The so-called network neutrality bill is expected to trigger a fresh round of fierce lobbying over Internet regulation, extending last year's telecommunications debate into 2007.

The nine-page "Internet Freedom Preservation Act" is intended to restrict high-speed Internet service providers from discriminating against competitors by offering preferential treatment to companies for a fee.

Democratic co-sponsors include three potential presidential contenders -- Sens. Hillary Rodham Clinton of New York, John Kerry of Massachusetts and Barack Obama of Illinois -- along with Senate Judiciary Chairman Patrick Leahy of Vermont.

On the other side of Capitol Hill, House Energy and Commerce Chairman John Dingell, D-Mich., told reporters Wednesday that passing network neutrality legislation would be a "high priority" this year.

He also indicated that there would be major telecommunications legislation in 2007, despite some industry predictions to the contrary.

Last June, Snowe and Dorgan failed in an effort to add network neutrality language to sweeping telecom legislation authored by then-Senate Commerce Chairman Ted Stevens, R-Alaska. The amendment was rebuffed on an 11-11 tie, but the larger bill eventually stalled.

The latest network neutrality proposal likely would require a broader legislative vehicle in order for it to move, sources said.

The latest developments on Capitol Hill come less than two weeks after AT&T's reluctant agreement to abide by network neutrality regulations for two years as a condition of its merger with BellSouth.

Jeannine Kenney, a senior policy analyst at Consumers Union, said the condition has provided an "impetus" for Internet restrictions to be applied to all broadband providers.

But, in a statement, Verizon Communications lobbyist Peter Davidson insisted that while his company supports the rights of consumers to fully access the Internet, it does not think legislation is necessary.

"Net neutrality -- better named net regulation -- is trying to solve a problem that doesn't exist," he contended.

The introduction of the Dorgan-Snowe bill coincides with plans by both chambers to bolster FCC oversight.

On Monday, Senate Commerce Chairman Daniel Inouye, D-Hawaii, announced a Feb. 1 hearing on the telecom marketplace that will feature testimony from FCC members.

While an FCC oversight hearing has not been scheduled by the House Energy and Commerce Telecommunications and the Internet Subcommittee, Dingell said Wednesday that he expects that one will be held.

Dingell also suggested that Rep. Edward Markey, D-Mass., the newly installed chairman Telecommunications and the Internet subpanel, would play an "activist" role on telecom matters.

Meanwhile, the Senate network neutrality legislation reflects Dorgan's increasingly higher profile on telecom and media issues.

In a recent letter to the North Dakota senator, FCC Chairman Kevin Martin -- a Republican -- agreed to complete a pending proceeding on television localism before finalizing the agency's review of the nation's media ownership limits.

The localism inquiry -- initiated in 2003 by Martin's predecessor, FCC Chairman Michael Powell -- explores how TV broadcasters can best serve their communities through original news and public affairs programming.

Martin's pledge came in response to a request last month from Dorgan and eight Senate colleagues critical of media consolidation.

They urged Martin to tackle the localism item first and not give it short shrift by folding it into the broader ownership proceeding, a move they warned would cause them "grave concern."

The other signers of that letter included two Republicans: Snowe and Senate Minority Whip Trent Lott of Mississippi.

Martin also agreed to conduct two remaining localism hearings, including one in Maine, that had b een planned but which were never held.