of the Internet for consumers and entrepreneurs will be unacceptable." Pressure will now mount on the chairman to take decisive action in the absence of serious legislative negotiations.

Sen. Nelson opposes broadband reclassification. Sen. Ben Nelson (D-Neb.) became the fourth Democratic senator on Wednesday to publicly oppose the FCC's plan to reclassify broadband as a telecom service. Nelson expressed concern that unilateral action from the FCC could lead to an uncertain regulatory climate that could stymie broadband development in his home state.