AT&T, Comcast and Verizon -- the nation's largest ISPs -- don't want to have to build networks constrained by so-called 'net neutrality' provisions that would ban them from giving preferential treatment to some services (such as their own streaming video server) over others (such as YouTube).

Congress said the networks had to be open, but left it to the Department of Agriculture and the Commerce Department's National Telecommunications and Information Administration to figure out what openness actually means.

The money being handed out isn't very much for the big operators, though it's simply a bluff for the companies to say they may not be applying for the funds.

They will apply; it's free money, for goodness sake.

The big telcos just want to prove their point -- that they don't want rules attached to their networks ever, even if it's Uncle Sam's dollars that paid for that fiber.

Jealous of billions made by ringtone sellers and search engines, ISPs are tired of just being the transport layer.

So they plan to run their own video services over their network, sell dedicated chunks of it to websites that can afford first-class service, and find other ways to make money with their network besides simply delivering bits to and from other people's computers.

by Ryan Singel for Wired.com

See Also:

• Net-Neutrality Backers, Telcos Spar Over Stimulus' Broadband Rules ...


• Feds Want Your Help With Broadband Policy


• Broadband Stimulus Plan: How About Some Data First?


• Wired-o-Nomics: Transparency as a Stimulus


• Obama Nominates Net Neutrality Backer for FCC Chief


• Comcast Beginning 'Net Neutrality' Testing


• Obama Campaign Denies Backpedaling on Net Neutrality