FCC expected to propose very strong net neutrality rules

The debate over net neutrality is sure to reignite as the FCC is going to outline the framework for new rules which will likely fall more in line with the content providers’ and activists’ views than much of the industry’s preferences.

Not all the communications companies are on the same page when it comes to the regulation of data. Sprint, who also operates a Tier 1 backbone, has been receptive to expected rules which might fall under Title II, part of a telecommunications regulation regimen that dates back to the 1930s.

T-Mobile on the other hand, has not been a fan of Title II, which says something because the carrier does not operate any facilities that would be affected by such measures. T-Mobile CEO John Legere has said that he favors seeing broadband services be regulated, if they must, under Section 706 of the Telecommunications Act of 1996.

AT&T has stated, in an effort to ensure approval of its acquisition of DirecTV, that it will commit to whichever rules are handed down by the FCC, or whatever is litigates in the courts, regarding net neutrality. Verizon and other operators have been ardently opposed to seeing strict rules apply to what has referred to broadband up to now as an “information service.”

Wireless service falls under that “information service” definition, and not only have several companies promised to take the matter to court if the FCC opts for stiff regulations. The industry has successfully stopped the FCC from instituting such rules in court twice already.

CEO for CTIA-The Wireless Association, Meredith Baker, said in a statement, “We have significant reservations with any approach that applies intrusive public utility regulation on mobile broadband for the first time, which is why Congress’s consideration of net neutrality legislation is the best path forward to provide certainty to all stakeholders.”

Therein lies another rub for the FCC. Many in Congress, on both sides of the aisle, do not believe the FCC has been afforded appropriate authority, which is granted by Congress, to make such rules.  The fact that the FCC had an unprecedented amount of public feedback has many members of Congress stating that legislation is in order to address the issue.  President Obama made headlines last November by calling on the FCC to classify the internet under Title II regulations. 

Title II, if it were implemented fully, would impact broadband in everything from pricing to how services and features are deployed, and even installed. The FCC will likely exempt companies from being burdened by many such parts of the regulations. The extent by which such rules might be set aside is not known.

Title II regulations were written in an era that predates any data communications as we enjoy them today, and that makes them vague according to Verizon in a filing to the FCC last month, ““[T]he vague standards of Title II themselves breed investment-chilling uncertainty over the scope of future regulation, particularly given the inevitable propensity for regulatory creep.”

How will this affect our wireless service? In the immediate term, nothing. However, if not properly thought through and implemented, it could open the gates for a slew of new high-bandwidth content providers, and too much, too fast, equals congestion, and you know what that means.

The FCC commissioners will vote on the new rules during the next open meeting on February 26th.

source: The Wall Street Journal