Verizon, Google 'Net Neutrality' Debate

Google Inc. and Verizon Communications Inc. called for equal treatment of most Internet traffic while at the same time saying fast-growing cellular networks and yet-to-be-developed broadband services should be exempt from such restrictions.

Google and Verizon released a proposal arguing that broadband providers shouldn't be able to discriminate against Internet content providers.

The ideas outlined in the proposal put forth by the Internet search giant and one of the largest broadband providers stand in contrast to the Federal Communications Commission's recent proposals on "net neutrality" rules, which would prevent companies from giving preferential handling to certain types of online traffic.

The joint endorsement of exempting wireless services from net neutrality is a significant victory for cellular broadband providers such as Verizon, which have said that excessive regulation of those services would stifle their investments.

Cellular Internet access is becoming an increasingly important profit center for telecommunications companies as more consumers adopt mobile Web tools such as smart phones like the iPhone and phones based on Google's Android software.

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CenturyLink and Qwest, Merger Agreement Approved

CenturyLink and Qwest Communications announced that their boards of directors have approved an agreement under which CenturyLink will acquire Qwest in a tax-free, stock-for-stock transaction.

Leveraging CenturyLink's proven integration experience, the transaction is expected to generate annual operating and capital synergies of approximately $625 million when fully recognized over a three- to five-year period following the close of the transaction. As of December 31, 2009, CenturyLink and Qwest served local markets in 37 states with approximately 5 million broadband customers, 17 million access lines, 1,415,000 video subscribers and 850,000 wireless consumers.

This combination will result in a company whose enterprise business will be a significant contributor to its growth which, along with the consumer business, will allow it to offer innovative broadband products and services over its advanced networks.