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I’m trying to parse the Google-Verizon deal which, as Om Malik says, appears to be a knife in the back of net neutrality.  The NY Times started it all off by announcing that:

“Google and Verizon, two leading players in Internet service and content, are nearing an agreement that could allow Verizon to speed some online content to Internet users more quickly if the content’s creators are willing to pay for the privilege. The charges could be paid by companies, like YouTube, owned by Google, for example, to Verizon, one of the nation’s leading Internet service providers, to ensure that its content received priority as it made its way to consumers. The agreement could eventually lead to higher charges for Internet users.”

This raises several questions. If Google is so concerned about traffic to YouTube being throttled back, why haven’t they also cut a deal with Comcast? (You may remember that back in April the DC Circuit Court ruled that the Federal Communications Commission didn’t have the authority to tell Comcast how to manage its bandwidth.) And why is YouTube traffic an issue now? Is YouTube a red herring — is this all really about bandwidth for, say, Google Music?

Very confusing.

Both Google and Verizon said uh-uh.  Here’s Google’s Public Policy Twitter feed:

“@NYTimes is wrong. We’ve not had any convos with VZN about paying for carriage of our traffic. We remain committed to an open internet.”

And Verizon’s PolicyBlog:

“The NYT article  regarding conversations between Google and Verizon is mistaken.  It fundamentally misunderstands our purpose. As we said in our earlier FCC filing, our goal is an Internet policy framework that ensures openness and accountability, and incorporates specific FCC authority, while maintaining investment and innovation. To suggest this is a business arrangement between our companies is entirely incorrect.”

(If someone could read between the lines in all that and explain the nuances to me, it would be much appreciated.) Anyway, now the other shoe has dropped. The Washington Post reports that the FCC-hosted talks on a national broadband policy have collapsed:

“Under criticism for its handing of closed-door discussions with certain companies on broadband policy, the Federal Communications Commission announced Thursday the meetings with Verizon, AT&T, Google and Skype were unsuccessful and that it would stop holding them. The announcement comes amid an apparent agreement between Verizon and Google on so-called net neutrality ground rules that would allow certain prioritization of Web sites on fixed wire networks and no rules on wireless networks. Sources familiar with the discussions at the FCC said reports Wednesday of a deal between Verizon and Google on net neutrality upset participants in the meeting, who were moving closer to agreement on stronger rules against blocking and slowing traffic on wireless and fixed-wire networks.”

So what gives? Has Google abandoned “Don’t Be Evil”? Again, I’m confused. But this story from Bloomberg makes a lot more sense to me:

“Verizon Communications Inc. and Google Inc. have struck their own accord on handling Internet traffic, as both participate in talks by U.S. officials on Web policy, two people briefed by the companies said. The compromise as described would restrict Verizon from selectively slowing Internet content that travels over its wires, but wouldn’t apply such limits to Internet use on mobile phones, according to the people, who spoke yesterday and asked not to be identified before an announcement. Verizon and Google have been adversaries over the issue, known as net neutrality. Verizon was among cable and phone companies saying they need leeway on the delivery of Web content to protect performance of their networks. Google led content providers and advocacy groups that say restrictions are required so communications companies don’t favor their own online offerings or those of partners that pay for higher speeds.”

See the difference? Verizon isn’t extorting money from Google. (“Nice little YouTube ya got here. It’d be a shame if anything happened to it.”) It’s actually a quid-pro-quo — Google preserves net neutrality while Verizon gets a free hand with its wireless traffic, which is much more lucrative.

At least that’s what it seems to me. I’m not naive, nor am I a Google fanboy. But who knows?