US Finance Sector puts Web Pricing in Crosshairs

US FINANCE SECTOR PUTS WEB PRICING IN CROSSHAIRS
[SOURCE: Reuters, AUTHOR: Kristin Roberts]
The U.S. financial sector, a powerful force in Washington, may be gearing up to jump into a Capitol Hill fight over the future of the Internet and stop an effort it says could add billions in costs just to maintain current offerings. For the financial services sector, which is expected to spend $117 billion on information technology this year, tiered pricing could add billions more in expenses to maintain online banking services and other Web offerings, according to a memo circulating among financial services lobbyists. Those costs could hit the bottom line or be passed on to customers. But it's a fight the financial sector almost missed. "Net neutrality is an issue that (financial services) firms ignore at their peril," Philip Corwin, a partner at Washington law firm Butera & Andrews, wrote in the memo. "If the industry does not engage quickly, it may find that the matter has been decided without its input and that the fallout will affect the industry's cost structure and customer relations for years to come," he added. The Corwin memo urged the financial industry to get the Senate Banking Committee and House Financial Services Committee involved, which could slow the progress of legislation. It also said the industry should prepare bills and push their introduction to assure the continuation of flat high-speed Internet pricing for online financial services. While the financial industry has plenty of muscle, it may be too late for that strategy, some lobbyists said. Instead, they may wait for legislation to get to conference, where House and Senate negotiators work out their differences. In that environment of closed-door bargaining, banks and credit unions might be able to secure the net neutrality language they seek, lobbyists said.
http://today.reuters.com/news/newsArticle.aspx?type=technologyNews&story...