Wednesday, April 07, 2010

USA - Intermission on Net Neutrality

[wsj] An appeals court decision against the Federal Communications Commission's effort to sanction Comcast for blocking some Internet traffic is welcome news. But investors can't relax. This drama is far from over.
[fccher0406] Associated Press

Indeed, the ruling was somewhat expected after the tone of a hearing several months ago. The question then was whether the court would rule the commission has no power to regulate the Internet. Initial readings of Tuesday's decision were that the court didn't go that far, instead requiring the FCC to support actions like that against Comcast with reference to specific statutory authority.

That surely complicates the FCC's ability to make "net neutrality" rules requiring equal treatment of Internet traffic. But it shouldn't provide an obvious justification for the FCC to classify broadband providers as common carriers like wired phone companies under Title II of the Communications Act, as some in the industry fear.

Such a step would allow the FCC to impose stringent regulations on Internet-service providers, such as forcing them to open networks for resale. That would clearly chill investment in broadband at the very time companies need to spend money.

Intermission on Net Neutrality

No comments: