Google-Verizon deal undermined stricter industry agreement at FCC

Net-neutrality talks at the Federal Communications Commission (FCC) were close to producing a stricter deal than a proposal offered by Verizon and Google last week that ultimately undermined the government-brokered meetings, according to sources briefed on the talks who spoke to the New York Times. 

The deal under consideration at the FCC by key industry stakeholders would have included stricter rules for how Internet service providers deliver traffic to wireless customers, according to the report. “We were very close,” one source told the Times. 

The FCC talks dissolved without a deal due to the revelation of Google and Verizon's separate proposal, according to sources. Google and Verizon's proposal exempts wireless services from its strictest rules. 

The revelation that Google's position on net neutrality is more lax than a near FCC deal seems sure to raise renewed frustrations from net neutrality supporters who have felt betrayed by Google in recent days.  

The FCC appears to remain open to a consensus solution. The stakeholder talks at the FCC involved Google, Verizon, AT&T, NCTA, Skype and the Open Internet Coalition (OIC). 

The wireless exemption authored by Google and Verizon has been a major sticking point for people who want strong protections for Internet traffic on all networks, not just on wireline networks. Around 100 protesters from MoveOn.org and Free Press demonstrated near Google's headquarters in Mountain View on Friday.

AT&T sounded strong support last week for the argument that wireless service is different than wireline and should not be subject to the same framework, a position that is consistent with the company's previous stance on net neutrality. AT&T said it did not have a role in the Google-Verizon deal. 

The OIC parted positions with Google, one of its key members, after it announced the Verizon deal by continuing to endorse strict rules for wireless. Other Internet companies, including Facebook, also want rules for wireless. 

Google said it took the position that it did "in the spirit of compromise." It argued in a blog post last week that the proposal is a step forward for net neutrality because it would impose tougher regulations than have been in place in the past.