Tag Archives: utility

FCC reclassifies the internet, approves net neutrality rules

The Federal Communications Commission has just approved their plan for net neutrality, which also reclassifies broadband Internet as a public utility.

Under Title II of the 1934 Communications Act, the reclassification of the internet as a public utility allows the FCC to place regulations on Internet service providers (ISPs) such as Comcast and Verizon. These regulations would mandate these service providers to transmit all Internet content at the same speed, regardless of what interests are involved, according to Newsweek.

According to engadget, the FCC chairman, Tom Wheeler, said, “It [the internet] is our printing press; it is our town square; it is our individual soap box and our shared platform for opportunity… That is why open internet policies matter. That is why I support network neutrality.”

Net neutrality, also known as open Internet, is an idea which says all Internet networks and content are equally available to all legal content generators, according to USA Today. Therefore, a practice called “paid prioritization” which results in ISPs showing preference towards companies who pay more for higher transmission speed of content, would be illegal.

The new reclassification also affects wireless data providers. The new plan places similar regulations on phone companies as those placed on other ISPs.

However, some people have spoken out against the new net neutrality plan.

Jim Cicconi, AT&T’s senior executive vice president-external and legislative affairs, said, “What doesn’t make sense, and has never made sense, is to take a regulatory framework developed for Ma Bell in the 1930s and make her great grandchildren, with technologies and options undreamed of eighty years ago, live under it.”

Republican Commissioner Ajit Pai said, according to FOX News, the plan represents a shift of power to allow the government to control the internet. Pai also warned the new plan would result in intended and unintended consequences, such as rate regulations. “The order explicitly opens the door to billions of dollars in new taxes… Read my lips: More new taxes are coming. It’s just a matter of when.”

The FCC has said the new regulations will be posted online soon and will be published in the Federal Register. The new regulations will also go into affect 60 days after their publication.

President Obama wants internet to be considered a utility

After months of plans to create “high-speed” and “slow-speed” broadband connections at different costs, President Obama has come forward urging the FCC to reclassify the internet as a public utility.

“The time has come for the FCC to recognize that broadband service is of the same importance [as the traditional telephone system] and must carry the same obligations as so many of the other vital services do,” President Obama wrote in a statement released on the White House’s website.  “To do that, I believe the FCC should reclassify consumer broadband service under Title II of the Telecommunications Act…”

The internet usage described by the president is not exclusive to laptop and desktop computers however.  Internet usage across mobile devices, such as cell phones, would also be covered.

[T]he rules also have to reflect the way people use the Internet today, which increasingly means on a mobile device,” the statement continued.  “I believe the FCC should make these rules fully applicable to mobile broadband as well, while recognizing the special challenges that come with managing wireless networks.”

As part of the call for reclassification, ARS Technica writes some basic rules would need to be implemented.  Some of these rules include not blocking particular websites, internet speeds should not be throttled, and there should not be a difference in a services speed based on what they pay.

President Obama said, according to the Hill, making two different speeds for internet service would “undermine the level playing field essential to the Internet’s growth…”  

This is not the first time President Obama has spoke out against internet “fast-lanes” either.  In October, the president spoke at a town hall meeting in California where he called for a ban on “fast-lanes” but offered no plan on how to do so.

FCC Chairman Tom Wheeler said he agrees the internet should not be advantage to some and not others, but at the same time said he and the FCC were working on a “hybrid” plan which would regulate transactions between websites and internet service providers.

The new FCC plan is expected to be unveiled by year’s end.