Cisco Turns Traffic Cop

On the flip side, of course, the new tools allow the network operators to discriminate against would-be rivals if they choose.

"You can expect Yahoo! and eBay to be concerned that the phone companies will use it to thwart competition," says Forrester Research analyst Lisa Pierce.

To date, the snooping technology has only been effective on traffic that begins and ends on one company's network. But as outfits like Cisco build the capability into new traffic management systems, the telcos will gain greater power to discriminate.

The idea of Net neutrality is quaint but utterly unfounded as business imperatives determine where the market is going, say some analysts.

"We believe a delicate and dangerous battle between carriers and major Internet companies will emerge as technology and regulatory rules allow those that own transport networks begin to prioritize packets for some and 'derate' packets for others," says American Technology Research analyst Albert Lin in a recent report.

"From a regulatory perspective it can be done," says Forrester's Pierce, "and soon from a tech perspective, it will be possible."

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