There are of course a lot of moving pieces surrounding this debate, and however the chips fall, it’s going to have a long-term effect over how the Internet operates over the next several years.

Earlier this year, FCC Chairman Julius Genachowski was dealt an important setback when the U.S. Court of Appeals ruled that the FCC doesn’t have the legal authority to impose net neutrality rules on broadband providers. In hopes of still finding a way to rein in the providers, he’s since circulated new proposed rules that would require providers to disclose what kind of traffic they intend to throttle and why, giving consumers a little more information so they can make a more informed choice when picking a provider. And in a speech on Dec. 1, Genachowski also expressed support for “usage-based pricing,” which would essentially allow providers to charge variable pricing plans where consumers would pay higher fees for using higher amounts of bandwidth.

Certain Internet companies that aren’t providers, but who rely on having unfettered pipes through which they can deliver their services, aren’t happy with the proposed rules either. Companies like Amazon, Skype and Netflix, want stronger rules that would prevent the providers from slowing down traffic from their sites or blocking them altogether. They’ve even pushed the FCC to reconsider regulating the Internet outright as a telecommunications service, as it does the telephone system today, an idea that Genachowski briefly considered, then abandoned.

No surprise, they’ve been lobbying the FCC heavily, as have the telecom providers. According to Capital Business, a Washington Post publication, 150 organizations have hired 118 lobbying firms to try to influence the outcome of tomorrow’s vote.

The pressure isn’t stopping there. Republican commissioner Robert McDowell has pledged to vote against the rules, saying, as he did in a Wall Street Journal op-ed today, that imposing regulations would threaten everything that makes the Internet a source of innovation. Commissioner Meredith Baker Attwell, also a Republican, has attacked the proposal and similarly pledged to vote against it, arguing that only Congress, not the FCC, has the authority to regulate the Internet.

Congressional Republicans, with their heads full of steam after their November electoral wins, are rushing into the fray. Michigan’s Republican Representative Fred Upton, who will chair the House Energy and Commerce Committee when the new Congress comes into session early next year, wrote Genachowski and called his proposal “the most controversial item the FCC has had before it in a decade.”

Meanwhile, Congressional Democrats are pressing fellow Democrat Michael Copps to vote for Genachowski’s rules, fearing that a vote against them would hurt President Obama politically, as Sara Jerome wrote in Hillicon Valley. In the end, he is expected to fall in line and vote in favor.

Perhaps a harbinger of things to come is the spat between Level 3 Communications and Comcast. Level 3, which operates much of North America’s fiber-optic network, last month accused Comcast of “trying to set up a toll booth” by charging Level 3 recurring fees whenever a Comcast subscriber streamed content that got delivered by Level 3. This happened right after Level 3 cut a deal to become the primary delivery network for Netflix.

The dispute has reached sufficient intensity for Level 3 to ask federal regulators to impose conditions on Comcast in its efforts to acquire NBC Universal, arguing that Comcast’s demand for the fees “adversely changes the nature of the Internet.” The FCC may yet get serious about reviewing the merger, as Politico reported last week.

Comcast for its part has argued that Level 3 is gaming network peering rules, and has “demanded unlimited capacity at our cost.”

Whatever the outcome of tomorrow’s vote, expect lots of unhappy people.

The issue gets to the heart of a longstanding argument: Who should pay for the Internet? That debate is getting more pointed as a flood of video drives up the volume of traffic that companies such as Comcast Corp. must carry.

On Monday, Level 3 Communications Inc.–an Internet network operator that recently announced a deal to help Netflix Inc. stream and store its online movies and TV shows–complained that Comcast has slapped it with a new charge to deliver that video to customers.

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Level 3 Communications Inc., which this month unveiled a deal to help Netflix store and stream its movies, accused Comcast of imposing new fees for delivering videos and other content to the cable giant’s customers. Comcast quickly fired back that Level 3 was seeking to burden it with extra Internet traffic without compensation.

The dispute fans the flames of the so-called net neutrality debate over how to handle Internet traffic. Federal regulators, who have yet to adopt rules that require Internet service providers to treat similar types of traffic equally, are set to decide this week whether to vote soon on proposed new guidelines.

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Fetyko asserts that Akamai’s CDN pricing “remains way out of line”–30-100 percent higher–compared to its largest competitors, Limelight (LLNW) and Level 3 (LVLT). He contends the high prices are resulting in lost deals, including two large e-commerce customers recently. Fetyko writes in a research note that Limelight is picking up market share, “and is expected to make a couple of meaningful announcements” on new customers shortly.

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With the naming of Oracle (ORCL) President Charles Phillips to President Barack Obama’s 16-Member Economic Recovery Advisory Board a few days ago, another Silicon Valley tech mandarin fell off the list to become America’s first chief technology officer.

The job–which was promised by President Barack Obama during his campaign and underscored when he released a memorandum on transparency and open government that outlined some of the CTO duties the day after he was sworn in–remains unfilled.

In fact, so does the Federal Communications Commission chairman’s post, which insiders said a month ago would go to former IAC/InterActiveCorp (IACI) exec Julius Genachowski. But he has not been nominated yet.

Both Genachowski and Phillips were on a short list floated in November by The Wall Street Journal for CTO. The third name on it, Level 3 (LVLT) exec Don Gips, has since been named to a high-level White House job.

While the continuing economic crisis has sucked all the oxygen from the room, the Obama administration has still made a lot of promises about tech issues, from improving broadband to making the government more transparent and digital.

So, who is getting the job as head geek?

Could it be well-known entrepreneur Mitch Kapor? Google (GOOG) guru-in-resident and Internet father Vint Cerf? Or some other tech-savvy Silicon Valley figure?

BoomTown is, of course, rooting for Steve “Woz” Wozniak. Once he wins “Dancing With the Stars” this season, he will be the only nerd capable of the two-stepping one needs to survive in Washington.

Post new guesses in comments below.

And, until someone is appointed to fix the nation’s computers, here is the Jan. 21 memo Obama released about some of the tasks ahead for America’s CTO:

MEMORANDUM FOR THE HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES

BARACK OBAMA

[Photo of the t-shirt from ThinkGeek.]