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FCC passes net neutrality rules, reclassifies broadband as utility

Grant Gross | Feb. 27, 2015
The U.S. Federal Communications Commission has voted to approve new net neutrality rules by reclassifying broadband as a regulated public utility, over the objections of the commission's Republican members and large broadband providers.

The U.S. Federal Communications Commission has voted to approve new net neutrality rules by reclassifying broadband as a regulated public utility, over the objections of the commission's Republican members and large broadband providers.

The commission voted 3-2 Thursday to approve net neutrality rules that prohibit broadband providers from selectively blocking or slowing Web traffic and from offering paid traffic prioritization services. The commission's vote on the new rules prompted loud applause from the audience at the FCC meeting.

The new regulations will almost certainly face a court challenge from broadband providers, and a court case could drag out for years. Verizon Communications, AT&T and Comcast have all opposed reclassification of broadband.

The rules are grounded in a reclassification of broadband from a lightly regulated information service to a more heavily regulated telecommunications service, although FCC staff said the agency will forbear from applying about 700 traditional telecom rules, such as price regulation and forced sharing of networks with competitors.

The order applies net neutrality regulations to mobile, as well as fixed, broadband providers, but temporarily exempts small broadband providers from some of the new rules.

The new rules will prohibit broadband providers from acting as gatekeepers to Web content, said Democratic Commissioner Jessica Rosenworcel. The Internet is "our printing press, our town square," she said. "We cannot have a two-tiered Internet with fast lanes that speed the traffic of the privileged and leave the rest of us lagging behind."

The commission's two Republicans protested the order, saying it ends 20 years of bipartisan agreement on light-touch regulation of the Internet. The new rules potentially open Internet service up to new taxes, including state taxes that broadband providers will have to pass on to customers or cut from their deployment budgets, said Republican Commissioner Ajit Pai.

The FCC could eventually use the order to subject broadband service to Universal Service Fees, a current 16 percent tax on telephone service, he said.

The FCC "flip-flopped" from an earlier net neutrality proposal from Chairman Tom Wheeler that didn't include reclassification of broadband because President Barack Obama pressured the agency, Pai said.

"Put simply, President Obama's plan to regulate the Internet is not the solution to a problem," Pai said. "His plan is the problem."

The FCC order also opens up broadband to rate regulation, with the agency banning commercial arrangements involving traffic prioritization, Pai said.

The agency's ban on commercial arrangements involving traffic prioritization amounts to rate regulation, Pai said.

Wheeler defended the rules, saying free expression on the Internet is too important "to be left without rules and without a referee on the field." He also disputed critics who say the net neutrality rules amount to regulation of the Internet.

 

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