Cisco Shreds 'Net Neutrality'

It may have been just the green light Cisco needed. In the wake of the decision, the networking giant, already eager to sell gatekeeping gear, has now started what looks like a new rush to add more discriminating technology to network security offerings.

Given the recent warming trend in the network gatekeeping sector, RBC analyst Mark Sue saw fit to initiate coverage on Allot Communications (ALLT Quote) with a buy Thursday. Sue expects to see rising demand for companies that develop products using deep packet inspection.

As the name implies, deep packet inspection helps network operators identify exactly what kind of traffic is moving through the pipes. Sue says this gives telcos and companies running their internal communications networks the ability to prioritize and "optimize their network infrastructure."

The phone companies say the technology can help guarantee different levels of service, giving priority to important time-sensitive info, which presumably can call for first-class pricing.

But industry watchers say discrimination cuts both ways. Outfits such as Net calling giants Skype, a unit of eBay (EBAY Quote), and Vonage (VG Quote) flourish on the broadband connections provided by communications titans such as Verizon (VZ Quote), Comcast (CMCSA Quote) and AT&T.

The phone and cable companies would obviously like to protect their core business from what they call freeloaders, and suppliers like Cisco, Juniper (JNPR Quote) and Allot are eager to sell solutions to that problem.