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See the best of Reuters photography. See more | Photo caption Syria's displaced animals A look at animals caught in the crossfire of the Syrian civil war. Slideshow Seattle's marijuana experts Voters in Washington state approved an initiative legalizing marijuana. A look inside Canna Pi, a medical marijuana dispensary in Seattle. Slideshow Sponsored Links New net rules would hit digital economy: diplomat Tweet Share this Email Print Related News Special Report: How foreign firms tried to sell spy gear to Iran 1:24pm EST U.S. fails to win early limit on Net controls at global gathering Tue, Dec 4 2012 EU set to fight Internet tax and "spying" at global summit Fri, Nov 30 2012 Bitter struggle over Internet regulation to dominate global summit Tue, Nov 27 2012 Related Topics Tech » Media » United Nations » By Matt Smith DUBAI | Wed Dec 5, 2012 2:50pm EST DUBAI (Reuters) - Inter-governmental regulation of the Internet could deter investment, raise costs for consumers and hinder online access, a U.S. diplomat said on Wednesday. The United States has been leading efforts to stop a United Nations body from extending its authority into cyberspace. U.S. Ambassador Terry Kramer reiterated his country's "hands off" message at a summit hosted by the International Telecommunication Union that could decide the future of the Internet, at present largely unregulated at a global level. "We are concerned some of the proposals could create an investment environment that is very tenuous," Kramer told Reuters. "We need to be very mindful that we are not creating new, much greater problems than we are solving." About 150 countries are gathered to renegotiate an ITU treaty that was last updated in 1988, before the Internet and mobile phones transformed communications. Western Internet companies and rights groups are fiercely opposed to proposals that would require companies to identify Web users at the demand of national governments, which would make it easier for countries to identify and punish dissidents. Activists operating under the Internet banner Anonymous said on Wednesday they would organize public protests. A short time later, a denial-of-service attack was launched against the ITU's main website. Such attacks, in which thousands of computers try to connect to the same site simultaneously, can temporarily overwhelm the target with traffic, though they do not breach security or cause lasting damage. The ITU site was rendered at least temporarily unavailable to net users in some regions and was sluggish afterward. The United States wants to restrict the debate in Dubai to conventional telecoms, and two of its three core recommendations have been approved, Kramer said. Member states have agreed the definition of 'telecommunications' should remain unchanged, while the treaty's introductory passages, relating to its scope, will also be unaltered. The third recommendation, still being debated behind closed doors, is a technical, but important distinction that the treaty should relate only to "recognized operating agencies" - conventional telecom operators - and not "operating agencies." The latter definition would potentially place the likes of Facebook, Google and government and business networks under the jurisdiction of the ITU. "These sectors have done incredibly well without almost any regulation at all," said Kramer. The United States and its allies, including Australia, Canada, Europe and Japan, want a strict delineation between the two, while other countries say the two are now inseparable and both should be governed by ITU legislation. The United States says that allowing the Internet, and with it content, to come under global regulations would pave the way for online censorship and restrictions on free content. "There are still a lot of countries seeking to sweep the internet into this, and some of them have got ulterior motives," said Kramer. Some African and Arab states have adopted proposals from a European telecom association to introduce charges to companies such as Google if they deliver content to networks abroad. Telecom operators' voice revenue is in decline, and they claim the investment needed to keep up with surging demand for data does not justify the returns. "If there is a charge imposed on developers of content and applications that could significantly curtail traffic, it would potentially exacerbate the digital divide because a lot of countries would not receive the traffic they need," said Kramer. (Additional reporting by Joseph Menn in San Francisco; Editing by Dan Lalor and Peter Henderson) Tech Media United Nations Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. 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