07 March 2006

AT&T deal puts focus on Net fees

By Paul Davidson, USA TODAY

AT&T's (T) proposed purchase of BellSouth (BLS)gave fresh ammunition Monday to critics of a push by the big local phone companies to charge websites fees to ensure fast delivery of their content.

Even before the deal, AT&T and BellSouth discussed plans to charge Internet-based phone company Vonage, Google and other Web providers new fees to ensure speedy delivery of their phone calls, video or other content. Though proposals in Congress would bar phone companies from blocking access to rival websites, none would prohibit their offering enhanced services.

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